PAYMENTS Network Malaysia Sdn Bhd (PayNet) and Grab last Friday announced a landmark collaboration that will make GrabPay the first e-wallet to adopt DuitNow QR (quick response), Malaysia’s national QR standard.
DuitNow QR is established under Bank Negara Malaysia’s Interoperable Credit Transfer Framework (ICTF). The ICTF mandates that PayNet as the country’s shared payment infrastructure provider to implement an interoperable and common QR standard for Malaysia. Four banks are already offering DuitNow QR in their mobile banking apps, with 25 banks expected to implement DuitNow QR over the next six months.
DuitNow QR will foster an efficient, competitive and innovative payment landscape in Malaysia by enabling interoperability, promoting collaborative competition, and providing fair and open access to the shared payment infrastructure.
Through DuitNow QR, users can make payments from any participating banks or e-wallets’ mobile apps. Merchants would only need to display one QR code, the DuitNow QR, to accept payments.
PayNet group CEO Peter Schiesser said at the moment, e-wallet providers are incurring substantial acquiring costs for merchants since they are each signing up the same set of merchants for their respective proprietary networks.
“With DuitNow QR, a merchant needs to sign up with only one bank or e-wallet acquirer, and customers of all participating banks and e-wallets would be able to make DuitNow QR payments to the merchant using their respective mobile apps,” he added.
Since the announcement of Grab’s strategic partnership with Malayan Banking Bhd and the launch of GrabPay, it has been reimagining the future of digital payments in Malaysia and across the region, especially with the vision to be the everyday e-wallet, meeting the daily needs of users.
Coupled with the constant introduction of new features and a rapidly growing partner network of both financial institutions and local merchants, this has significantly increased the adoption of virtual payments innovatively, which is in line with the government’s push to move Malaysia forward in the digital economy and cultivate a cashless society.
With its admission to the DuitNow QR scheme, Grab will add DuitNow QR support in the Grab app by the first half of 2020.
GrabPay Malaysia, Singapore and the Philippines MD Ooi Huey Tyng said: “We are honoured to be the first e-wallet to adopt DuitNow QR. With this partnership, we are confident that it will propel GrabPay further to provide a seamless and safe payment method for customers and merchants.
“The fact that DuitNow QR is interoperable, firstly, simplifies and provides users with a frictionless, rewarding payment method for consumers while providing our merchants a safe and cost-effective way to collect payments. Our strategy has always been focused on being hyperlocal, and our partnership with PayNet is yet another example of being customer centric in our approach in growing Malaysia’s cashless society as it makes it even more affordable and accessible for all Malaysians to do so.”
DuitNow QR is an extension of the DuitNow service launched in December 2018, which allows bank customers to transfer money instantly and securely on a 24/7 basis at banks’ Internet or mobile banking channels. DuitNow fund transfers can be directed using the recipients’ mobile numbers, MyKad or business registration numbers.
Following the path set by Grab, another 15 e-wallet providers and non-bank merchant acquirers have also applied to participate in DuitNow.
“Potential participants undergo a rigorous assessment and due diligence process before admission into the DuitNow scheme as we place great emphasis on the safety, security and stability of our payment eco-systems,” said Schiesser.
Grab’s entry into the DuitNow eco-system coupled with the upcoming participation of all retail banks and major e-wallets in Malaysia will cement DuitNow QR as the QR payment solution for Malaysia, providing a convenient, cost-effective and ubiquitous payment option for all merchants and consumers in the country.