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Over the past few months, many Malaysians have started to embrace the idea of e-wallets as an alternative to cash. But while the response to e-wallets has been encouraging, there are those who are struggling to make that lifestyle change, as cash has been a very constant part of our lives until now.
Recognizing this, government and industry players are working to address the biggest challenges in fostering greater adoption of electronic payments. This includes creating awareness and trust towards electronic payments through outreach programs, expanding acceptance of electronic payments among smaller merchants, and addressing gaps in digital connectivity.
To ensure no one is left behind and encourage more inclusive adoption, Bank Negara Malaysia says concerted efforts are underway to encourage a sustained migration to electronic payments. This means introducing measures to make eWallet payments affordable and convenient, improving accessibility by supporting initiatives to broaden the merchant base and strengthen awareness and trust.
“The migration to electronic payments is a shared aspiration and an integral part of the digital economy, from which the country could benefit enormously. As we actively strive to foster the development of the digital economy, it is important to ensure that all segments of the public have access to secure, reliable and convenient electronic payment services, ”Bank Negara told the Sunday Star. A common complaint among users that eWallet Payment processes are not uniform is currently being addressed.
“To provide an integrated and optimized payment solution to merchants, the industry has also collaborated to launch the DuitNow QR service. With DuitNow QR, merchants only need to register with one e-wallet operator and display a unified QR code that can be used to accept customer payments from other participating e-wallet operators, ”says Bank Negara.
To address internet connectivity issues, Bank Negara says that the National Fiberization and Connectivity Plan 2019-2023 (NFCP) launched by the Government last year will be a key enabler in ensuring that the public has access to affordable and affordable digital connectivity. high quality throughout the country.
The above measures will not only broaden eWallet acceptance among underserved communities, but the adoption of electronic payments can, in fact, help underserved communities access more secure, efficient and convenient payment services.
“For example, the elderly or disabled with mobility difficulties can pay bills, buy prepaid recharges or make purchases online from the comfort of their homes, without having to travel the distance to withdraw cash and run their errands,” explains Bank Negara . .
In education, steps are being taken to instill behavior change from an early age through initiatives undertaken by industry players to promote the use and acceptance of payment cards and e-wallets in schools, colleges and universities.
Ultimately, Bank Negara emphasizes that the goal is not to replace cash entirely, but to reduce the use of cash so that the public can benefit from greater cost savings and efficiency, which in turn would improve the company’s productivity and competitiveness. nation.
In terms of infrastructure, Bank Negara says Malaysia is ready for this change.
For an adult population of around 25 million, 95% have a bank deposit account with 45.8 million debit cards in circulation. Malaysia also has a relatively high penetration of smartphones at 78% and mobile broadband (4G) at 80% for users to access e-wallet services offered by banks and non-bank e-money issuers.
“To support this are underlying payment systems that are secure, reliable, efficient, and continually improved to support the future needs of the economy,” he says.
“For example, a real-time retail payment (RPP) platform has been implemented in Malaysia since 2018 so that payments are made seamlessly between bank accounts and e-money accounts by using common identifiers such as mobile phone numbers, card national registration identity (NRIC) and commercial registration numbers (BRN), and by means of a unified quick response code (QR) ”, he adds.
The Covid-19 pandemic has accelerated the adoption of QR payments among merchants. According to Bank Negara, the number of merchant registrations for QR payments increased to around 532,000 at the end of July 2020 compared to approximately 281,000 at the end of 2019.
“Electronic payment methods such as contactless payment cards, QR payments and online banking provide consumers with a more secure payment option by minimizing contact and reducing the need for non-essential travel to bank branches and retail locations. Embracing digitization also helps companies prepare for the future in the new normal, ”says Bank Negara, adding that digitization fosters competitiveness among companies.
But that is not the only benefit. A study published by the European Central Bank (ECB) in 2012 found that there is potential cost savings of up to 1% of GDP if a country migrates from paper payment instruments to profitable electronic payments.
Bank Negara assures the public that over the years, the financial industry has continuously adopted measures to strengthen the security of payment services, including the adoption of multi-factor authentication, the implementation of automated fraud detection mechanisms and relevant controls. to mitigate cyber risks.
In embracing digital financial services, including electronic payments, Bank Negara also highlighted the importance of users continually updating their financial knowledge so that they can make informed financial decisions and provide protection against financial fraud and abuse.
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