KUALA LUMPUR (May 22): Newly-formed Payments Network Malaysia Sdn Bhd (PayNet) is set to take over the country’s shared payments infrastructure operations to ensure they are competitive, efficient, open and innovative.
The move will accelerate the migration to electronic payment (e-payment) and meet the needs of the economy, said Bank Negara Malaysia (BNM) in a statement today.
PayNet is a merger between BNM’s wholly-owned unit Malaysian Electronic Clearing Corp Sdn Bhd (MyClear) and Malaysian Electronic Payment System Sdn Bhd (MEPS). It will be jointly owned by BNM and the financial industry.
PayNet will operate the nation’s key payment systems previously operated by MyClear and MEPS, including Real Time Electronic Transfer of Funds and Securities System (Rentas).
Rentas facilitates the transfer and settlement of high-value interbank payments and securities transactions, and various retail payment and clearing systems, including the Shared ATM Network, Interbank GIRO (IBG), Instant Transfer, JomPAY, Financial Process Exchange (FPX), Direct Debit, domestic debit card network (MyDebit) and the cheque clearing system.
“PayNet would play a key role in enhancing Malaysia’s growth potential through the provision of world-class payment systems that are competitive, efficient, open and innovative,” said BNM governor Datuk Muhammad Ibrahim.
He said as a shared utility, PayNet would operate with a public interest objective to support and develop safe, reliable and efficient payment systems in Malaysia.
It is also expected to raise synergies and efficiencies through coordinated strategies that would improve cost-effectiveness, inclusiveness and the value proposition of e-payment services.
BNM said that in the immediate term, PayNet would see to the establishment of a national addressing database to facilitate payments to recipients using their mobile phone or identity card numbers.
It would also promote the acceptance of MyDebit cards as a low-cost alternative for merchants to lessen the need for cash in retail transactions.
MEPS chairman Datuk Abdul Farid Alias said the merger is appropriately timed as it is crucial for Malaysia to avoid duplication and consequently make the right investment decisions to help prepare the domestic financial sector in future.
Hopefully this new payment could improve the previous MEPS and MyClear. Let’s make our country cashless.