Payment Cards in Malaysia - Redefining the Way to Pay by Perry Ong

Payment Cards in Malaysia :
Redefining the Way to Pay
Mr. Perry Ong
Chairman, National Cards Group (NCG)
Payment System Forum and Exhibition 2014
Sasana Kijang, Kuala Lumpur
27 November 2014
Source : EvolutionOfPayments - Intuit

• Malaysia – The Evolution
• Vision 2020 – The Revolution
• Roles and Opportunities
• Evolution or Revolution?
Perry Ong, NCG for PSF 2014
2

Chip Based
Credit Cards
Debit Cards
Contactless
Cards
Chip & Pin
Cards
(2017)
Mobile Apps
/ Wallet
Magnetic
Stripe
Charge Cards
(1970s)
Magnetic
Stripe Credit
Cards
Payment
Cards
Evolution
Towards 2020
3

Bulky
EDCs
Landline
Wireless
/ GPRS
eCommerce
WiFi / MPOS
Contactless
/ NFC / POS
ECR
Application
Manual
Imprinters
EDC +
Printer
Merchant
Acceptance
Evolution
Towards 2020
4
Source : Visa 'just wave and go'
commercial - via Mumbrella

• Malaysia – the Evolution
• Vision 2020 – the Revolution
5

The Revolution Starts …
Towards a Cashless Society by 2020
800,000
EFTPOS
 1 Billion
Debit
Transactions
26 Banks, Issuers
and Acquirers
6
Merchants, Retailers, Services, Insurance, Wholesalers, etc
NATIONAL CARDS GROUP

Consumer Awareness Campaigns
Coordinating industry efforts on
• 800K EFTPOS and 1 Billion Debit Transactions by 2020
• Chip & Pin deployment (starting July 2015 to December 2016)
• MCCS and MyDebit
7

Chip & Pin Migration requires massive industry coordination
8
Jan 2017
• Online / Offline PIN
• Market switch from PIN bypass to enforced PINInteroperability
• Retailers for Card acceptance
• Consumers to remember their PINCommunication
• Re-carding of cards timing
• Terminal deployment coordinationDeployment
• Abandoned transactions (for non Pin Bypass
supported EDC
• Signature transactions (if after PIN enforced date)
• Lost and stolen scenarios
Liability Shift

The Revolution Starts …
Towards a Cashless Society by 2020
800,000
EFTPOS
 1 Billion
Debit
Transactions
26 Banks, Issuers
and Acquirers
9
Merchants, Retailers, Services, Insurance, Wholesalers, etc

Malaysia Debit Cards
How are we getting there?
0.00
200.00
400.00
600.00
800.00
1000.00
1200.00
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
DebitTransactions(mil)
DebitVolume(RM)(bil)
Debit Transactions
(mil)
800,000
EFTPOS
45
million
Cards
1 Billion
Debit
Transactions
Contact-
less
Cards &
EFTPOS
10

11

Ecosystem – Everyone has a role
•  Card  Cash
• Card privileges
• Speed in
acceptance
(contactless)
•  Cards
•  Cash
• Secure &
convenience
• Speed via contactless
•  EFTPOS in
market
• Value Add
• Remove price
barrier
• Contactless
• Issue more Cards
• Promote Card
Usage
• Contactless
Issuers Acquirers
MerchantsConsumers
12

How do Merchants Gain?
• Increased Sales
• Reduce cash  Reduce theft 
Reduce Cost
• Increase Average Ticket Size
• Improved Productivity
• Better Customer Service
• Enhance Your Business Image
13

Untapped Opportunities in the Market
Transportation Logistic
InsuranceDelivery Services
Micro Merchants
Street Vendors
Food & Beverage
Fast Food / Cafe
• Increasing Efficiency in payment &
collections of your business
• Enabling electronic payment for
traditional cash / cheque
collection
• Supporting end to end payment in
the vertical business (from
wholesale to retail to consumer)
Source : goSwiff – The Smart Way to Pay
14

15

Redefining the Way to Pay….
2020 Revolution
800K EFTPOS
1 Billion Debit
transactions
DEMAND
Real time,
faster,
anytime &
everywhere
SUPPLY
EFTPOS
Online
Mobile
16

17Source : The Future of Money and Mobile Money

Payment Cards in Malaysia - Redefining the Way to Pay by Perry Ong

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