NEARLY three-quarters of online purchases in Malaysia are made via mobile devices and the percentage is likely to increase, said a leading payment gateway provider in Southeast Asia.

Data compiled from Malaysia’s three major online marketplaces – Lazada, 11street and Shopee – showed that 70% of online transactions during “Single’s Day” and “MyCyber” sales were made via mobile devices, reported the Xinhua news agency, quoting iPay88.

“Mobile users are growing faster than anticipated. We expect the momentum to continue,” ipay88 executive director and co-founder Chan Kok Long told Xinhua in a recent interview.

There are currently 42.8 million mobile phone subscriptions in the country, according to Bank Negara Malaysia, while smartphone penetration stands at 70% and is expected to increase.

Mobile transactions are expected to exceed 70% in the next two years. Last year, the percentage stood at 50%.

Chan said two major Chinese online payment companies – Alipay and WeChat Pay – could potentially double the number of online transactions.

“Although Alipay is new in Malaysia, the growth potential is tremendous because of the increasing number of Chinese tourists in Malaysia.”

Chan sees great potential in WeChat Pay, which will be unveiled in Malaysia early next year.

There are 20 million WeChat users in Malaysia and 600 million users in China.

Earlier this year, Alipay, a unit of Alibaba affiliate Ant Financial, inked agreements with Malaysian banks for the rollout of its service.

Competitor WeChat Pay, which is by Tencent Group, was then granted an e-payment licence in Malaysia.

It has secured Hong Leong Bank as its partner for the service. – December 11, 2017.