KUALA LUMPUR (Aug 29): Online shopping in Malaysia is at the verge of an inflection point that will dramatically change the country's e-commerce scene, according to online payment solution provider iPay88 Sdn Bhd.

In a statement today, iPay88 executive director Chan Kok Long said the two key disruptive driver trends that support higher user confidence are as follows:

i) Technological-wise: New solution innovations that make funds immediately available i.e. Real-time personal banking or overdraft application, and direct conversion of token/reward points — that increases consumers' online purchasing power.
ii) Behavioural-wise: Online shopping patterns towards higher value items such as automobile, property and professional services.

Of the technological-based driver, iPay88 was currently working with selected partner banks to approve personal loans for online purchase, according to Chan.

"We are emulating what Alibaba has been doing since mid-2015, to offer their customers financial loans based on their online shopping history," he said.

Riding on this, business savvy eMerchants are starting to offer 'trial session' opportunities for higher value products in effort to lock in more online orders of greater value, according to him.

"Tesla (cars) are now being purchased online. Most car buyers only visit the dealership after they already know which vehicle they desire — the exact specifications, how much deposit they need to pay, or simply to test drive the vehicle.

"This simply makes it easier for eMerchants offering ready loans to quickly lock in sale of high value products," he said.

Chan said iPay88 systems has recorded that users have started to pay booking fees and down payments for purchase of vehicles and properties via online channels.

Over the same period in 2015, the volume of payment for automobile and property related transactions have increased by 53% and 39% respectively in 2016, he added.