Malaysia posted 1.1b real-time transactions in 2021

The country’s real-time journey began in December 2018 with DuitNow

by SHAFIQQUL ALIFF / Pic by TMR FILE

MALAYSIA had recorded 1.1 billion real-time payments transactions in 2021, facilitating an estimated US$434 million (RM1.91 billion) in cost savings for businesses and consumers, and unlocking US$364 million of additional economic output, equivalent to 1.11% of GDP.

It forecasted real-time transactions to grow at 3.6 billion in 2026, a CAGR of 26.9%, with net savings for consumers and businesses expected to reach US$637 million in 2026, generating additional economic output of US$954 million, or 0.2% of GDP.

According to the Prime-Time for Real-Time 2022 report published by ACI Worldwide Malaysia continues to accelerate the adoption of its real-time payment as well as introduce a stream of modern services, making it one of the most sophisticated real-time markets in the world.

The report, published in partnership with GlobalData and the Centre for Economics and Business Research, also stated that Malaysia is exceptional in the speed with which it has implemented nationwide real-time payments and its rapid adoption by banks and non-bank participants.

Malaysia’s real-time journey began in December 2018, with the arrival of a new real-time payments system, DuitNow, introduced by the national payments network and central infrastructure provider, PayNet.

The new, modernised system, built on the latest interoperable, global and open payments messaging standard, ISO 20022 expanded basic real-time low-value account transfers to include transfers via mobile phones and ID numbers.

It also supported online payments, in-store QR code-based payments, future-dated and recurring payments, and real-time cross-border payments with Asean.

Recent innovations have included consent management platforms for real-time debits, ‘DuitNow Request’. Future services include know-your-customer digital ID compatibility.

The report also forecasted an increasing consumer awareness, a growing preference for mobile payments and the abundance of DuitNow services and features will result in real-time payments volume growth of CAGR of 26.9% from 2021-2026.

Asean ACI Worldwide VP and head Chee Cheng Ong stated Malaysia is the perfect example for other Asean countries on how to establish, align and drive the adoption of a modern real-time payments network.

“By opting to form its real-time network on ISO 20022, it is rapidly becoming one of the most harmonised and sophisticated real-time payment environments in the world and a perfect launchpad to accelerate adoption as well as provide a host of new and value-added services,” he stated.

ACI Worldwide MD for Asia-Pacific Leslie Choo stated Asia-Pacific remains at the forefront of real-time payments innovation as its real-time base pivots towards larger volume transactions and more sophisticated services for our businesses and consumers.

“The next stage of evolution for the region is to develop linkages to provide a truly pan-regional real-time infrastructure, unlocking much greater economic benefit and opening up the formal financial sector to the region’s vast unbanked and underbanked population,” Leslie stated.

The report — tracking real-time payments volumes and growth across 53 countries — includes an economic impact study for the first time, providing a comprehensive view of the economic benefits of real-time payments for consumers, businesses and the broader economy across 30 countries.