MALAYSIA

Asia Pacific

Though it is less than two years old, Malaysia’s IP network already boasts a robust infrastructure, supporting banks, P2P and merchant payments, and is on track for aggressive future growth.

Malaysia’s network, DuitNow, is a solution launched by the national payments network and central infrastructure provider, Payments Network Malaysia (PayNet), in collaboration with ACI Worldwide in 2018. The network enables users to send money instantly, 24/7/365, without registration — although users must register in order to receive payments. Registration simply requires linking an ID to the user’s bank or eMoney account. Transfers can be made using a recipient’s mobile phone number or ID number, such as their NRIC or a business registration number. Since July 2019, users are also able to make in-store payments with DuitNow QR, made available by participating banks and eWallets.

The maximum limit per transaction is MYR50,000 ($12,097) for consumers and MYR10m ($2.4M) for businesses. There are no fees when sending or receiving payments of up to MYR5,000 ($1,210), and a minimal fee of MYR0.50 ($0.12) for transactions exceeding this limit.

Timeline

MARKET DEVELOPMENT

ACCEPTANCE
  • Consumers
  • Banks
  • Merchants
  • Billers

TOTAL PARTICIPANTS

>40

Population banking level

2.57

Number of debit, credit and charge cards per adult

103

Index to global average

F

Fully banked

Key statistics

2018

IP launch year

Immediate payments types

Single instance, future dated, recurring

Initiation & authorization

Mobile number, QR code, NRIC number, business number

ISO 20022

Message standard

Transactions

7.1m

2019

1.2b

2024f

176.5%

F5 Yr CAGR

57%

% of adults who have a mobile wallet and have used it in the past year

Share of volumes by payments instrument

Transactions

2019
2024

Spend (USD)

2019
2024
  • Paper-based payments
  • Electronic payments
  • Immediate payments

Immediate payments volume and its share in overall NON-PAPER-BASED transactions, 2019-24f

% of total electronic payments transaction volume

Insight

Though a relative newcomer to IP, Malaysia’s scheme is set up for success thanks to several factors. One key metric is the diversity of segments already accepting IP. Additionally, mobile wallet adoption is booming, rising from 16.2% to 56.5% in the last five years. With IP integration into mobile wallets, the payment is likely to see accelerated adoption.

Consequently, growth is forecast to continue exponentially for at least the next half decade, if not longer. Companies should be developing IP functionality if they haven’t already, as acceptance will become table stakes in the next few years. Consumers will begin to expect IP acceptance as the continued success of mobile wallets and QR codes make IP highly integrated into the payments ecosystem.

ACI’s take

The centrally-driven mandate approach to making all banks ISO 20022-compliant on a unified connector/gateway was instrumental in driving up transaction volumes from day one. This accelerated time to revenue compared to other payment schemes, which have experienced a longer time to “ramp up,” was made possible through collaboration with ACI on the right solution to quickly onboard the participants.

Now phase two is underway. Aside from further expansion of QR code payments, Malaysia will soon embrace a new secure messaging service in the form of Request-to-Pay, which will overlay their existing payments infrastructure to provide control, flexibility and transparency of bill payments.

Malaysia is also in the process of adding a consent management platform for debits, credit transfer capabilities, eKYC digital ID compatibility and real-time debit capabilities, as well as cross-border payments with ASEAN IP schemes such as PromptPay and NETS, while enabling accessibility to all of the above through APIs. There is still plenty of growth yet to materialize in Malaysia.

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