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Singapore based startup Razer will shut down its e-wallet services at the end of September. The growing competition in Southeast Asia’s e-wallet market has led the brand to put up its shutters on the Razer pay e-wallet and Razer Card project. With Razer Pay’s end pressure is building for other e- wallet brands.

According to the website, Razer Pay in a notice stated “The app will no longer be available from October 1, 2021 onwards.” instructing account holders to withdraw their balance. Payments will only be accepted until the end of August, and new sign-ups are no longer allowed.

Razer’s e-wallet shutdown comes as the high costs of customer acquisition weigh on operators. The company wants to shift its focus to B2B digital payments services which it sees as promising.

Razer is a gaming hardware maker which launched its e-wallet services first in Malaysia in 2018 and then Singapore in 2019. They had acquired over 1 million users. Originally, Razer started the payment service to allow gamers to buy its gaming items online. Then it expanded the service to non-gamers, targeted at young customers including those without a bank account or a credit card.

However competition in ASEAN grew rapidly with many micro, small, and medium companies and tech companies entering the e-wallet field to secure funds and as an extension of their businesses. The focus of Southeast Asia’s e-wallet battle is shifting to the next phase. E-wallet operators hope to add other services such as online lending and micro-insurance to scale their fintech businesses.

Zennon Kapron, director at financial research company Kapronasia in Singapore pointed out that a unique value proposition is critical for an e-wallet. “The e-wallet space in ASEAN won’t be won necessarily by size, but by ecosystem,” he said, noting that Tencent Holdings’ WeChat Pay in China is successful because millions of Chinese use the app not just to pay for things but also to chat with friends and be entertained. He also said that, “The ASEAN wallet that is able to provide a similar sticky value proposition that encourages users to use the platform on a daily basis will be the winner”.

Team Eastern Interest
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