Electronic money transactions can happen via a credit card terminal, or an app based mobile payment. Malaysia, like all other growing economies, has a considerable demand for banking services like online accounts and payment gateways. Malaysian cities like Kuala Lumpur might even be among the first cities in Asia where cash would become obsolete.

The concept of money is very old, and it seems to have evolved with us according to the times and trends. Currently, since human life is gradually digitalizing, we can expect money to get an electronic avatar as well. However, this transition is very different from digital socialization or education. Mobile payments in Malaysia's economy has made it possible for the whole region to capitalize of Singapore's popularity as a global financial hub.

Mobiversa is one of the first native Malaysian companies to design their own POS device, as well as app based payment gateway. Malaysia's local business community is also capitalizing on these products. However, we have to see why this is all leading to a era of cashless payments.

How Payment Gateways in Malaysia Caught On

Initially, only bigger businesses could offer online payment for their customers. There were no native Malaysian service providers for electronic transfers. International companies charge up to 5% surcharge on their transactions. Hence, a larger portion of the economy stayed loyal to cash for their day to day dealings.

However, digital payments first appeared thanks to the popularity of online shopping through smart phones. The retail markets had to keep up with this trend to stay relevant in the market. This led to the popularity of wireless POS terminals and mobile payments. Malaysia's retail businesses had to provide these services to reach the wider consumer base.

Mobiversa introduced two applications alongside EZYWAY, their payment gateway. Malaysia's first native money transfer mobile apps were EZYMOTO and EZYPASS. These apps were the first step to a rapid digitalization in the way people exchanged money in the country.

Why EZYWAY is the Best Online Payment Gateway in Malaysia

When it comes to money, people want a local company with the stability and establishment of a large corporation. Nationalized banks represent such an institution, especially since they are regulated and monitored by the government. However, the same cannot be said of every application for mobile payments. Malaysia's businesses could not place their full trust into a company that was based out of the country, and a system which was not locally regulated.

EZYWAY changed that by introducing the first native online payment gateway. Malaysia based businesses now had a local service provider they could trust. However, being so closely associated with the Malaysian economy, the Singapore market came as a bonus. Many of Singapore's small and medium businesses today use Mobiversa products like EZYWIRE and EZYWAY. This led to the product's great success, and it's current position as the best online transaction service provider in the region.

How Mobile Payment in Malaysia has Affected the Economy

There are several ways in which online and digital payment systems have changed the economy. What was initially only feasible for large companies and businesses is now a convenience for all. However, to understand the real-world effects of mobile and online payment gateways in Malaysia, we must look at the situation in layers -

Local Businesses Have a Wider Reach and More Resources

If you business depends on delivery of goods and services, cash has a disadvantage. The customer might not want to make a full or partial payment before receiving the service or product. However, since there was no native system for mobile payments, Malaysia's small enterprises had to depend on a Cash on Delivery model.

However, the cash based system has a number of flaws. For one, the client may not have sufficient cash in hand during delivery. Also, the delivery person may not have the necessary amount in exact change. Another critical issue is applying EMI or partial recurring payments to the vendor's business model. This all changes when it's an online payment gateway. Malaysia now sees more mobile and card transactions amongst smaller businesses and individuals than cash. Companies like Mobiversa have made this transformation possible.

Consumer Behaviors Have Changed to Cashless

Mobile payments in Malaysia is have been popularized by changing consumer behaviors in the country. A large number of consumers in the Malaysian economy today are foreigners. They prefer the security and ease of an online payment gateway. Malaysian businesses had to capitalize on this segment of the consumer base. Hence, it was obvious that the popularity of online payment systems would spread amongst competing businesses. Gradually, the younger generations of Malaysia also began to use cashless transactions or mobile app based banking.