Driving an innovative way of payment across South-east Asia

Asia is going through a payment revolution in the digital economy, said Punnamas Vichitkulwongsa, CEO of Thailand-based Ascend Money, who tells Muneerah Bee how it is all changing and what retailers should do to move towards a cashless society.

How is Asia adapting to mobile payments?

Punnamas Vichitkulwongsa: In countries such as China and India, the adoption of mobile payments has made strong progress. In South-east Asia, despite the immense opportunity for mobile payments to expand financial services — and the digital economy — to a largely unbanked and underbanked population, adoption has been much slower.

The adoption of mobile payment technologies requires a shift in consumer behaviour. This is where FinTech companies can play an important role in innovating how consumers meet their daily needs with greater convenience at low cost. Ascend Money starts from the consumer pain point, by solving basic problems such as having to walk very far to pay a bill. From there, we can gain consumers’ confidence and build momentum to encourage greater adoption over time.

What are the advantages of mobile wallets that retailers should take note of?

Punnamas: Greater mobile wallet use brings several advantages to retailers. Retailers can benefit from the security and cost-effectiveness of mobile payments while leveraging the opportunity to keep customers loyal through app-based loyalty programmes. In addition to reaching a large population of consumers who have never had a bank account or who use different payment options, mobile wallets can also help retailers to digitise and stay competitive in the digital economy.

Ascend Money has been partnering with retailers across South-east Asia to help them go cashless in various facets of their operations. By equipping merchants with electronic data capture (EDC) and providing training and accreditation, Ascend Money works with businesses and entrepreneurs to become TrueMoney agents which are capable of performing digital financial services for customers — remittance transactions, bills payments, gaming credits and payments for e-commerce purchases.

By connecting the adoption of mobile wallets to vast networks of trusted, local merchants, both retailers and consumers can benefit together from a cashless society.

What are some of the latest development in mobile payment technology?

Punnamas: In South-east Asia, mobile wallet technology is evolving to provide consumers with a wide ecosystem of services — ranging from hailing rides and purchasing bus tickets and flights, to paying bills and making investments. More mobile wallet operators have also been increasing their use of quick response (QR) codes and contactless payments to bridge offline and online channels.

What are your thoughts on the future of mobile wallets?

Punnamas: In the future, mobile wallets that can cut across all aspects of consumers’ lives and provide access to financial services anytime and anywhere will have a strong competitive edge. To this end, Ascend Money is leveraging its position as the only FinTech company with a licence to operate e-money in Thailand, Cambodia, Vietnam, the Philippines, Indonesia and Myanmar to build a “super app” for ASEAN consumers’ financial needs.