From GrabPay to TNG: A Brief History of Payments Development in Malaysia

From GrabPay to TNG: A Brief History of Payments Development in Malaysia

Malaysia's e-payments market has undergone rapid change in recent years, with a gradual shift from traditional cash transactions to digital wallets and mobile payments. In the course of this transformation, theGrabPayrespond in singingTouch 'n Go (TNG) eWalletIt has become the two leading platforms that have fuelled the process of a cashless society. Below are the key points in the development of e-payments in Malaysia:

1. Early stage: cash-based era

• Prior to 2010: Malaysia is highly dependent on cash transactions and has limited penetration of credit and debit cards.
• Bank transfer and online payment: Internet banking services such as Maybank2u and CIMB Click were early prototypes of electronic payments.

2. Rise of GrabPay (post-2017)

• contexts: Southeast Asian mega-app Grab launched GrabPay in 2017, initially as an add-on to its taxi service.
• expansion strategy::
  • Attract users through subsidies (e.g. cashback, discounts).
  • Integrate catering, takeaway and retail scenarios.
  • Supports P2P transfers and QR code payments.
• challenge::
  Need to compete with TNG which is more localised.

3. Touch 'n Go eWallet's local strengths

• TNG was originally a transport card (motorways, buses), then upgraded to a digital wallet with investment from Ant Group (2017).
  Features:
  • NFC technology is compatible with existing transport card functions
    Government co-operation projects such as "e-Tunai Rakyat" (vouchers to be issued in 2020)
    -Extensive access to offline merchants and vendors

4.Other key players
Boost (under Axiata)
ShopeePay (e-commerce scenario driven)

5.*Regulation and future trends
Bank Negara pushes for DuitNow QR standardisation
Central Bank Digital Currency (CBDC) in pilot programme

5. Regulation and future trends

(1) Standardisation and Interconnection: DuitNow QR

Bank Negara Malaysia (BNM) pushes for payment system harmonisation to be launched in 2019 DuitNow QR, which became the national standard for QR code payments.

• corresponds English -ity, -ism, -ization: Break down barriers between different e-wallets (e.g. GrabPay, TNG, Boost, etc. can all scan the same QR code for payment).
• Cross-border expansion: Support connectivity with ASEAN countries such as Thailand (PromptPay) and Indonesia (QRIS) from 2022.

(2) The rise of buy now pay later (BNPL)

• Platforms such as GrabPay Later, Atome, Split and others offer instalment services to cater to young consumers.
• BNM tightens regulation in 2023 by requiring BNPL providers to conduct credit assessments to prevent over-borrowing.

(3) Central Bank Digital Currency (CBDC) Pilot Scheme

Bank Negara Malaysia is testing a "Digital Ringgit" with targets including:
✅ Wholesale CBDC (for interbank settlements) → Improve the efficiency of the financial system;
✅ Retail CBDC research phase → Possible replacement of some cash transactions;
⏳ Expected to be phased in by 2030.

6. GrabPay vs TNG eWallet: Current Competitive Landscape

[7] Three major directions for the future

1️⃣ Super App Inside Volume (e.g. Shopee joining the finance business);
2️⃣ Cashless Society Policy (Government target 2026 for 80% transactions to be digitised);
3️⃣ AI+Payment (fraud detection, personalised recommendations).

📌 In summary, as seen from the GrabPay and TNG rivalry to the state-led DuitNow QR standardisation process - Malaysia is accelerating towards a cashless society but is still balancing innovation and regulation!