One of the steps it is taking is waiving the Instant Transfer fee when consumers use online banking. According to BNM Governor Tan Sri Muhammad Ibrahim, the 50 sen transaction fee (before 6% GST) will be waived for up to MYR5,000 per transaction by individuals and mall enterprises. This will be effective 1 July, 2018.
Cheque fees, however, will be increased from 50 sen to MYR1.00, starting 2 January 2021, to reflect higher processing cost.
BNM said that cheque volume has declined 42 per cent from 205 million in 2011, down to only 120 million this year. On the other hand, electronic fund transfers more than quadrupled from 66 million transactions in 2011, to an estimated 329 million for 2017.
Based on the current rate of decline, BNM expects its target of reducing cheque usage to 100 million by 2019 to be achieved a year ahead of schedule. The central bank embarked on a 10-year e-payment roadmap in 2011.
Since 2009, the industry has invested MYR893 million to enhance the e-payment infrastructure, and will invest another MYR346 million to expand the Point-of-Sale (POS) terminal network. A further MYR40 million will be spent to develop the real-time retail payment platform.
Muhammad cited that payment technology has become more advanced, scalable and low cost. The use of QR code payment, as seen on platforms like AliPay, vcash, FavePay and others benefit merchants by lowering operation costs, and offer added convenience to consumers.
To encourage the adoption of QR code payment, the industry has issued an Interoprable Credit Transfer Framework (ICTF).
Through the ICTF, customers of banks and non-banks will be able to transfer funds across the network by using just their mobile phone number, IC or QR code.
There are currently 45.4 million debit cards and 42.8 million mobile phone subscriptions in the country, an encouraging environment for the growth of e-payment systems.