BIBD looks to make MSME Festival cashless with QuickPay

BIBD is waiving fees on its QR code point-of-sales solution for the festival, to enable cashless payments without traditional card terminals

MEMI minister Dato Seri Setia Dr. Awg Hj Mat Suny (C) with BIBD representatives at their booth at the MSME Festival.

BIBD is looking to turn the MSME Festival into a cashless expo by inviting all participating vendors to sign up for their QuickPay service which enables digital payments through QR codes using the BIBD NEXGEN mobile application.

QuickPay’s standard vendor commission fee of 2%, known as the merchant discount rate (MDR), will be waivered for all purchases during the four-day festival, which is showcasing the products and services of more than 200 local businesses.

This means participating businesses’ options for cashless transactions are not limited to debit and credit card payments – which typically costs the vendor 3% off each purchase. Vendors are instead displaying a printed QuickPay QR code for buyers to scan using their BIBD mobile app to make payments.

QuickPay has also been integrated into the latest version of Progresif Pay – a digital wallet that syncs with a customers’ phone number.

BIBD’s Head of Merchant Services Law Siew Vui added that businesses signing on as QuickPay merchants at the festival would enjoy a lowered rate of 1.8% for three months.

“After the three months, we will review whether that rate can be maintained based on the volume of transactions,” said Law. Similar to China’s WeChat Pay and Alipay, QuickPay looks to be a revolutionary mobile point-of-sale solution and alternative to traditional credit and debit card terminals and cash registers.

The MSME Festival is Brunei’s biggest showcase of local brands.

For Zakiyah Zaini, the owner of a business selling locally made headscarves and garments, BIBD QuickPay is an attractive solution for quicker, on-the-spot payments.

“My customers that pay cashless usually pay using bank transfer and that usually takes time – they have to log into the app, type in my account number to transfer the money and then wait for it to be approved,” said Zakiyah.

“This isn’t an issue if you’re doing business from home – but if you’re joining and expo or have a store with fast-moving products and sales, accepting individual bank transfers for each purchase will be difficult.”

Others say the standard MDR fee of QuickPay – while lower than debit and credit cards – may limit widespread adoption amongst small businesses who may still opt for cash to retain their sales without deduction.

“For small items like what I’m doing, such as laser engraved keychains and wallsigns, I can easily absorb the one to 1% to 2% transaction fee,” said Jamarul, the owner of Nagawitra Works. “But for anything larger, we would still (lean towards) using bank transfer.”

Businesses signing onto QuickPay needed to have a corporate account with BIBD, which recently revised its opening and minimum balance from $1,000 to $50 to enable more MSMEs to keep financial records while also opening up access to financial services.

QuickPay is an upgrade from BIBD’s previous QR code payment platform eTunai, which required businesses to have designated mobile tablets at their counters for customers to scan QR codes.

This requirement presumably limited eTunai’s widespread adoption, with less than a few hundred businesses signing on to the platform since its introduction in 2013.

However, BIBD is confident that QuickPay – which doesn’t require the business to station tablets – will be Brunei’s breakthrough cashless payment service, especially in enabling MSMEs to go digital.