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29.07.2024 - 05:44 / skift.com / Peden Doma Bhutia
As part of its strategy to enter key markets in Southeast Asia, India-based online travel agency (OTA) HappyEasyGo on Monday announced that it would be partnering with global payments-infrastructure provider Primer to offer localized payment solutions.
The company plans to establish a significant presence in Singapore and Malaysia, viewing these markets as gateways to further expansion into Thailand and Indonesia.
“We recognize the growth potential in these regions due to their robust economies, high internet penetration rates, and increasing demand for travel services,” Boris Zha, founder and CEO of HappyEasyGo, told . “Our initial focus will be on building strategic partnerships with local airlines, hotels, and travel agencies.”
But there are also plenty of challenges for OTAs entering new markets, including different local regulations and consumer behaviors.
“Cultural differences and varying levels of technological adoption also pose significant hurdles,” Zha said.
One big issue: The fragmented payments landscape in Southeast Asia.
HappyEasyGo said it would leverage Primer’s Unified Payments Infrastructure. “Primer provides a unified payment infrastructure that can seamlessly integrate with multiple payment methods and processors,” Zha said.
In a report this year, Boku, a global network for localized payment solutions, revealed that Asia Pacific continues to lead the world in the adoption of local payment methods.
An Airwallex and Skift research has also revealed that 66% of travel companies believe inefficient payment systems are harming their profits.
Zha emphasized the importance of localized payment solutions for improving customer satisfaction. By offering familiar and trusted payment methods, the company aims to make booking trips faster and easier, reducing the number of people who leave the process midway.
In Singapore and Malaysia, popular payment methods like GrabPay, PayNow, and FPX will be key.
“Localized solutions often come with better fraud detection and prevention tailored to specific market conditions, providing customers with a safer transaction environment,” Zha added.
A PwC Singapore report had noted that the pandemic has accelerated digital transformation in Southeast Asia, positioning the region to lead the shift to cashless payments and drive further innovations in digital services. By 2030, Southeast Asia’s consumer base is expected to reach 623 million, establishing the region as the world’s fourth-largest economy.
Zha anticipates unlocking new revenue streams through enhanced payment solutions. “Offering various payment options can attract a broader customer base, including those who prefer alternative methods. By leveraging data insights from our transactions, we can
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