E-wallet service provider Boost has released some data that point to economic recovery, with Malaysians showing increasing support for micro, small, and medium enterprises (MSMEs). The data also indicated a growing acceptance for a digital lifestyle and contactless payments among businesses and the public.
In a statement, Boost revealed that there has been a 100% surge in the total gross transactional value (GTV) in August 2020 compared to December 2019. The total monthly GTV also showed a 77% increase between April and August 2020. This growth is further complemented by an 85% spike in purchases made with MSME merchants in July 2020 compared to April 2020. Put together, these data suggest that not only are Boost users spending more; they are also more supportive of local businesses post-MCO.
“While MSMEs have been hailed by as the backbone of the economy, it takes consumer spending to spur economic recovery. Collectively, Malaysian businesses and consumers have the power to impact the economy positively, and Malaysians understand this,” said the chief executive officer of Boost, Mohd Khairil Abdullah.
Khairil further said that Boost merchants from the small and micro business segment have performed better at maintaining earnings compared to larger enterprises during the downturn. “This shows that Malaysians are aware of the impact of their purchasing power and naturally shifted towards supporting MSMEs by shopping and dining locally, and still continue to do so,” he said, adding that the total user spend on Boost during the conditional MCO period had returned to pre-MCO levels.
Boost also commented that the public support for MSMEs has grown because these businesses have taken the opportunity during this period to digitise themselves, such as adopting e-wallets as a safe and convenient payment option. It helps as well that Malaysian consumers have grown more comfortable with contactless payments. This trend is reflected in the growing popularity of the Boost Payment Link, which saw a 21-fold increase in transactions since its launch at the start of the MCO. The Boost Payment Link is a contactless payment solution developed for businesses, allowing them to collect payments via email, SMS, or WhatsApp.
Finally, Boost said that it is well-positioned to bring merchants and users together on one platform, letting both parties fulfil their business and lifestyle needs in a sustainable manner. At present, Boost has 8.5 million users.