Posts Tagged ‘SoftSpace’

MOL at the center of online & offline payments

There’s a chance that Malaysian payments will get shook up. From an online perspective, you’ve got the former nbepay becoming MOLPay. From an offline perspective, you’ve got a joint venture between softspace and MOL to form MOLCube (e27 cover it too). The center of all of this is MOL.

For me, I’ve been waiting for a softspace device for quite a few months. I was excited since April 2012. I was told a device would be coming my way from 18 June 2012, and never heard back; the presumption is that people are using this device according to their website. But it is not available for the “general population”.

I have never met Ganesh Kumar Bangah, the man behind MOL, but being a young CEO, I figure he’s got the chops & energy to pave the way. Besides, he’s backed by Berjaya tycoon Vincent Tan.

Ugliness begone, let there be better online & offline payments and this will pave the way for e-commerce as well as physical versions of e-commerce (pop-up stores, bazaars, heck, imagine your pasar malam vendor going online).

A lot of this will involve lobbying Bank Negara Malaysia (BNM). I don’t believe any payment gateway intentionally wants to provide terrible user experience, I believe its usually to feed regulatory requirements.

Looking forward to payments in 2013. It can only be better than today.

Square-like payment devices in Asia

Ever since I heard about Square, I was impressed. I was wowed when they used Square to accept payments at WordCampSF 2010 (May 2010). It all just felt right. Swipe the card, email the receipt. The experience felt like making a purchase at an Apple Store with their handheld point-of-sale systems. Square sadly never made it out of the USA and there were rumours that VeriFone and others were going to do similar things. Naysayers claimed security problems (square is magnetic stripe based, rather than chip-based last I used it). Alas, its 2012 and I’ve still not seen anything usable.

So it pleases me to see Swiff in Singapore and the fact that PayPal Here (product page) will also launch in Singapore. Malaysia seems to have SoftSpace. However its April 2012 now and the first reliably available service is Swiff.

Square is upfront with their costs – it basically takes 2.75% of the transaction. That’s considerably higher than the 1.8% charged by Malaysian banks. However it takes away the burden of renting a terminal which can set you back RM130-150/month, with the only option of a refund on that exceeding RM10,000 of transactions per month. And the chances that the terminal accepts “everything” tends to be slim (its usually just Visa/MasterCard). Swiff lacks fixed rates at the moment, and SoftSpace claims to be inundated with queries (but will support more security and have a chip reader).

PayPal might crack this though. They have experience with dealing with banks and banking regulations (Malaysia famously has BAFIA as law). Many tech-savvy people already tend to have a PayPal account (and if they don’t, maybe they’ll start one). They’ve also gone out with a flat 2.7% transaction fee.

I’m looking forward to more competition in this space. It can only lead to lower rates. And with bazaars, conferences, etc. this sort of thing can be very useful.