Why ewallets are essential to e-commerce

Electronic commerce (known as e-commerce) allows business models to sell goods and services over the internet. The common goal of e-commerce is to boost sales of commercial transactions that are digitally done. It is strongly and strategically supported by the government as finance minister Lim Guan Eng shared that the goal of the e-Tunai Rakyat program that works closely with 3 prominent eWallets Boost, Grab and Touch N’ Go (TnG)  is to shape society into a digitally dependent finance system. To move the nation closer to becoming a cashless society, e-Tunai Rakyat program initiated its goals by providing adult citizens earning under RM100,000 a year a RM30 payment through one of the eWallets mentioned. 

It is applicable to both virtual products and physical products as e-commerce has a diverse function. E-commerce can be integrated in business to consumer (B2C) work models which refers to a business that directly serves consumers and  business to business (B2B) work models which refers to a business that serves another business. 

Why should you  partner with an eWallet provider for your B2C e-commerce business? 

Most online stores lose potential customers because of lengthy checkout processes. The thought of whipping out your credit/debit card and keying in personal information such as billing addresses and contact numbers is daunting for most people. eWallets allow customers to checkout in seconds. Also, customers are more encouraged to purchase online products when it is linked to a digital wallet they trust and use. 

The positive effects that eWallet have on B2C e-commerce are demonstrated in virtual shops such as Ikea (furniture retail), Dell (tech retail), Zalora (fashion retail) and 20 million other digital merchants that are partnered with paypal. Paypal is an e-wallet that secures online payments through providing efficient payment methods. The application helps you deposit, withdraw and transfer cash for personal or business related reasons. Digital businesses with a paypal checkout option increase sales by 82%. Paypal adds credibility, value and turns a business into a multi-channel platform. It accepts 25 currencies and different types of payments such as Mastercard, Unionpay and more. This is also applicable to social media businesses such as an instagram clothing store. These businesses can get a PayPal.me link that will allow their buyers to purchase items at ease. 

Touch N’ Go eWallet (TnG eWallet) offers a payment option for Lazada shoppers. The collaboration gave birth to great value deals during Lazada’s notable 11.11 sale and revealed the online marketplace in Malaysia is home to 16.5 million online shoppers. TnG eWallet is trusted by 14 million users and supports 250,000 merchants. It has a nationwide reach coupled with a free guide to kickstart your business! TnG Wallet is always coming up with ways to boost the sales of their merchants through creative campaigns and marketing schemes. This allows TnG merchants to gain free publicity through social media, out-of-home, print and broadcast advertisements. TnG Wallet also increases it’s merchants’ sales and improves profit margins through targeted advertising, consumer insight and relevant campaigns. 

Grabpay is one of the leading eWallets in Southeast Asia. It covers over 600,000 merchants. It is notable for advanced technologies that will allow businesses to benefit from Grabpay’s online checkout function. Grabpay also supports small sized businesses with it’s policies that have been approved by the region’s biggest merchant gateways. It has POS device integration which allows business owners to explore ASEAN’s consumer insight without compromising their hardware or sales system. Grabpay has also recently introduced a new feature, “Pay Later”. It is a post-paid model that facilitates customers that are keen on purchasing products from Grab without increasing personal loan or getting a higher credit card limit. “Pay Later” bills customers at the end of the month for all their Grab purchases with no additional cost. Grab allows its merchants an access to insurance plans and upskilling opportunities to secure their businesses. 

 Why should you partner with an eWallet provider for your B2B e-commerce business?

B2B e-commerce needs to stay current by providing more streamlined purchasing processes.  In 5 years, almost every consumer-focused website is attached with a mobile application as the primary interface. B2B businesses are falling behind the market if they only offer outdated payment schemes such as trade credit, purchase orders, cash on delivery and paper checks. 

Be it a bulk worth millions in cash or just common office supplies, B2B purchases are often larger and more complicated than their B2C counterparts. Hence, The B2B industry is reacting to individual demands for flexible payment systems. 

The WEX Paygenus is a modern B2B payment network, designed strategically with reliable tracking tools that connects buyers and suppliers. It delivers simplified payment execution that forms long term relationships between businesses. WEX Paygenus ensures maximum buyer and supplier engagement by delivering a standardized approach to payment processing, cost savings and improved cash flow, and a balanced approach across the financial supply chain. The advantages are as beneficial for the supplier as they are the buyer.

Newt is an international digital wallet meant for B2B transactions. It provides payment solutions that reduce cost, increases profits and manages investments. This e-wallet helps B2B  businesses track spendings, pay bills, issue invoices and eliminate fraud. 

Paypal serves B2B models just as effectively as B2C models. Paypal comes with a function known as Buyer Protection, it covers faulty supplies by returning a full refund to buyers if the order is no longer available. PayPal Invoicing provides reliable tools to create and convert estimates to invoices, as well as schedule recurring invoices. Buyers can make a payment via credit/debit card or use their PayPal account to settle payments in an instant.

Grabpay penetrates the B2B market through its service called GrabMerchant. GrabMerchant is an initiative by Grab to help small businesses during Covid-19. Grab’s merchant-partners can order supplies at wholesale rates. This initiative will allow businesses to build their own ads on the Grab app and  set up cashless payment options. GrabMerchant  also offers data analysis tools to track sales, operations, revenue, and marketing performance. The goal of this platform is to kickstart Grab’s Small Business Booster Programme, which aims to help small businesses thrive during tough times. A new feature called Merchant Discovery will be visible to increase merchants’ value on the Grab app through the Nearby Merchants widget. The platform will grant 6,000 businesses customised marketing that is worth US$3.5 million. 

Almost everything can be transacted via digital means as the data portal Statista, revealed execution of the  e-Tunai Rakyat program by the government will increase digital payments by 10% and it is predicted to accumulate in $17 billion in a few years. Therefore, both B2C and B2B businesses must adapt to stay active in the ever evolving marketplace. Learn more about which eWallet will be the most effective by comparing the values of Malaysia’s most esteemed digital wallets here.