The uncertain future of TNG Digital in a digital banking era

TNG Digital, the company behind one of Malaysia’s largest wallets, Touch ’n Go eWallet, has forfeited the opportunity to apply for a digital bank licence in the country. This may complicate its monetisation strategies and eventually slow down its journey towards profitability

A household name in Malaysia, e-payments firm TNG Group ventured into e-wallets with China’s Ant Financial in 2017 by launching Touch ‘n Go eWallet

In just four years, the e-wallet has grown to become one of Malaysia’s largest, with over 15.5 million registered users. Covid provided a boost, too

Contrary to expectations, TNG Digital, the operator of the e-wallet, didn’t participate in Malaysia’s digital banking race, unlike its competitors

Where does this leave TNG Digital? Without a digital bank licence, will its path to profitability be hampered significantly?

Mention “Touch ‘n Go” in Malaysia and chances are most people will know what you’re talking about.

The name is associated with two ubiquitous products in the country. One is the Touch ’n Go electronic prepaid card, which is used to pay for public transport, tolls, parking, and even retail shopping. Some may even call it the country’s first real fintech product—introduced in 1997. There are over 20 million active Touch ’n Go cards in circulation.

And then, there’s the Touch ’n Go eWallet, which has become one of Malaysia’s largest wallets in just four years.

AUTHOR

Ka Kay Lum

Based in Kuala Lumpur, Ka Kay covers investment activities, aka following the money, across Southeast Asia and in-depth stories on the often-overlooked Malaysian startup ecosystem. She was previously a regional writer for Nikkei-owned DealStreetAsia.

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