DIGI Telecommunications Sdn Bhd on Nov 9 announced their entry into the fintech space with vcash – a mobile payment application that offers Malaysians an easy, more convenient way to pay, send, request and store money in their smartphones.
vcash is a solution offered by Digi in partnership with Valyou Sdn Bhd, an e-money issuer authorised by Bank Negara Malaysia (BNM) and is now available for all Malaysians on the Google Play Store or Apple App store for free.
vcash offers a secure and fast payment service using QR codes. Beyond payments, vcash also enables funds transfers between vcash users and also to non-vcash users, facilitates cash deposits and withdrawals at any time, and purchase of items from the in-app vcash store. Users do not have to pay transaction fees for using any of these features.
The company also announced its nationwide merchant line-up with brands such as Astro Go Shop, Ezbuy, Fish & Co., Life Juice, Major Drop, Manhattan Fish Market, Mydin, Nice Catch, NY Steak Shack, RedTick, Sam’s Groceria, TAPAK, The Lorry, Tony Roma’s, TR Fire Grill, and more, where Malaysians can use vcash to pay for purchases.
To date, vcash is available at 500 physical touchpoints nationwide, with aspirations to grow these touchpoints to 2000 by year-end.
In addition, vcash will also be made available as a payment option for merchants under MOLPay and iPay88’s online payment gateway networks.
“vcash is set to enable more Malaysians, both merchants and consumers, to transact in a cashless environment with its low barrier to adoption, namely by allowing users to overcome the risks of using cash, hassle of opening a bank account and approval processes related to debit and credit cards, or using device-specific payment solutions that require the purchase of high-end devices,” said Digi chief digital officer Praveen Rajan.
“There is currently more than RM85.5 billion cash in circulation, and an early aspiration for vcash will be how much of cash-based transactions we can convert to digital. Our aim is to offer Malaysian consumers and merchants a simpler, more elegant, more progressive, risk-free payment solution.
“There is a cost to using physical cash, and in a study by BNM, total costs incurred by the banking industry, the business community and BNM in cash handling and management was estimated at around RM4.8 billion in 2012.
“For adoption to happen, there needs to be a big education drive for users and businesses on the merits of going cashless, and that is a task for all existing players. We need to build the mobile payments category together for this shift to happen, and Digi is excited to play a leading role in driving this change.”
vcash makes online and offline transactions as easy as possible for consumers. Users simply need to download the app from the Google Play Store or Apple App store for free, set-up and deposit money into their account, scan the merchant’s QR code and input the payable amount to make payment.
All transactions are completed with a six-digit PIN or fingerprint authorization.
To deposit money into the vcash app, consumers can either walk into a Digi store to deposit cash over the counter, or online banking via FPX or JomPAY.
vcash is supported by a network of deposit points consisting of more than 300 Digi Stores and dealerships, and the internet banking platform of 21 retail banks in Malaysia via FPX and JomPAY.
With vcash, consumers can store, send, request and withdraw up to RM5,000 depending on their account tier – Basic, Enhanced or Premium. Enhanced and Premium tiers require verification – a Photo ID and face-to-face verification respectively.
Lower business costs
For businesses, a cashless environment eliminates costs and risks of storing cash and payment bottlenecks in the supply chain.
vcash offers significantly lower costs for merchants:
- Lower MDR compared to other payment methods
- No annual fees
- No installation fees
- No special equipment or hardware
With vcash, businesses reap the immediate benefit of knowing their customers better. With access to analytics, they have a helicopter view of their business, enabling them to leverage customers’ spending behaviour, track returning customers and competitor analysis.
Further, vcash removes the hassle and risks of handling physical cash with fast settlements of one to two business days for cash amounts to be reflected in the merchant’s bank accounts.
vcash is a customisable solution that suits all business types and sizes. It can work with zero integration, in which case vcash is treated as a cash transaction and a replacement of physical cash, or it can be fully integrated into a merchant’s POS system, which allows for vcash transactions to be customised according to the merchant’s needs.