iPay88 Sdn Bhd, a Malaysian-based leading provider of online payment service and payment solution provider, shared some of its insights into the “country’s upcoming Services Industry’s sub-sector of e-commerce”. iPay88 is a subsidiary of NTT Data Corporation.
Executive Director of iPay88 Chan Kok Long, says that the company’s payment gateway systems support over 60% of e-commerce businesses in Malaysia.
He says, “From the transaction patterns and volume recorded from our systems, it is highly indicative that this Services sub-sector is poised for strong growth in 2016. In fact, with-in year 2015 of iPay88 operations, the total value of eCommerce transactions recorded in our payment systems have increased by 100%.”
As of 2015, Bank Negara recorded that 50% of Malaysian companies have some form of digital presence – referring to any organization that has a website or has basic email or online communications. However, Chan claims that only a mere 5% of Malaysian companies have adopted e-commerce.
“Having a digital presence is not equivalent to eCommerce; because eCommerce requires that the business must have transacted online – via the usage of internet-based systems and networks, resulting in some form of income or revenue generation,” he explains.
He also says that iPay88 is hopeful that the number of Malaysian companies adopting e-commerce will double by the end of 2016. “This is not an unrealistic expectation based on the statistics and online market trends that we have been observing over the recent years.”
According to a Statista report, the revenue projected in the eCommerce market (excluding e-Services) in Malaysia for 2016, is expected to touch USD991.1 million. On a more global scale, within the next five years, e-commerce sales worldwide is projected to eclipse USD3.5 trillion (from eMarketer report).
In ending, Chan says that iPay88’s positive outlook for Malaysia’s Services sub-sector of eCommerce is only evident of the long availing ‘equilibrium’ phenomenon of general business. “There will always be some sort of equilibrium in business. So even when the general economy may be going down, there will be growth in some other area – which is in this case is eCommerce and mobile commerce (m-Commerce) for Malaysia in 2016.”
iPay88 online payment gateway solutions are available in Philippines, Indonesia, Thailand, Singapore and Vietnam.