Take-Home Test:

USE SETEL MOBILE APP TO PAY FOR FUEL AT PETRONAS STATIONS IN

KLANG VALLEY

There is a set of questions based on the following article. Read the article carefully and
answer ALL questions in the spaces provided under each question.
Total: 100 Marks

Setel is changing the way people pay for their petrol at Petronas

Setel, a new mobile app for fuel payment at the petrol pump that is “bringing greater
convenience, accessibility, and features to road users”, is now available at all Petronas
stations in Klang Valley. Operated by Setel Ventures Sdn Bhd, a wholly-owned subsidiary of
Petronas Dagangan Berhad, the app has been available since mid-2019 but only at limited
Petronas petrol stations.
The app doesn’t function just as a method of payment; it’s an app that allows you to select
your petrol, the amount of fuel you need, and pay for it, all from inside your car. Available on
both Android and iOS, Setel’s main benefits lie in the convenience and safety it adds to the
petrol-pumping process. At the petrol station, you don’t need to get down to use the card
machine at the pump or walk over to the counter to make payment. With Setel, your whole
transaction can be done in three steps in the comfort and safety of your air-conditioned car:

 Key in the pump number where your car is

 Choose to pump a full tank or a specific amount
 Enter your 6-digit security PIN to activate the pump

All that is left for you to do is fill up your tank and you’re done! Topping up funds in your
Setel e-wallet is also easy; you can top up with as little as RM1 using your credit/debit card or
via online banking, just like GrabPay or WeChatPay, with an option to enable an auto top-up
function as well.

The Setel mobile app allows users to search for participating

 Petronas petrol stations nearby

Besides the ease of using the app, a big plus point is that Setel payments are not subject to
the pre-authorization charge imposed on credit/debit card use. Merchants handle a purchase
with a debit card or credit card by submitting it through a network such as Visa or
MasterCard. The money will still come out of your account, but it might take approximately
two days for the transaction to clear through the card system. Note that it is the bank, not the
merchant, that places the pre-authorization charge of normally RM200 when the transaction
occurs. When the final transaction posts to your account, the bank should lift the hold it had
placed on the funds. Using Setel is a good way to avoid having RM200 held from your
account balance for 48 hours. Moreover, you can even collect Mesra points (the loyalty
program at Petronas petrol stations) and keep track of your points history through your Setel
app. Once you’ve linked your Mesra card to the app, it automatically collects rewards points
for you when you pump so that you don’t even need to bring your physical Mesra card.

Furthermore, Setel app is a good solution for those who want to keep track of their petrol
spending as it shows you all your petrol transactions in one place. Transaction receipts can be
viewed in-app and automatically sent to your verified email address – which is more eco-
friendly than keeping physical receipts.

It’s also easy to find your way to the nearest Setel-enabled Petronas station as the app has a
list and map view of the nearest stations around you, complete with search filters. The filters
are actually useful to pinpoint which station has specific facilities (surau, ATM, baby change,
etc), fuel type, and food and beverage options. Once you’ve selected which petrol station to
go to, you can then navigate there through Maps, Google Maps, or Waze with just a tap.

Given that Setel offers a convenient and safe refuelling process, it definitely feels like more
than just another e-wallet to make payments with. For Malaysians who hate the heat and long
queues or have young children in tow, the ability to “settle” almost everything while inside
their car is quite attractive. Setel also gives assurances that the app is safe for use while inside
the car or outside the yellow box next to each fuel pump.
 The Setel mobile app is packed with features to help users purchase fuel,
top-up, as well as keep track of their petrol spending

Setel has also announced its latest feature: Refer A Friend. The introduction of this feature
allows Setel to further encourage adoption, while rewarding existing users for spreading the
word of the app. Every time a user’s unique referral code is used to register a new user and
the new user transacts a minimum RM30 worth of fuel via the app at any Setel-enabled
Petronas station, the referrer will earn credits for fuel. RM5 and RM6 respectively will be
rewarded for the first and second referral and RM7 for the third referral onwards. The referred
user will also get RM5.

“The introduction of the Refer A Friend feature is our way of giving back to our current users
while encouraging more people to experience the convenience that Setel brings to refueling.
More than just an e-wallet for PETRONAS stations, the Setel app is changing what has
always been accepted as the standard process when refueling at petrol stations. With Setel,
customers can enjoy a convenient retail and experience faster fueling, and richer loyalty
proposition,” said Iskandar Ezzahuddin, Chief Executive Officer of Setel.

As a summary, Setel was developed to eradicate problems faced by car owners when
refueling, by integrating payment and loyalty benefits into one app. The convenience of
paying at the pump through one’s mobile phone eliminates issues such as long queues and
leaving children unattended in the car while making payments at the counter, it said.
Furthermore, customers can avoid the RM200 hold (pre-authorization charge) incurred when
using credit and debit cards by utilising the app’s e-wallet feature. All transactions are
tracked, and convenient e-receipts allow for a better overview of expenses for fuel. Setel is
integrated with the Petronas Mesra loyalty programme allowing users to earn Mesra points
without needing to physically swipe their card.

Setel was developed to provide a new retail on-the-go experience for consumers who demand
a quicker, more convenient lifestyle; allowing them to move like never before. The support
that we have received from the public has been very encouraging. As we continue to grow our
presence in the country, we will continue to introduce more innovative features that are not
only focused on fueling at the pump, but also providing an enhanced end-to-end experience
for our customers on-the-way, at, and after leaving the PETRONAS station,” Iskandar
continued.

Accessed from: https://www.malaysianwireless.com/2019/06/setel-petronas-fuel-mobile-payment/

QUESTIONS:

1. Explain how Setel’s e-wallet fulfills the following strategic business objectives (SBOs):
a) Competitive advantage (2
Marks)

b) Enhancing customer intimacy (2

Marks)

c) Improved decision making (2

Marks)

[Total: 6
Marks]

2. Assume that you drive to a participating Petronas station and saw that Pump 7 is empty so
you take the spot and choose Pump 7 on the app. Setel’s mobile app will sync with the
pump, which normally takes about 20 seconds, before the screen will prompt you to start
fuelling up. Once you are done with refuelling, your receipt shows up in the app and you
are able to click on it for expanded details. This resembles something like a digital
dashboard, which is a common feature of modern-day executive support system (ESS).
Identify and explain any THREE (3) characteristics of such system.
 (6
Marks)

3. As an e-commerce player, how do you classify Setel based on its level of digitalness and
the type of customers it deals with? Explain.

(6
Marks)

4. Explain any THREE (3) unique characteristics of e-commerce applied by Setel.

 (6
Marks)
5. Setel’s success depends on it having a sound business model. Describe ALL EIGHT (8)
components of its business model.
i) Customer value proposition:

ii) Revenue model:

iii) Market opportunity:

iv) Competitive environment:

v) Competitive advantage:

vi) Market strategy:

vii) Organizational development:

 viii) Management team:

(24
Marks)

6. It is essential for Setel to achieve critical mass in terms of its customer adoption for it to
sustain its business amidst the increasing number of competitors in this digital payment
platform. As is with any other companies out there, Setel can refer to various consumer
behavior models in trying to predict the decisions that consumers make in the
marketplace.

a) How should Setel apply online market research to identify market opportunities for its
business? Your explanation should include data collection methods and data analysis
tools that are utilized by online market research.
i) Data collection methods:

ii) Data analysis tools:

 (8
Marks)

b) How should Setel utilize online marketing and advertising tools to optimize its
customer adoption? Your explanation should highlight the MOST suitable mode of
online marketing and advertising tools based on Setel’s business operations.

(8
Marks)
[Total: 16
Marks]

7. Assuming Setel operates as a digital business, it must be cautious about various threats
associated within the digital business environment. Not all cybercrime is about stealing
money. Some online crime was done just to damage the reputation of others. Some break
into systems just to vandalize or disrupt a web site. Hence, a good e-commerce security
requires a set of laws, procedures, policies, and technologies to protect individuals and
organizations from unexpected behaviour in the e-commerce market. Explain any
THREE (3) key dimensions to e-commerce security.
 (6
Marks)
8. Setel’s e-wallet software is a cloud-based GIS platform integrating diverse datasets that
have been curated, cleaned, and combined, including transaction data, banking/credit
information, as well as loyalty points tracking. It communicates crucial information more
effectively to its stakeholders. It also shares complex information through superior data
visualization, to build a collective understanding of business operations across
geographies and sectors. Although all of these enable Setel to effectively respond to its
stakeholders’ needs and demands, one should never forget the long and difficult process
of developing the system in the first place.

a) The use of databases and data warehouses would be critical for Setel’s business
operations. Identify any FOUR (4) problems common to the traditional file
environment that databases and data warehouses help eliminate.

(4
Marks)

b) Describe the THREE (3) factors that could influence Setel’s website optimization.
 (9
Marks)

c) Identify the EIGHT (8) most important factors in successful e-commerce site design
that Setel’s management team must emphasize to its website development team.
 (8
Marks)

d) What would be the most appropriate systems-building approach and method for such
e-wallet? Why? What are the steps to be taken in the development process?
Approach:

Method:

Why?

Steps:

(15 Marks)
[Total: 36 Marks]
END OF QUESTION PAPER