There has been extensive news lately with financial service providers and start-ups entering into the mobile payment platform, with Bank Negara already estimated approving 26 such service. The move towards cashless is picking up traction with Grab Malaysia now announcing their intent to launch the service early next year after receiving the green light from the central bank.

GrabPay e-money is scheduled to debut in stages next year via the Grab app already being used by many consumers to hail a ride at the moment. Moving away from cash is the objective, according to Bank Negara statistics, managing cash cost the banking industry RM1.8 billion and the move towards electronic based payments may result in savings to up to 1% of a country’s economy. In addition, Malaysia is poised to rapidly move towards a digital-first economy with policies in place such as the Malaysian Financial Sector Blueprint 2011-2020 which aims to increase the number of electronic payments per capita to 200 by 2020.

Uber has just announced its foray into mobile wallet in Vietnam, working with a large digital financial service provider is looking to expand offering in Southeast Asia in due time. Both ride hailing providers are racing to conquer the region and become the defacto app for rides, delivery and now payment. Concerns of these rapid expansion include security and data privacy, which is increasing in an alarming rate. Bank Negara should place strict guidelines for data collection and how they are being used by these new economy businesses.