Bank Negara is taking on the many challenges associated with quick response codes in Malaysia.
Bank Negara Malaysia (BNM) is placing a focus on rolling out QR code payment services. This is a part of a broader strategy to disrupt the traditional banking industry.
At the Malaysia Fintech Expo, BNM specifically referred to itself as “the biggest disruptor in the room.”
The bank referred to itself in that way as a part of a question its director of its payment systems policy department, Tan Nyat Chuan, asked in his keynote speech. The director described the bank’s intentions to challenge the status quo and pointed to the number of times it had already done so in the past.
“Banks have had to adjust to all our reform measures. No one can sit still. When we did the price signal reforms (implementing contactless card payments like PayWave), they had to readjust,” said Tan. “This is one of our signature toolkits. We rewire the structure. If we allow for status quo, the change will not be sustained.” New QR code payment services are a part of those changes.
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BNM has been making a considerable push toward QR code payment services in the Malaysian market.
The QR codes and mobile payments are a part of a wider effort BNM is making to encourage a cashless society. They are developing a framework unlike any other rolled out in the region. The purpose is to considerably reduce the country’s reliance on cash. The framework comes with the sizeable goal of a Interoperable Credit Transfer Framework (ICTF).
Should they successfully develop and launch the ICTF throughout the mainstream in the country, it would even the opportunities between banks and non-banks. Both banks and non-banks would have equal access to a system for completing transactions and payments.
According to Tan, their purpose is to make it possible for consumers to use whatever mobile payments service or mobile wallet they want to pay for the purchase of products and services. Later, the QR code payment services will also expand to allow for wallet to wallet payments. In that sense, regardless of whether a customer is paying a business, friend or family member, they would not need cash.