KUALA LUMPUR, Sept 7 — Islamic payment gateway PayHalal and Ar-Rahn (Islamic pawn booking) management system provider Zi Softech have joined hands to revolutionise the consumer experience in the Ar-Rahn industry.
Through the partnership, PayHalal aims to streamline payment processes and enable cashless transactions for 245 Ar-Rahn establishments nationwide.
It is projected that the collaboration will facilitate up to RM2.3 billion in payment transactions.
PayHalal chief executive officer Pat Salam Thevarajah said he is highly optimistic about the growth potential of their Ar-Rahn payment business.
Pat Salam said he He expects a 20 per cent year-on-year increase, highlighting the surging demand for pawn broking services in Malaysia.
“The ease of obtaining quick loans or instant cash has contributed to the rapid expansion of this industry in recent years.
“Ar-Rahn offers a straightforward and accessible financing solution, eliminating the need for extensive documentation or income proof."
He said customers can simply use valuable assets, like gold, as collateral or security at Ar-Rahn.
Zi Softech chief executive officer Mohd Zeidy said the firm has always prioritised new digital innovations and systems upgrades to ensure its partners and their respective Ar-Rahn outlets function to their best capacity for their clients.
“Through this partnership and payment system implementation, our vision to provide a Syariah compliance Social ESG delivery is now realised.
“Ar-Rahn outlets under our system management can now enhance their reputation, reduce risk management, have better capital and asset management, promote and showcase transparency and promote employee welfare and fair labour practices."
Traditionally, individuals with low incomes and small-sized entrepreneurs have relied on pawnshops for financing, as conventional financial institutions primarily cater to creditworthy borrowers from middle and high-income groups.
The collaboration between PayHalal and Zi Softech aims to bridge this disparity and provide financial access to those excluded from the formal financial system.
By leveraging PayHalal's Islamic payment solutions and integrating them with Zi Softech's Ar-Rahn Management system, both Ar-Rahn operators and customers can now enjoy a streamlined, secure and transformative Ar-Rahn experience.
The partnership between PayHalal and Zi Softech demonstrates their commitment to enhancing the financial inclusion of underserved segments of society.
The collaboration also aims to empower individuals who previously had limited access to formal financial services.