Ant-financial in establishing the early stage of the Alipay eco system in Malaysia [2024] (2025)

Alipay entered Malaysia: a closer look at the new market entry strategy driven by Chinese tourists

Qualitative Research in Financial Markets, 2020

Purpose This study aims to investigate the entrance of Chinese-based Alipay’s mobile-payment (m-payment) technology into Malaysia. Malaysia allowed this entry of the first foreign m-payment company because it would allow Chinese tourists spending while they are visiting Malaysia. It will view this entrance from a Malaysian perspective. Design/methodology/approach The views of Malaysian players (Bank Negara Malaysia officers, three Malaysian banks’ officers, Alipay-Malaysia officers, airport section manager, convenience store manager and airport store sales executive) were sought via qualitative interview concerning Alipay’s entry into the Malaysian market. Respondents who had relevant knowledge and/or were involved in Alipay m-payment technology development in Malaysia were contacted, while there remainder were obtained by snowballing. Secondary data was collected from Bank Negara Malaysia’s policy, three Malaysian banks’ reports, the Alipay-Malaysia public statements and the Airpor...

Alipay entered Malaysia: a closer look at the new market entry strategy driven by Chinese tourists [2020]

Chew, B.C., Shen, X. and Ansell, J. (2020), "Alipay entered Malaysia: a closer look at the new market entry strategy driven by Chinese tourists", Qualitative Research in Financial Markets, Vol. 12 No. 4, pp. 561-577. https://doi.org/10.1108/QRFM-06-2019-0069

Purpose-This study aims to investigate the entrance of Chinese-based Alipay's mobile-payment (m-payment) technology into Malaysia. Malaysia allowed this entry of the first foreign m-payment company because it would allow Chinese tourists spending while they are visiting Malaysia. It will view this entrance from a Malaysian perspective. Design/methodology/approach-The views of Malaysian players (Bank Negara Malaysia officers, three Malaysian banks' officers, Alipay-Malaysia officers, airport section manager, convenience store manager and airport store sales executive) were sought via qualitative interview concerning Alipay's entry into the Malaysian market. Respondents who had relevant knowledge and/or were involved in Alipay m-payment technology development in Malaysia were contacted, while there remainder were obtained by snowballing. Secondary data was collected from Bank Negara Malaysia's policy, three Malaysian banks' reports, the Alipay-Malaysia public statements and the Airport and Convenience Store reports. Triangulation using primary and secondary data was used to safeguard the validity and reliability of the outcomes. Findings-The entry strategy used by Alipay was different from those reported in previous studies. The establishment of Alipay-Malaysia was the first element of the "mode of entry" gaining pioneer status in Malaysia. The next stage was gaining support from Bank Negara Malaysia-Malaysian Central Bank and three Malaysian banks (Maybank, Public Bank and CIMB) through collaborative ventures with Alipay-Malaysia Sdn. Bhd., leading to acceptance nationwide by local merchants. The key driver of acceptance being Chinese outbound tourists in Malaysia. Research limitations/implications-This case study was conducted during the early implementation of Alipay in Malaysia from 2015 until April 2019. During this period, there were challenges due to the lack of primary data. These were overcome by the support from the respondents and the secondary data. Practical implications-This study contributes to insights from a different entry strategy that used tourism as a leading force. This can give guidance to other m-payment service providers or other countries as m-payment technology recipient about "market entry strategy" and "modes of entry" following Alipay's approach. Originality/value-To date, no study has been conducted to investigate the nature of Alipay m-payment in Malaysia. This qualitative study has examined the new phenomenon regarding how Alipay entered the Malaysian market. Moreover, this study can also contribute new insights into the existing theory of "market entry strategy" in terms of Alipay's tourist-based approach.

Using E-Wallet for Business Process Development: Challenges and Prospects in Malaysia

Business Process Management Journal, 2021

Purpose: This study aims to explore the challenges and prospects of using e-wallets in Malaysia, and what it means for businesses and customers. Suggested here are strategies to leverage the strengths and opportunities as well as overcome the weaknesses and threats. Suggested here are strategies to leverage the strengths and opportunities as well as overcome the weaknesses and threats. Design/methodology/approach: This study analyses the e-wallet phenomenon using a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis to assess Malaysian business development. It is supported with findings from the literature and secondary data. The relevant secondary data were collected from Bank Negara Malaysia and the World Bank. Findings: This study shows that e-wallets in Malaysia have still not achieved their purpose but there is huge potential to do so. The SWOT analysis identified several strengths (e.g. financial incorporation, easy to access, protection and safety, simple for other accounts to connect to, product and consumer service management, quick to implement/administer), weaknesses (e.g. lack of infrastructure and the 'tapping' of devices already cornered by the mobile phone market, opportunities (e.g. eliminating fraud, better customer service, promotion/loyalty that can be built into customer experience) and threats (e.g. attacks from viruses, frequent inquiries whether multiple wallets can be used by clients, the concerns of reckless spending behaviour of the E-wallet users). Research implications: This study is crucial for assessing the current situation and the prospects of e-wallets in Malaysia. This study also offers significant insights for policymakers and e-wallet service providers to develop appropriate strategies to enhance e-wallet services in Malaysia. Originality/value: This paper is the first of its kind to integrate a SWOT analysis and the rapid development of the e-wallet market in Malaysia. Hence, the findings could broaden our knowledge on the fintech industry and enable firms to participate in the e-wallet market.

The European Proceedings of Social and Behavioural Sciences, 2020

This is an Open Access article distributed under the terms of the Creative Commons Attribution-Noncommercial 4.0 Unported License, permitting all non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.

Investment Instruments in Malaysia

Özgür Yayınları eBooks, 2022

Using E-Wallet in Collecting and Distributing Zakat in Malaysia

International Journal of Business and Technology Management

Fintech, or financial technology, seeks to supplement conventional financial techniques in the provision of financial services and improve financial operations through the use of technology. The development of fintech has had a significant positive impact on social activities in addition to financial services. The administration of zakat has advanced to a new level of innovation in zakat collecting and distribution through the use of e-Wallets as one of the fintech channels. This dynamism has helped to partially resolve a long-standing issue with the zakat administration related to openness, accountability, and efficiency in zakat collection and distribution. E-Wallets are thought to have the ability to address these problems. The purpose of the study was to examine the available choices and the most common kind of e-Wallet related to zakat activities that are currently accessible on the market. Therefore, it is necessary to provide answers to queries such as the selections of e-Wal...

Case Studies on Innovations in Islamic Finance

United Nations Development Programme (UNDP) & Islamic Development Bank (IsDB), 2023

This report covers selected case studies in the Islamic finance and social finance ecosystem in Malaysia and Indonesia. These case studies document eco-building requirements and innovative solutions which were able to strengthen the two systems’ effectiveness, coverage and transparency – particularly in its integration with the digital economy. Development practitioners may find useful insights from the case studies featured in this report in developing their own strategies and action plans to suit their own needs, unique features, level of financial infrastructure and market readiness.

Analysis of Fintech Revolution in China and the UK: A Comparison of Ant Check Later and Zopa

International Journal of Business and Social Science, 2020

This study examines peer-to-peer lending in two platforms, Ant Check Later in China and Zopa in the United Kingdom. The objective is to analyze the two models of online credit to better understand their current status, analyze their development prospects and help individuals especially young people put into practice their entrepreneurial spirit. The methodologies used are literature analysis, qualitative comparison, and case analysis. It is by reading the relevant literature that a general impression of online credit is formed. By comparing online credit with traditional bank credit, we study the advantages of online credit and its barriers to development. The SWOT analysis of the two biggest companies in the online credit market helps us understand the differences between B2C and P2P models, realize the difference between domestic and international online credit markets, and recognize the online credit market development space, so that we can make online credit market predictions.

An Eco-Systematic View of Cross-Sector Fintech: The Case of Alibaba and Tencent

Sustainability, 2020

This paper explores the most recent Fintech (financial technology) phenomenon from an ecosystem perspective. Differentiated from the earlier Fintech evolution led by traditional financial institutions, “cross-sector” Fintech that operates at the intersection of financial services and information technology disrupts existing business models of banks while creating novel ecosystem dynamics. This study explores the Fintech ecosystem composition to understand better business model innovation based on underlying ecosystem dynamics while focusing on the specific role of cross-sector actors. These actors have escaped scrutiny despite being mature and experienced and having strong resource bases. Adopting a comparative case study method by considering the China-based Alibaba Group and Tencent, the study’s findings indicate that novel business model developments based on strong technological expertise and scale-based resources by cross-sector Fintech render a functional perspective on fast-d...

Convergence of Islamic & Sustainable Finance, 2019

The 13th annual public lecture and workshop on Islamic finance took place under the auspices of the Centre of Islamic and Middle Eastern Law (CIMEL) at SOAS University of London from 13-14 February 2018. The SOAS-QFC public lecture and workshop allow a select group of around 30-40 leading shari’ah scholars, economists, legal practitioners, bankers and academics to gather together for a day long closed-door discussion on an important contemporary theme within the field of Islamic finance. The workshop and public lecture are unique events with almost no parallel in the Islamic finance industry. The workshop, in particular, is designed to discuss in the most rigorous fashion a contemporary topic, which participants choose by poll. Because the workshop is not open to the general public and adheres to Chatham House rules, which means that the information of the workshop may be reported but the source of the information may not be explicitly or implicitly identified, discussion is critical and without social or industry constraint. The public lecture is given by an esteemed practitioner in the Islamic finance industry. It addresses a particularly important topic which is related to the principal workshop theme. The reports included in this publication are derived from these events. They represent some of the most advanced thinking on the topic in the Islamic Finance Industry.