The China based payments company Ant Financial, which belong to AliPay had start to acquire digital wallet in South East Asia by joint venture with the local digital wallet.
- Touch’n Go eWallet in Malaysia
- eMoneky in Vietnam
- DANA in Indonesia
- GCash in Philippine
- Kakaopay in Korea
- and more
So how Ant Financial able develop digital wallet to a local market in a short period? Of course they are not build the system from scratch, instead they have a set of standard systems that able suit in different environment.
First they will joint venture with a local digital wallet company and build the system together, this is because a local company already have a base user and also most important they know the local business culture. For example, Touch’n Go in Malaysia have a huge base of user, and it dominate the local transport toll system. All the local have to use the ewallet for transport payment.
Second, the technology. Since Ant Financial is not build from scratch, they have a set of systems to integrate with the local existing system. In Ant Financial perspective, an ewallet most important divide to few components:
- payment, able make payment
- reload, able reload
- risk, for anti money laundering
- promotion, provide promotion
- settlement, generate settlement for merchant
Local system will remain maintenance the user base information, and it is not easy migrate to Ant Financial, so they provide some core functionality to the local company. To integrate these core function, both party just have create an system that work as glue code for both side.
By refer the above diagram, the local company will just need to make an payment to the glue code system, and ant financial will perform logic behind.
For example generate settlement, risk checking, create order etc. And return the payment result back to the local company for deduct money. So this is so easy for the local company, they just have to send a request to Ant Financial, and Ant’s will help them with all steps in behind.
These two are the main reason why Ant Financial can be so success by joining Join Venture with the local digital wallet company.
