MyClear, MEPS merge to form PayNet

Bank Negara Governor Datuk Muhammad Ibrahim at the press conference after presenting the Bank Negara Malaysia First 2017 GDP.

KUALA LUMPUR: Bank Negara Malaysia’s (BNM) wholly-owned subsidiary, Malaysian Electronic Clearing Corp Sdn Bhd (MyClear), has merged with Malaysian Electronic Payment System (MEPS) to form Payments Network Malaysia Sdn Bhd (PayNet).

BNM governor Datuk Seri Muhammad Ibrahim said PayNet would serve as the operator of a shared payments infrastructure for wholesale and retail payment transactions in Malaysia.

He said this in his opening remarks at the Second Malaysian e-Payment Excellence Awards 2017 in Kuala Lumpur on Monday.

Muhammad also witnessed the signing ceremony of the merger between MyClear and MEPS in conjunction with the event.

“PayNet will be jointly owned by BNM and the financial services industry. It will assume a key role in enhancing Malaysia’s growth potential through the provision of world-class payment systems that is competitive, efficient, open and innovative,” he said.

Muhammad said the merger would increase synergies and efficiencies through coordinated strategies for the development of shared payment infrastructures under a single entity, that would improve the cost-effectiveness, inclusiveness and value proposition of e-payment services in the country.

“In the immediate term, infrastructure projects to be spearheaded by PayNet, includes the establishment of a national addressing database to facilitate payments to recipients using their mobile phone numbers or National Registration Identity Card numbers.

“Over the next 12 months, PayNet will move forward with plans to develop and implement a real-time payments platform (RPP) that will facilitate interoperable mobile payments,” he added.

At the same time, he said PayNet would also promote the acceptance of MyDebit cards as a low-cost alternative for merchants to lessen the need for cash in retail transactions.

“In the long run, we should expect that the merged entity would venture abroad and strike foreign alliances to further expand network and reach,” Muhammad added.

Meanwhile, MEPS chairman Datuk Abdul Farid Alias said PayNet would operate the nation’’s key payment systems previously operated by MyClear and MEPS.

“These include the Real Time Electronic Transfer of Funds and Securities System (Rentas), and various retail payment and clearing systems, such as shared ATM network, Interbank GIRO, Instant Transfer and Financial Process Exchange (FPX),” he added. - Bernama