The Razer Pay e-wallet and the Razer card have been discontinued in both Malaysia and Singapore, and these services will stop after September 30, 2021.
All Razer Pay e-wallet features will also be suspended after August 31, 2021, so users will no longer be able to top up, pay or transfer the app and will not be accessible from October 1, 2021. 2021. Razer Pay has had one 3-year beta in Malaysia since its launch in July 2018, with the mark of being the “e-portfolio for young people and millennials”.
But, as we now know, it didn’t quite take off with the Malaysian target group, especially with the red sea of e-wallet competitors it faced here. We took a look at 5 possible factors behind your stay here.
1. An electronic portfolio in the lifestyle category that does not meet enough needs
For starters, there are many type of e-wallets in Malaysia and Razer Pay falls into the category of lifestyle e-wallets, which is probably the largest category. There, it faced strong competitors such as Boost, GrabPay and Touch ‘n Go eWallet, to name a few.
But compared to them, he had no features to help him stand out in the category. With the big 3, you can find additional features such as investments, insurance deals, home services, travel deals, parking payments and more.
Razer Pay had ambitions to offer similar experiences, of course. When is first released, had shared plans to want to include more health and travel partners in its list of traders. Unfortunately, the decision to withdraw from the competition came before this plan came to fruition.
GrabPay, Boost and Touch ‘n Go eWallet were launched sometime from 2017 to 2018, around the same time as the launch of Razer Pay, but obviously the latter was left behind due to the disparity between its developments and those of others.
2. Promotional offers in less popular use categories
As of the third quarter of 2020, the most popular use of e-wallets among Malaysians is F&B, which is in 24% majority among other categories of use such as groceries, convenience stores, food delivery, payment of bills, etc. It is reasonable to assume that it was a dominant category from the beginning.
Still, Razer Pay didn’t focus at all. Their promotions and return offers were in place oriented towards bill payments, gaming equipment, and mostly for convenience stores like 7-Eleven. This meant that with so many other more versatile e-wallets, there were few incentives to download and use Razer Pay just for these deals.
3. Other e-wallets offer better deals from the merchants themselves
While Razer Pay got alliances with some big brands like 7-Eleven, Tealive, Starbucks, 99 Speedmart, Secret Recipe, etc., other e-wallets didn’t lose collaboration with them either. It remains an extremely competitive landscape.
But despite these partnerships, Razer Pay was unable to highlight its promotions. The rest of the e-wallets ended up having more attractive deals with these partners.
For example, Razer Pay offered 8-10% discounts to 7-Eleven and Starbucks earlier this year. However, Touch ‘n Go eWallet now offers a 20% cash back or a random return of RM500 for selected recipients for 7-Eleven, and GrabPay occasionally has 30-50% discounts for various delivery merchants. foods, including Starbucks. Plus, Starbucks has even more discounts for several things on its GrabFood merchant page.
4. It did not take good advantage of the e-commerce trend
In addition, many of Razer Pay’s merchants were offline stores with weaker e-commerce efforts. This was not the best move, given the pandemic and the rise of e-commerce later.
For an example of an e-wallet that takes advantage of changing trends correctly, we can see the eWallet Touch ‘n Go, which has many promotions for Zalora and Lazada. Taking advantage of platforms that people are already actively using is a strategic and meaningful move.
5. His e-wallet niche was unsustainable
All popular e-wallets have a specialized area to help you stand out in the saturated market (GrabPay with food delivery, Touch’n Go eWallet for toll top-ups and parking), and more.
On the other hand, Razer Pay not only had a mediocre lifestyle offering, but its highlight was an easy payment method for game-related purchases. Therefore, it is likely that hardcore gamers were some of his first adopters.
The downside to this is that not even players make these purchases every day, and it’s too high a target market niche to sustainably rely on an e-wallet.
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We are not saying electronic wallets have have all the above functions in order to be considered an electronic life portfolio. But if this is where an e-wallet tries to position itself, it’s best to be prepared to do it better than your competitors.
Users have limited attention span and (sometimes) limited space on their devices; they will only choose to keep the most useful options.
Ultimately, Razer Pay did not have the advantages of being the first or the best, it was too slow to catch up with its competition and did not drive adoption in the right way.
One way Razer Pay tried to drive adoption was through its support campaign for local SME traders during the pandemic. If new or existing users made a purchase with Razer Pay, they delivered a free surgical mask per day or per month.
It was an unattractive deal compared to cash returns, discounts and free deliveries, which other e-wallets offered in their SME support campaigns. In addition, the Razer Pay campaign only lasted a while without announcing new ones, while GrabPay and Boost have been regularly updating their incentives to encourage adoption and encourage users to buy from SMEs.
Despite this, Razer Fintech he still has a strong arm, a payment gateway Razer Merchant Services (RMS). In 2020, yes generated The total volume of payments (POS) of 4.3 billion US dollars, which represented an increase of 104.4% year-on-year, signaling the potential of its fintech technology companies, even if Razer Pay and Card did not leave the planned plan.
By now, Razer has shared that it will be focusing more on your B2B business (which includes RMS). Plus, Razer Fintech is looking at it zoom in its “Razer youth bank” in Malaysia. Li Meng, Razer’s director of strategy, found Malaysia’s large demographic group, which has more than 6 million young people, to be attractive, and believes that “the demographic segment of young people and millennials is among the worst-served countries in Malaysia. Malaysia “.
Editor’s note: Parts of this article have been edited to reflect greater accuracy of the claims.
- You can read more articles about Razer we’ve written here.
Featured Image Credit: Min Liang Tan, founder of Razer