BigPay, Capital A’s e-wallet offering, is launching a brand new feature where you can apply for loans with instant approval. It claims to be the first all-digital personal loan product in Malaysia.
According to the teaser image, BigPay’s personal loan product offers approvals as fast as 5 minutes and no paperwork required. The app will push monthly reminders and users should be able to make refunds easily within the app itself. BigPay is providing a presentation of its product next week and full details are expected to be revealed very soon.
In case you missed it, BigPay received a provisional lending license in November 2020 from the Department of Housing and Local Government (KPKT). According to Capital A CEO Tony Fernandes, the license will allow users to get quick loans at low interest rates. He also said that although the B40 group will be the biggest beneficiary of the approval, the funding will also be available for others.
Besides BigPay, other companies such as Axiata Digital Capital, Grabfin Operations, GHL Payments, Presto Credit, JCL Credit Leasing, Fortune Tree Capital, and Hoop Fintech have also obtained a provisional license from KPKT.
BigPay’s personal loan offering comes at a time when several e-wallet players have started offering Buy Now Pay Later (BNPL) products. Some BNPL options offer interest-free installments for a short term of 3-4 months, but these are often limited to retail and online purchases.
Personal loan offers greater flexibility as users can use them for emergency situations such as medical or household repairs. It could be used for debt consolidation or to fund a new business, provided interest rates are favorable. Since its introduction, BigPay and its physical prepaid card have been popular among international travelers as they offer lower exchange rates and ATM withdrawal fees. In addition to this, the app also offers money transfer services at lower rates than traditional banks. Recently, BigPay increased its wallet size to RM20,000, but it still does not support DuitNow QR.
BigPay submitted its application for a digital banking license in Malaysia last year and hopes to offer full-fledged financial services to individuals, freelancers and MSMEs. Last year, they also secured $100 million (about RM418 million) in funding from South Korea’s SK Group.