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Three major payment providers in Asia have teamed up to enhance the protection of digital wallets, which are rapidly becoming the preferred choice among consumers for everyday transactions.
Under the Digital Wallet Guardian Partnership, Singapore-headquartered Ant International, AlipayHK which is Hong Kong’s most-used e-wallet, and Malaysia’s TNG eWallet will focus on three areas of collaboration:
The Asia-Pacific region leads the world in digital payment adoption, accounting for nearly two-thirds of global digital wallet spend at US$9.8 trillion, with the highest wallet penetration rates among all regions, Ant International says, citing a Deloitte report. Alipay+, the global e-wallet gateway by Ant International, has been promoting cross-border payment interoperability in the region, which is crucial in boosting digital payment adoption. Alipay+ now partners with 36 e-wallets and six national QR schemes, most of them from the region, connecting over 100 million merchants to 1.7 billion user accounts.
Given the high adoption rate of digital payments in Asia, 42% of global fraud cases also originate in the region. Digital wallets have become prime targets, with 15% of wallet accounts compromised in 2023 alone. Among different threats, account takeover frauds rose by 28%, making this a major concern among digital wallet users in Asia, according to crypto-focused media platform CoinLaw.
Compensation scheme
In the initial phase of the partnership, wallet partners are scheduled to adopt Alipay+ EasySafePay 360, an AI-powered account protection solution for both offline and online wallet transactions, to combat account takeovers. E-wallet operators can expect the solution to significantly lower the incidence of account takeovers, enhancing users’ trust in their service. During a trial deployment, EasySafePay demonstrated a 90% reduction in account takeover risk, Ant International says in a press release.
Under the scheme, wallet users can access a money-back guarantee, through which Ant International provides full compensation on unauthorized transactions. An automated approval system further streamlines user verification, boosting efficiency by 90% and accuracy above 95%, the company says.
A one-stop user portal offered by EasySafePay is available for wallet operators to integrate into their own platforms so they can address user concerns more efficiently with a suite of customizable tools. Consumers can make one-click payments without the need for redirection to a separate app or browser window for confirmation. Initial estimates have noted that this reduction in friction can improve conversion rates for merchants by up to 10%, boosting their revenue, according to Ant International.
TNG Digital chief executive officer Alan Ni comments: “The trust of our 24 million and growing verified users and over 2 million merchants is our greatest asset, and safeguarding that trust is non-negotiable. As TNG eWallet becomes an essential part of everyday life in Malaysia and across the region, this partnership allows us to combine advanced technologies and shared knowledge, to strengthen defences against evolving risks. By working together, we are not only protecting our users’ money and data, but also ensuring that everyone, from individuals to businesses, can rely on a secure, inclusive and transparent digital economy.”
Adds AlipayHK CEO Venetia Lee: “We safeguard our 4.5 million active users with 24/7 AI monitoring, customizable protections, and regular anti-fraud tips. By advancing our multi-layered security and working with partners on risk management, we’re committed to making digital payments in Hong Kong both secure and convenient.”
