This article first appeared in The Edge Financial Daily on October 2, 2019

KUALA LUMPUR: Cashless payment solutions provider Revenue Group Bhd is confident of a further improvement in its performance for the current financial year ending June 30, 2020 (FY20), mainly driven by its growing transaction business.

“We have consistently delivered double-digit growth. If nothing goes wrong, we are looking at [another] double-digit growth [for FY20],” said Revenue Group managing director and group chief executive officer (CEO) Eddie Ng Chee Siong.

For FY19, the group’s net profit rose 27.21% to RM8.7 million, from RM6.84 million in FY18. The group's revenue jumped 67.86% to RM59.36 million from RM35.36 million.

Chee Siong was speaking to reporters yesterday after the launch of additional online shopping options by Revenue Group and TNG Digital Sdn Bhd for Touch ’n Go eWallet users to shop at Alibaba-owned Taobao and Tmall marketplaces.

He said the strategic collaboration with TNG Digital should enhance Revenue Group’s bottom line going forward and drive its electronic transaction processing segment, as it is set to gain from the electronic transaction processing fees.

“Nowadays, more and more Malaysian citizens are using the e-wallet, for a few reasons, mainly because the cash rebates are very attractive and the e-wallet is becoming one of the tools you need to use for the day-to-day transactions,” Chee Siong said.

“We initiated this [partnership] simply because we can address the refund issue. Compared to banking, where the refund process usually takes about two to three working days, Touch ’n Go eWallet can immediately process the refund to the consumers,” he added.

Revenue Group had prior to this entered into a partnership with another e-wallet player, Boost, which saw the number of transactions grow to 2,000 a day in less than a year.

In FY19, the electronic data capture terminals contributed to 58.49% of Revenue Group’s total revenue, followed by the electronic transaction processing segment (33.68%). The rest of the group's revenue came from the solutions and services business segment.

TNG Digital CEO Ignatius Ong said since the soft launch on Sept 9, some 1,000 transactions with a total value of about RM100,000 have been carried out on Taobao by Touch ’n Go eWallet users.

“With an official launch today (yesterday), I expect to see 10 times more growth [from the current transaction number], if not more,” Ong added.