Aeon Wallet to be launched in August
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Aeon Credit Service (M) Bhd is targeting to launch its cashless payment service Aeon Wallet in August, which will become another core business segment for the group.
Aeon Credit, a subsidiary of Aeon Financial Service Co Ltd Japan, is principally engaged in consumer finance operations through provision of easy payment and hire purchase schemes for purchase of consumer durables and motor vehicles, personal financing schemes and issuance of credit cards.
Aeon Credit will be launching two new products in the current financial year ending Feb 28, 2019 (FY19), in line with the company’s digital initiatives, namely the Aeon Wallet and Aeon Member Plus Card that will provide customers with payment, privileges and benefit to complement the evolving customer lifestyle, attracting customers from all segments to go cashless.
Chief financial officer (CFO) Lee Kit Seong said the e-wallet will be another payment settlement tool for consumers in the market as it looks to first tap into its 6 million member base in the group and to have 1 million users for the e-wallet in a year.
“We’re also introducing the Aeon Member Plus Card to consolidate the loyalty programme of the Aeon group of companies in Malaysia. The e-wallet is one of the settlements like Touch ‘n Go, Alipay, and WeChat Pay. Our e-money will ultimately become mobile payment and Aeon Pay (a settlement medium like iPay88),” Lee said.
“After we expand internally, we will go externally. From e-money, we’re going to put it into a mobile wallet. We want to integrate the Aeon companies (such as Aeon, Aeon Big, Aeon Credit) in Malaysia to have one member (system). Once comfortable, we will go to the region,” added Lee.
“Our e-money will ultimately become mobile payment and Aeon Pay (a settlement medium like iPay88),” Lee said.”
Aeon Credit has doubled its capital expenditure (capex) to RM120 million for FY19, from RM60 million in FY18, to invest in its operations and business expansion. The capex will be utilised for its branch transformation and digital marketing initiatives, the upgrading of its system infrastructure and for the introduction of its e-money business.
Lee expects the company to maintain its momentum for FY19, with strong domestic demand being the key driver for growth, along with its transformation business model and continuous improvement in asset quality under the new MFRS9 environment.
Meanwhile, chairman Ng Eng Kiat has maintained that “it is not wrong” in relation to the additional assessments and penalties by the Inland Revenue Board totaling RM96.82 million.
“It’s an issue not just in relation to having to pay the tax. We’re taking the grounds that we’re not liable for those tax. We’re now appealing to the Special Commissioners of Income Tax,” said Ng, adding that it is also in consultation with tax agents, auditors and solicitors.
He said although IRB has raised an assessment and failure to pay by a certain time will result in penalties, winding up of the company or action against the board of directors, it has applied to the Court of Appeal against the High Court’s May decision to get a stay. The hearing has been deferred to July.
Questions & Answers
Q.What is the primary goal for Aeon Wallet's initial launch phase?
What is the primary goal for Aeon Wallet's initial launch phase?
Aeon Credit aims to initially target its existing 6 million member base for the Aeon Wallet, with a goal of attracting 1 million users within a year of launch.
Q.How has Aeon Credit's capital expenditure changed for the current financial year?
How has Aeon Credit's capital expenditure changed for the current financial year?
Aeon Credit has doubled its capital expenditure for FY19 to RM120 million, up from RM60 million in FY18. This investment supports operations and business expansion.
Q.What is the company's stance on the additional tax assessments from the Inland Revenue Board?
What is the company's stance on the additional tax assessments from the Inland Revenue Board?
The chairman maintains the company is not liable for the RM96.82 million in additional assessments and penalties. They are appealing the High Court's decision.
Q.How will Aeon Wallet compare to other existing payment methods once launched?
How will Aeon Wallet compare to other existing payment methods once launched?
The e-wallet will function as a payment settlement tool, similar to services like Touch 'n Go, Alipay, and WeChat Pay, with plans to evolve into a mobile payment system.