Posts Tagged ‘payments’

Now a GrabPay user, the promo will lead to inflated metrics

There are so many e-wallets in Malaysia now, it sure feels like I’ve got e-wallet fatigue and I don’t even spend much time in KL or use most of these wallets. I am more a fan of the AMEX, followed by Visa or MasterCard. Eventually e-wallets are going to have to implement merchant fees that seem closer to these credit card networks (your rewards have to be paid somehow…).

I have tried GrabPay before in Singapore where I loaded SGD$20 into my wallet from my credit card. I never did get to spend it. This balance sticks around for when I am next in Singapore. You have a separate e-wallet for Malaysia. I tried to set this up a few days ago, and they require a photo of your passport or IC to verify your ID (unlike Singapore). I seem to have failed this verification (it looks like an actual human does it, but when you fail it, they don’t tell you why; not that it matters, it seems you can still use it just fine). Also, Grab is now holding photos of the front of Malaysian’s Identity Cards… let’s hope they never have a data breach.

Today as I was trying to get a ride, a pop-up (potentially the first useful ad I’ve seen in the adware that is Grab…) said I could get RM5 off 2 Grab rides if I use GrabPay credits. So I promptly topped up my GrabPay wallet with RM20 (which came from my credit card), and then paid for a ride with GrabPay credits.

I see absolutely no difference with paying via a credit card. I believe you can use your debit card to pay for your Grab rides as well. There is an argument that cards are unpopular in South East Asia as evidenced by this Twitter thread, but if you have a bank account in Malaysia, you get a debit card by default that you can use for Grab. Maybe the play is that people will use it for peer-to-peer payments, like when you need to pay a friend for splitting the bill (like Venmo? Maybe I have a generation gap)?

However from a metrics standpoint, my desire to save RM5 off two rides (a total of RM10), has made me an active user of GrabPay. I loaded up a balance of RM20. Will I be able to bring that balance to zero or does Grab earn interest on my money (like they do for my Singaporean balance)? Will future promotions only apply to GrabPay payments that aren’t via credit card, but via this e-wallet service?

Yes, we Malaysians, and Singaporeans and probably most South East Asians love a good deal. One of the reasons that Grab probably won before Uber exited the South East Asian market was GrabRewards. If you could expense your Grab rides, participate in the loyalty program, and naturally keep the rebates, why would you ever use Uber?

Measure what matters. Anyway, back to e-wallets. The banks will wake up. The VC money will run out. Economics will eventually meet reality.

Generation Gap: Venmo

Last week I was having dinner in NYC. We were a table of four, and the table next to us, in cramped eating conditions in Koreatown, were two girls whom were in their twenties.

When it was time to get the cheque, we split the bill using cash and card. When it was time for the table next to us to pay the bill? One paid it, and the other said “OK, how much do I have to Venmo you now?”

Generation gap! I don’t even have Venmo. It was also timely to read this New Yorker piece, The Venmo Request: A New Wrinkle In Modern Dating, which apparently suggests that this is also becoming prevalent when it comes to dating! Choice quote: “A guy who seeks recourse through Venmo the morning after is a guy who doesn’t think he got his money’s worth the night before.”

I’m all for going cashless and splitting bills using something like Venmo. That was in effect the promise of the PayPal mobile app. My friends and I still end up using cash, and if its a bigger road trip, bank transfers. It seems that Venmo is currently USA only, but considering Braintree acquired Venmo in 2012, and PayPal got Braintree in 2013, its kind of a shame that its 2016 and they’ve not branched out of the USA.

Taxi prefers Square over regular credit card terminal

As I was getting from the airport to my hotel in Columbus, Ohio, I took a taxi. Upon disembarking, it was time to pay and I noticed a credit card device hanging at the back of the passenger seat (this seems to be more common in the USA these days thankfully). 

However, the driver told me not to swipe it there. He’d prefer to use Square as he would save on fees. So he plugged the Square dongle into his phone, swiped my card, I gave him his tip via the app, signed virtually, and the receipt automatically arrived via email.

A much better workflow for me (since I don’t have to deal with a paper receipt). But it got me thinking. Square charges a 2.75% fee up-front. This is by no means cheap. However it does guarantee the money in your bank account within a day or two.

I’m willing to bet that the device tethered to his cab might charge less (or close to equivalent?), but pay-out over a longer period of time. For whomever installed that device, they’re going to presume that no one uses the credit card terminal. This is the bonus of competition — the consumer isn’t affected (arguably, the consumer experience improved — it wasn’t too long ago that all taxis were cash-only affairs) and the driver wins.


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