Singapore – Mastercard has recently introduced Mastercard Pay Local, a global service that makes it easy for consumers to make card payments to merchants using local digital wallets. With Mastercard Pay Local, resident cardholders or international travelers can easily link their credit or debit cards to a digital wallet and immediately shop at participating merchants, without needing to set up or top up a prepaid account.

With this, residents can pay the micro, small and medium enterprises (MSMEs) that do not accept traditional card payments through digital wallets, while tourists and international travelers can enjoy convenient, seamless payments across the destinations they’re visiting.

Moreover, hundreds of millions of MSMEs can experience increased reach with minimal infrastructure investment or disruptions to their operations.

Lastly, wallet operators can extend their customer base by attracting individuals who primarily use cards, providing a smooth consumer experience and achieving quicker time to market. Card issuers can also deliver more points of acceptance for the consumers they serve.

Leading wallets in Asia-Pacific, such as DANA in Indonesia, Touch ‘n Go in Malaysia, Bakong in Cambodia, and LankaPay in Sri Lanka, will use Mastercard Pay Local to facilitate payments for consumers at more than 35 million merchants in the region that accept these wallets. 

Beyond Asia-Pacific, the service is also geared towards regions where digital wallets are widely used for everyday purchases, such as Latin America, Eastern Europe, and the Middle East and Africa.

Sandeep Malhotra, executive vice president, products & innovation for Asia-Pacific at Mastercard, said, “With Pay Local, Mastercard is extending its global network to partner wallets and expanding acceptance by making it possible for Asia’s digital wallets to process card-based payments. This creates a low-cost, simple, stable, and secure connection between over 35 million merchants in Asia Pacific and two billion Mastercard cardholders.”

He added, “Locals benefit from new payment options while tourists can use their cards as they do at home, making travel infinitely easier, with one less thing to worry about while on the road.”

Pay Local builds upon Mastercard’s existing collaborations with leading wallet providers, including Alipay and Weixin Pay in the Chinese Mainland and Octopus in Hong Kong SAR, to offer a convenient way for international visitors to pay like locals when traveling to these locations, regardless of where in the world their Mastercard card was issued.

In addition, a range of digital wallets across the region already accept Mastercard cards for funding, enabling easy payments at merchant locations that accept these wallets, including GrabPay in Southeast Asia, Maya in the Philippines, ShopBack in Singapore, and TrueMoney in Thailand.

Darrick Rochili, chief innovation officer at DANA, commented, “At DANA, we are committed to enhancing the accessibility and convenience of digital payments for all users. By collaborating with Mastercard, we are excited to offer international travelers a seamless way to register and bind their cards to DANA, furthering our mission of bridging financial inclusion across borders. This collaboration reflects our dedication to improving user experience and supporting global financial mobility as we anticipate increased international travel.”

Meanwhile, Alan Ni, CEO at TNG Digital, stated, “As Malaysia’s leading digital wallet and financial services provider, we are proud to have expanded our services beyond national borders, enabling users to travel cashless and make seamless payments internationally. Our collaboration with Mastercard underscores the strength of our open platform strategy, allowing us to extend cashless payment solutions to international travelers visiting Malaysia, contributing to the country’s tourism industry and economy. We are pleased to offer inbound tourists the convenience of cashless transactions via QR payment at over 2 million merchants, retail outlets, and service providers across Malaysia.”

In the ever-evolving landscape of businesses, where products and services vie for consumer attention, one strategic principle stands out as a beacon of success — the customer-centric customer experience (CX) approach. As businesses navigate the intricate tapestry of the market, those who prioritise understanding, anticipating, and fulfilling the needs of their customers emerge not only as survivors but as industry leaders.

In this era of heightened competition and discerning consumers, the significance of a customer-centric CX approach cannot be overstated. It transcends mere customer service; it is a holistic strategy that permeates every facet of an organisation, from product development to marketing and beyond. 

Despite all of these efforts, the prime point of concern for businesses is to know what strategies they must implement to foster greater customer engagement.

To answer this question, several industry leaders have sat down to discuss these CX trends, strategies, and advice during the recent What’s NEXT 2023: Marketing in Malaysia hybrid conference held at the Sheraton Kuala Lumpur on December 5, 2023.

The panel discussion, featuring Chin Wee Ko, manager and principal solution consultant for Southeast Asia at Adobe; Cynthia Tang Hwee Jing, head of customer experience at Sunway Malls; Su Ling Tan, head of customer experience and services at Touch ‘n Go Group; with Umar Saibukandu, head of marketing automation, acquisitions and analytics at ADA Asia serving as moderator, explores industry discussion on how can brands focus on a more customer-centric CX approach, as well as proactively engaging with consumers through conversational and omnichannel strategies.

More than just analytics: how brands should strive for a customer-centric CX approach

When asked what main strategy brands should focus on in terms of a customer centric CX approach, Adobe’s Chin Wee Ko said brands should have a data marketing approach, and should implement a mix of great ‘art and science’ strategy. In this context, art refers to the content being used and science refers to analytics, more specifically marketing analytics–and not necessarily web or mobile analytics.

With understanding the anonymous customers a brand has, Wee Ko goes on to say that brands should look into their product analytics by defining the artificial distinction between pure marketing and actual product selling. After all, the end goal for brands is that their marketing strategies will be successful through customers availing the brand’s products or services.

He also points out that with third-party cookies going away soon, brands should be more prepared to implement strategies that utilise zero-party data and first-party data.

“First and foremost, it’s important to incentivise customers [and] look into solutions where you can easily create adaptable forms [as well as] carrying out A/B tests, which is something brands are not doing out there most of the time,” he said.

By systematically testing variations, businesses gain a data-driven understanding of what resonates most with their audience. A/B testing empowers organisations to make informed decisions, optimise customer journeys, and stay agile in a competitive landscape. It is also worth mentioning that Wee Ko also advised brands to tap into more durable ID formats by adapting customer data platforms (CDPs), allowing brands to unify customers’ insights using transactional experience data and behavioural data across online and offline channels.

Meanwhile, when Sunway Mall’s Cynthia Tang was asked what specific CX strategies the brand should implement, she said that this depends on whether a brand would want a low-tech or high-tech CX implementation, as well as depending on which brand initiative garners the most attention amongst consumers and whether a brand has ample budget to execute such type of strategy.

“When it comes to customer care, we do use the voice of the customer first [and] understanding what the customer is going through, what is the pain point, and [then] we solve the journey to make it more frictionless,” she explained.

Tang also echoed Wee Ko’s statement on having a data-driven marketing approach, adding that, “When we use the data, we want to reach out the right communication to the right audience. Instead of using the ‘spray and paint’ method, we want actually to go straight to the customers, where the information is relevant to them.”

For Touch ‘n Go Group’s Su Ling Tan, one of the best ways to implement successful CX strategies is to have its C-level members on ground to know the customer pain points as soon as possible. One thing that she also pointed out is the importance of having a CX council, where various team members from the company are involved in creating effective CX strategies.

“In this council, we have a shared KPI that we manage according to customers’ experience, and we also have relatable metrics that help the organisation to move forward to a better stage in terms of our customer experience [strategy]. [What we] watch the customer go through in terms of difficulty, we bring back to our [CX] council, discuss how we can improve it, and we go on a week-on-week improvement plan,” she stated.

Of conversational and omnichannel strategies: here’s how brands should implement customer-centric CX strategies

In terms of the conversational strategy, Tang said that Sunway Malls’ customer care team had recently implemented generative AI which helped them knock off a lot of customer tickets that needed to be resolved immediately.

“The higher value questions or interactions [are] flowed to the customer care team, who is actually handling the customers at the front line in the mall, and also the interactions where the customers inquire online. This increases productivity of them (the team) so that they can actually give better [customer] service to the shoppers,” she said.

Meanwhile, in terms of omnichannel strategies, Tang said that with so many available channels marketers and CX teams can tap into, it’s important to know if the funding and manpower is needed to have such a large presence online.

“There’s so many channels out there [and] instead of being present in every single channel, you also need to see [whether] your staff or manpower is able to cope with so many channels. No point of introducing more channels when your team can’t cope [with it] because at the end of the day, if a customer writes in at a channel where your team isn’t focusing on, then it becomes more frustrating for the customers and can be demotivating to the staff. [In short], each organisation should be channel-appropriate when it comes to implementation of omnichannel strategies,” she explained.

When asked what particular challenges brands may face in terms of implementing conversational and omnichannel strategies, Tan said that talent and expectations are the most common challenges, in the sense that many technologies–including generative AI–are a shock to the market and yet they are still uncommon for marketers to be used.

“With the technology that is new to the market, we will have expectations that [are in] our imagination [that we want] to achieve. If our talent are not able to bring that [output] to us, then that becomes a challenge for us,” she said.

Tan also added, “For example, if we want to implement a new technology or a new strategy–the first thing our bosses will ask is: What’s your cost? What’s your ROI? How long will you [wait] to get the return? So that’s the expectation that we need to manage in actuality. But we need to also know that ‘yes, that expectation is there’, and we want to improve but to improve for the better, what are the things that the customer experience can conceive or how much heat will be able to take.”

In terms of the future trends for these CX strategies, Wee Ko said that most of these would now need to involve generative AI. In this case, he took chatbots as an example that needs to be involved in this space.

“Conversational marketing really is a two-way street, where brands carry out dialogue to build a relationship with their customers. But in a digital world, that’s tough and there’s a lot of chatbots coming into the picture. However, if you look at the current market today, a lot of chatbots are rules-based chatbots [and] they just don’t cut it, especially with Gen Z where they want instant gratification,” he explained.

He goes on to explain that as brands begin to adapt GenAI-powered chatbots, they now can train these chatbots using large language models (LLMs) and the brand’s collaterals, allowing the responses to the customers to be brand-relevant. 

It is also worth noting that for omnichannel strategies, he encourages brands to build new omnichannel strategies to create a connected experience for their customers, given how much consumer behaviour has changed in a post-COVID world where connections matter, even when there’s an evident shift from physical to digital interaction. With the implementation of CDPs, he says that the brands will now be able to check out the related contact information and devices of a customer, and allowing brands to target their campaigns across a variety of channels.

Kuala Lumpur, Malaysia – TNG Digital, owner and operator of Touch ‘n Go eWallet, has raised RM750m from its latest equity funding, which will be used to expand its digital financial services.

The equity funding was made through an investment by the Lazada Group, as well as from its parent company Touch ‘n Go Group. This new investment solidifies the collaboration between key segment leaders, one in e-commerce and one in digital financial services and payments.

Effendy Shahul Hamid, group chief executive officer at Touch ‘n Go Group, said, “I’m extremely pleased to welcome Lazada to the Touch ‘n Go eWallet family. We feel this collaboration will bring next-level value propositions to users and merchant bases across the Lazada and Touch ‘n Go ecosystem. I look forward to seeing the teams roll out these exciting collaboration opportunities to our users.”

Meanwhile, Alan Chan, chief executive officer at Lazada Malaysia, commented, “We see digital payment services as a critical bolt-on to bring the best customer experience on Lazada. Lazada is fully committed to providing a seamless customer journey, as well as being a catalyst to stimulate capacity building among our sellers, primarily local SMEs and MSMEs.” 

He added, “Our long-standing partnership with Touch ‘n Go eWallet has served our customers well, allowing buyers to check out easily and quickly. Today’s announcement fortifies that partnership and we are excited by the prospects it presents for both our companies.”

Malaysia – Touch ‘n Go Group, via TNG Digital, owner and operator of Touch ‘n Go eWallet, together with AIA Malaysia, an insurance firm, has launched SafeTrip, a travel insurance plan for both domestic and international travel and covers travel inconveniences, medical expenses, personal accidents, and comes with extra COVID-19 protection. 

SafeTrip also gives international travelers an option to top-up their coverage for medical expenses related to Covid-19 to up to US$57,200 (RM250,000) in total, enabling them to satisfy the travel requirements of their destination country.

The company said SafeTrip costs just US$0.68 (RM3) per day for domestic trips and US$2.29 (RM10) per day for short trips in most Asian countries. Besides enjoying a rebate of up to 25% on their premiums for domestic plans and selected international destinations, Touch ‘n Go eWallet users will also receive an additional premium discount of 5% if they travel in a group of five and more.

Effendy Shahul Hamid, group chief executive officer (CEO) of Touch ‘n Go Group, said in celebration of the Hari Raya festival, the introduction of this second insurance product is timely as they expect to see more Malaysians making plans to make up for the lost time to reunite with their loved ones domestically and internationally. 

“SafeTrip is affordable and convenient to sign up for and it offers Touch ‘n Go, eWallet users, a rebate of up to 25% on domestic and international plans. Using technology and innovation effectively, we are excited to expand our services with AIA and offer this travel insurance to all our users,” Hamid said.

“We advise all users to ensure that they meet all travel requirements of their destination country to have a worry-free trip, as many countries mandate a certain amount of insurance coverage, especially on Covid-19 protection,” Hamid added.

Touch ‘n Go has been expanding its value-added services and has now included travel insurance as well, where users can buy this product directly from their Touch ‘n Go eWallet.

Users can select their travel destination, travel date, and the number of travelers to get a quotation instantly. Once payment is completed via the eWallet, users will be covered the moment their trip starts. 

Users can also submit a claim easier and faster as the entire process from claims submission to instant claims payout is performed online.

Ben Ng, CEO of AIA Bhd, commented, “Following the success of our first product collaboration, WalletSafe, the company is bringing yet another innovative and personalised solution to benefit Touch ‘n Go eWallet’s over 16 million users. SafeTrip could not have come at a more appropriate time as many are looking to resume travel plans with the reopening of borders.”

“We believe this product is set to provide our partner’s users with the much-needed peace of mind when they go on their trips, in line with AIA’s purpose of helping people live healthier, longer and better,” Ng adds. 

Since July 2021, TNG Digital and AIA had a long-term strategic partnership, paving the way for AIA to provide digital insurance solutions to users of Touch ‘n Go eWallet.