KUALA LUMPUR: Payment gateway provider iPay88 Sdn Bhd expects revenue contribution from international market to increase by the end of this year in accordance to its expansion plans.
Co-founder and executive director Chan Kok Long is confident that the company will see sales volume to double coming from international market as compared to last year.
He said iPay88 is looking at a local to international revenue contribution ratio of 80 and 20 per cent respectively.
"While Malaysia still leads in terms of revenue growth, as for sales volume, we are seeing a 34 per cent growth in Indonesia for the first and second quarters of 2017 compared to the same period in 2016.
"Number of transactions in Indonesia also grew by 97 per cent in the same period," he told reporters at a briefing here yesterday.
iPay88, an NTT Data company, is an online payment services and payment solutions for online merchants.
Chan said sales volume in the Philippines surged 64 per cent and the number of transactions recorded a growth of 44 per cent.
International revenue contribution stands at five per cent.
The company is targeting global e-commerce market while continuing to expand in Southeast Asia.
Chan said the opening of Indonesia and Philippines markets were important milestone for iPay88.
He said the next few years will see tremendous e-commerce growth in Thailand, Vietnam and Myanmar where smartphone penetration is one of the highest in the world.
“These countries have a big population and research shows that the younger generation prefers to make online purchases.
The company had since expanded its footprint to other parts of Asia including Hong Kong and Bangladesh.
Chan said although Bangladesh is a late entrant in the e-commerce sector, the company has observed tremendous growth within a short time.
“The e-commerce industry in Bangladesh, like other developing countries, has a ‘latecomer advantage’. It is encountering similar issues that we have encountered and addressed in Southeast Asia.
“Currently, the sector is facing challenges such as delivery channels for its customers, affordability, erratic internet connections and online fraudulence,”
Chan expects the company’s investment in Bangladesh to break even in three years.
iPay88 is also looking to expand in the Middle East, he added.