UOB Malaysia and Fasspay collaborate to provide contactless payment solution for J&T Express at last-mile deliveries
First tap-on-phone payment acceptance system transforms smartphones into POS terminals for a logistics player, aims to impact over seven million monthly deliveries nationwide
Kuala Lumpur, Malaysia, 25 March 2024 – UOB Malaysia and Fass Payment Solutions (Fasspay)1today announced a strategic collaboration aimed at providing J&T Express riders with the convenience of using their smartphones as point-of-sale (POS) terminals to accept contactless debit card payments during last-mile deliveries.
The partnership introduces the first tap-on-phone payment acceptance system for a logistics industry player in Malaysia through Fasstap™, a cutting-edge solution that transforms any near field communication (NFC)-enabled device that runs on Android and Harmony OS operating systems into POS terminals. Currently, J&T Express processes close to seven million cash-on-delivery (COD) transactions valued at approximately RM200 million monthly. This digital payment system presents a timely and more convenient alternative to the traditional cash-based model and streamlines the payment process for increased efficiency.
Under the partnership, UOB Malaysia acts as the settlement bank to facilitate the flow of funds between parties through Fasspay's in-house developed app, Fasstap™. J&T Express riders can now accept payments directly on their smartphones with a simple tap from customers' debit cards, streamlining the payment process and enhancing the overall delivery experience. Payments are instantly credited to J&T Express' UOB account, with riders receiving immediate credit notifications upon successful transactions.
Mr Lucas Chew, Executive Director and Country Head of Transaction Banking, UOB Malaysia, said, “UOB’s commitment to driving digital innovation and facilitating business growth within ASEAN and beyond is what drives such first-in-market payment solutions. This collaboration and cash management solution customised to the needs of J&T Express and Fasspay not only provides convenience to J&T Express’ customers, but also address the key pain point in the logistics industry. We look forward to working with other clients to develop new payment and cash management methods.”
Mr. Chris Leong, Chief Strategy Officer of Soft Space and Chief Executive Officer of Fasspay, commented, "Recent studies show2 that seven out of ten Malaysian consumers are now actively using contactless cards. We want to further empower this trend by increasing the number of contactless payment points, especially in previously cost-ineffective areas. Our goal is to eliminate the costs and risks associated with cash handling, which could lead to significant savings for the last mile cash on parcel delivery segment, and also enable J&T Express to efficiently secure the funds immediately after payment is made.
"We are delighted that with Fasstap™, drivers can use their own phones to accept contactless payments. We are proud to collaborate with dynamic partners like J&T Express and UOB Malaysia to fulfil the vision of improving the logistic cashless ecosystem together, starting from Malaysia and expanding to ASEAN in the future."
Mr Vincent Low, Assistant Chief Executive Officer of J&T Express, said, “As a result of this collaboration between us, UOB Malaysia and Fasspay, we have the honour to be the first courier company to launch the cashless payment solution in Malaysia. This initiative will not only enhance operational efficiency but also promote environmental sustainability.
The cashless payment solution offers our customers greater flexibility and convenience, aligning with the fast-paced lifestyle of today. With just a few taps on their smartphones, customers can now make payments seamlessly, saving valuable time and effort.”
Both Fasspay and J&T Express are long-standing cash management clients of UOB Malaysia. Apart from providing a contactless payment solution, the Bank is also working with Fasspay to empower J&T Express riders nationwide with the convenience and flexibility of receiving payments via DuitNow QR on their Fasstap™-enabled devices in the future.
1Fass Payment Solutions Sdn Bhd (Fasspay) is a wholly-owned subsidiary of Soft Space Sdn Bhd (Soft Space) that acts as a merchant acquiring arm for partner banks. Fasspay is also a non-bank e-money issuer regulated by Bank Negara Malaysia and a Visa Ready BIN Sponsor. Additionally, Fasspay provides white label e-wallets and Visa prepaid cards as a value-add to their existing business solutions.
22022 Visa Consumer Payment Attitudes (CPA) Study, conducted by Visa