The core messaging behind GrabPay is fealty to the merchants and patience, which is why they will win

Yesterday, when Grab announced its GrabPay system could be used to buy goods, I went around the e27 slack channel telling my colleagues this was the second most important moment in the company’s history.

I was wrong. It was third.

Actually incorporating Grab is obviously the most important and the first time someone successfully booked a ride using the app would probably come in second.

But the overall point still stands; this is one of the most significant moments in the history of Grab.

It makes official the idea that Grab doesn’t want to become the “Uber of Southeast Asia”, it wants to be WeChat. This has been fairly obvious to tea leaf-readers for awhile now, but yesterday’s news was the coming out party.

What this means is that Grab is gunning for the ultimate prize in software — become a verb. In five years, the hope is a person won’t “call a Grab” but rather will “Grab it”, which might mean buying Ban Mian, nabbing more air miles or calling a taxi (all services that are available today).

Google is the ultimate example of a brand becoming a verb but Facebook, Snap, Twitter and others have all achieved some level of this phenomenon. (“Tweet this” being one of the best verbifications of a service as it also implies raising a double middle-finger).

Also Read: You can now buy goods using Grab

After the announcement yesterday, people took to social media to express their opinions on whether or not Grab could accomplish their goal. Specifically, the conversations surrounded whether or not GrabPay could become the winner in Singapore’s drive towards a cashless society.

Optimists point to WeChat or Go-Jek as proof of concept for what Grab is trying to achieve. The success of WeChat and Go-Jek was not because they were an exceptional social media platform or ride-hailing service. They grew to dominate because they can do everything.

Detractors point out that it is less convenient than NETS. I have my card in my wallet anyways, why would I upload cash to an app from the same source? Plus, these payment systems have not toppled cash in Singapore.

Both arguments are correct, and really nobody (not even Grab) knows who will win. But if we are going to play the prediction game, I land on the side of the optimists.

The reason is simple: the company is approaching the problem with humility and patience which, in the end, will result in them winning the market.

Patient and humble

A key messaging decision from GrabPay Managing Director Jason Thompson yesterday was to display deference to the shop owners. A decent portion of his speech was dedicated to the “genius” or “brilliant” ways these SMEs manage their finances.

This is important because in Singapore the reliance on cash is too often framed as an unwillingness to accept unfamiliar concepts.

It brings to mind an aging uncle whose is insistent on being a cash-first business. His decision is unwise and is borne out of stubbornness. These SMEs would see exponential growth, “if only they saw the light”.

This is not only untrue, it is demeaning to business owners who may very well wish to transition to cashless but the services being offered are below standard.

Nizam, the shop owner I spoke with yesterday, appeared to be only slightly older than myself (I am a millennial) and was still in the age range where to be called ‘uncle’ hurts a little bit. He did not come off as stubborn and actually said he was trying GrabPay out of “curiousity”.

Thompson seems to understand the motivations behind staying cash-only and his approach towards dispersing the payment system is fairly modest considering the size and mindshare of Grab. The first step is to get 1,000 companies on board. That’s it. Nothing more, nothing less.

Unlike, say, Razer CEO Min-Liang Tan, there were no grandiose claims of transforming Singaporean society in 18 months. Razer probably could build a city-wide infrastructure in that timeframe, but that’s the easy part. The hard part is getting people to use it.

Also, it did not sound like Grab is pursuing the scorched-earth strategy of the bike-sharing industry, by which entire cities are suddenly drowning in cheap bicycles whether they want it or not.

What will happen is people will notice more signs popping up at the hawker centres, then it will expand into other cashless shops, then maybe it will be next to the NETS system at the local cafe, then maybe the grocery store and then…. well you get the point.

Also Read: Razer has unveiled its new phone and its specs are to die for

While Grab does pitch its large audience as a differentiating factor compared to other mobile wallets, Thompson said GrabPay’s greatest competition is cash.

This is why the company is navigating its cashless play carefully. Its a high-stakes game with really only one chance to get it right. If it doesn’t work, it is hard to imagine people giving their mobile wallet a second chance.

Without the mobile wallet, Grab will remain a ride-haling company (still a great place to be) but its play to ‘become a verb’ would probably be over. As Thompson seems to realise, it isn’t taking on another company, it’s challenging an infrastructure.

Cash is still king, and as the saying goes, “If you come at the king, best not miss”.

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