The TNG cash back program: https://fintechnews.my/33848/e-wallets-malaysia/fave-offers-...
The TNG loyalty program: https://www.touchngo.com.my/promotion/redeem-your-points/
The TNG cardholder fees: https://www.touchngo.com.my/policies/touch-n-go-card-fees-an...
There’s also merchant fees (which are confidential). All of these systems are just reinvented credit cards. They often try to compete with credit cards on merchant fees, but you’re still paying for exactly the same thing. This “alternative” is just the same thing with a different name. You might find a few base points difference in merchant fees here and there (especially during the growth phase of these technologies), but the alternative isn’t to eliminate the premium charged for processing credit cards, it’s simply to allocate it to a different service provider.
Merchants are charged 0.5%. Compared to 2-3% in the US credit card scheme.
Also note that interchange is capped in the EU at 30bps, and they seem to do just fine without 2% cashback on every purchase. One might start to think that we can do with something similar here in the US.