Malaysian consumers have embraced a digital lifestyle and made contactless payments as their key payment method in this Recovery Movement Control Order (RMCO). According to insights by homegrown e-wallet Boost, its users are spending an all-time high with a 100% increase in total Gross Transactional Value (GTV) in August 2020 compared to December 2019. Boost also notes that its users are supporting more local businesses post-MCO, with an 85% increase in user spending at its merchants in the Micro and SME (MSME) business segments in July 2020 compared to April during the MCO.
In demonstrating the spirit of Malaysia, the rakyat has taken it upon themselves to support each other, showing strength through unity and reinforcing the importance of rebuilding the economy together. From shopping at online Ramadan bazaars to mom and pop shops, the country continues to benefit from the rakyat producing and spending within our borders as much of the world remains in a state of lockdown.
This is also apparent in Boost’s total monthly GTV showing a strong 77% increase after the MCO period between April and August. The Boost Payment Link, a contactless payment solution developed for MSME merchants introduced at the start of the MCO has also seen an increase in transactions by 21 times (21X) to-date. These trends place Boost in a strong position to bring merchants and users together on one platform by leveraging an ecosystem that fulfils their business and lifestyle needs in a sustainable manner. Boost currently has 8.5 million users.
“While MSMEs have been hailed as the backbone of the economy, it takes consumer spending to spur economic recovery. Collectively, Malaysian businesses and consumers have the power to impact the economy positively and Malaysians understand this. According to our data, Boost merchants from the small and micro-business segment performed better at maintaining earnings during the downturn compared to larger enterprises. This shows that Malaysians are aware of the impact of their purchasing power and naturally shifted towards supporting MSMEs by shopping and dining locally, and still continue to do so. This is why I am proud to be Malaysian. We know when to come together to uplift one another and times like these is when our strengths shine through,” said Mohd Khairil Abdullah, CEO of Boost.
Khairil also noted that, in the CMCO period, where business activity was partially opened, total user spend with Boost continued to pick back up to pre-MCO levels, even higher than the spending during the e-Tunai Rakyat period.
During this time, many homegrown businesses, including MSMEs in the F&B, services and retail sector, took the opportunity to digitally transform their businesses for long term resilience.
“I like how more local businesses, especially food stalls and grocery shops near my home, are now accepting cashless payments such as e-wallets. This means I don’t have to leave my neighbourhood which is safer as I don’t have to travel far or find myself in a crowded place. It’s important that we all support local businesses and help them keep running,” said 28-year-old communications executive Cheng Shuk Yin.
The support for MSMEs continues to grow as they journey towards digitisation by adopting e-wallets like Boost, as a safe, convenient and seamless payment method.
“Since the MCO, I have been encouraging my family and friends to adopt cashless payments for their own safety and convenience. One friend even implemented cashless payments at his stall and has received positive feedback from his customers. Today, I can order from him and make an advanced payment using a payment link he sends me, then collect my order at my convenience. It’s personalizing a service using technology that helps fill the gap that social distancing has created in this new normal,” said aircraft maintenance engineer Kumaran Krishnasamy, 42.
“While businesses in Malaysia continue to transform themselves to remain resilient, this Merdeka, let’s make a conscious effort to continue safeguarding and supporting our family, friends, neighbours, colleagues and communities for the collective betterment of our nation. #KitaBoostKita,” Boost CEO Khairil concluded.