Online payment solutions provider iPay99 Holding Sdn Bhd introduced the Virtual Account payment solution to serve communities in Malaysia that do not have bank accounts.
According to Bank Negara, 8% of Malaysia’s adult population do not own a bank account or credit card and need to go outside the banking system to meet their financial needs. This “underbanked” community represents a gap in the nation’s aspirations towards becoming a cashless society, said Chan Kok Long, executive director, iPay88.
“We cannot talk about achieving a ‘cashless society’ when there are still pockets of people who do not even have banking accounts, what more online banking or credit cards to enable online purchases,” he said.
iPay88’s Virtual Account solution is intended to serve this segment. It is a simplified online payment application that enables users who do not have any banking account, online banking access or credit to still perform online transactions.
To make online payments, the user selects “Virtual Account” on the payment page and receive a 14-digit virtual bank account number. The user then uses this number to deposit the cash payment at any bank branch or ATM nationwide to complete the transaction.
iPay88’s solution will handle the backend banking-payment transaction validation, confirmation of the merchant’s bank and ATM receiving the customer’s cash deposit.
“The Virtual Account solution is equipped with proven fraud prevention and monitoring systems that safeguard all transactions. Shoppers can use it without fear of fraud,” said Chan.