Will Revenue group venture into e-wallet?
From selling photostat to credit card machines, could Eddie Ng, CEO of Revenue Group, be looking now to ride the e-wallet wave?
The e-wallet, which is the digital version of the physical wallet, has become popular as consumers are attracted to more convenient modes of payments that do not use cash or physical credit cards.
Quick to change with the times, Ng sees that with the digital upsurge caused by the pandemic, usage of e-wallets which have a growing list of functions online, would be the upcoming norm.
The prospects can be exciting but Ng has to find prospective partners with a large user base that has the potential to significantly increase the number of transactions.
At the same time, this approach should result in a fast and low-cost means of acquiring users.
Revenue Group can provide the link to its prospective partners in e-wallet, to accept payments online through a computer or smart phone.
“This coronavirus has brought about an instant behavioural change; while consumers took 20 years to accept usage of physical credit cards, they now have no choice but to go online immediately,’’ said Ng.
With a merchant base of 65,000, Revenue Group sees that the main challenge is to get the consumers, most of who have been heavily impacted by the lockdown.
Currently, banks are partners to the Revenue group which gets recurring income in the form of maintenance fees, from providing the link for purchases with credit cards mostly via online websites now.
During the current downturn caused by the pandemic, this payment gateway business especially via physical credit card terminals, has been hit as malls and physical retail locations were shut.
While payments online through credit cards have gone up, the group needs to find other income streams to offset the overall slowdown in business.
It would be more challenging if this Covid-19 situation drags on and impacts consumers further.
But Ng believes this slowdown is likely to be temporary, and retail transactions through credit cards, will likely bounce back.
Starting out in 2003, Ng has come a long way from just providing credit card machines, to developing infrastructure and back end solutions.
The business grew rapidly especially after 2015 when chip and pin technology for credit cards was introduced.
Way back in the year 2000, many e-commerce projects had started with credit card machine technology picking up, as it was costly for banks to handle physical cash; such costs came up to 5% to 10% of the total value.
Ng had made the switch from selling photostat machines weighing 60 kilograms to credit card machines of 60 grams, at the right time, when the trend was moving towards more environment friendly products with less usage of paper.
From just three founders and two staff, the Revenue group now has 200 staff nationwide.
Having been through the many developments in the credit card industry, Ng and his team may now be poised for the next challenge in the world of e-wallet.
The e-wallet market is projected to grow to about US$20 billion by 2024, with retail, e-commerce and peer-to-peer transfers among the most popular transactions, said PwC Malaysia back in 2018.
Yap Leng Kuen had a respected career as a senior business editor and widely read columnist speaking plainly, for the leading local newspaper. She continues to write Plain Speaking for The Star Online.
I am delighted to share her view points and insights, here.