- Payments Network Malaysia just implemented its real-time payments platform and it will benefit the country’s merchants
- With Malaysia now a migrant destination due to its employment programmes, the remittance and payments industry has been experiencing steady growth in the past few years
- PayNet is working on linking other Asian nations to its network
Malaysia now has real-time payments thanks to Payments Network Malaysia’s (PayNet) implementation of its Real-Time Retail Payments Platform (RPP). The platform is reportedly using ACI Worldwide’s UP solution, according to reports and it is doing well in fulfilling its real-time transfer promise.
RPP going online is a welcome development to many Malaysian businesses as the platform will make it easier for them to collect payments as well as make it more convenient for them to pay their suppliers. Aside from local businesses and local e-merchants benefitting from RPP, migrants will be using the platform in the very near future, too.
The project has been in the pipeline for a long time, observers note, as Malaysia’s remittance and payment industry has grown in the past few years. The growth is expected to increase especially in the remittance sector since outflow will be inevitable.
Malaysia is now a migrant destination in Asia with millions of foreigners living and working in the country’s major cities. According to the country’s Home Ministry, an estimated two million migrants transfer money internationally on a regular basis to support family back in their home countries. Malaysia’s economy has been performing well in the past few years. The country proves to be quite resilient, a Star Online report notes, as it has a diversified economy. In fact, Richard Record of the World Bank says that the country’s diversified income stream will give its economy more strength.
Due to its economic growth, the migrant worker population in Malaysia reached 1,781,598 in 2017. The growth, experts note, is also due to the country’s employment programmes. The majority of Malaysia’s foreign workers come from Indonesia, followed by workers from Nepal, Bangladesh, Myanmar, and India.
Fintech experts say that the migrant population has had to contend with expensive overseas transfer rates for years but still send money home. While the new Payments Network Malaysia service does not offer instant credit transfer services for users who would like to send money abroad, the platform wants to build links with its neighbours.
“PayNet’s vision goes beyond just Malaysia – we aim to build links across the ASEAN region to enable cross-border instant credits and P2P payments, with an initial focus on our neighbouring countries”, says Peter Schiesser, the group CEO of PayNet.
The good news is, its DuitNow product makes instant credit transfers available to those living in the country. PayNet executives say that the system connects the mobile number of senders to their national ID numbers for security purposes.
DuitNow was well-received by customers, according to reports, but it is not the only product that PayNet and ACI are focused on. Reports note that they are now working on QR payments, e-mandates, real-time debit and request-to-pay services.
Find out more about developments in the remittance industry by following our magazine.
