WeChat, Tencent’s messaging mega app which is an one-stop platform for daily services had officially launched its Malaysian Ringgit Wallet, WeChat Pay MY on 21st August 2018. It is first expansion of such in Asia outside of China and Hong Kong, which feature peer-to-peer (P2P) functionality and will allow users to pay offline merchants in local currency. Similar to its China version, WeChat Pay offers linking bank accounts, topping up phone cards, and buying plane and train tickets but the functions are still limited in comparison.
To kickstart the Malaysian Mobile payment wallet, WeChat had launched a campaign where it provided free e- hongbao (red packet filled virtual with money) for all users with a random amount ranging from RM3.88 to RM88.88 to anyone who signs up for WeChat Pay MY
WeChat have about 20 million active users throughout the country, which has a total population of 31 million. The news of the new service by WeChat was welcomed especially for users who prefer the familiarity of WeChat and don’t wish to download or sign up for other mobile payment.
WeChat’s penetration in Malaysia could lead to the mobile firm replicating the success of WeChat Pay in China. Nonetheless, WeChat Pay may still faces many road blocks ahead, as in Malaysia alone, there are already 44 nonbank entities registered with the Malaysia’s central bank to promote electronic payment and has an e-money licenses.
However, with WeChat Pay setting itself to be different with its Quick Pay function, which enables the merchant to scan the users QR code on their WeChat app, providing faster transaction to be done, as well as, a good track record with its Chinese consumers in China and Hong Kong, as well as a large base of merchants that already adopted WeChat Pay previously only available for China users, which will be more acceptive to the new WeChat Pay MY. One of such merchants is KK Super Mart, the first chain store in Malaysia to adopt WeChat Pay MY.
All in all, with so many cashless mobile payment options in Malaysia, will WeChat Pay MY be a success? We will need some time to know, as WeChat Pay adopts more merchant in Malaysia.