KUALA LUMPUR: Cashless transactions are now easier as Managepay Systems Bhd inked a partnership with Mastercard to launch MPay Mastercard prepaid card that offers new alternative to paying cash.
Managepay Systems Bhd (MPay) is a fintech company, a provider of electronic payments as well as a service provider for banks, merchants and card issuers.
“Cash is indeed clumsy. By moving towards a cashless society, it helps Malaysia to be more efficient, which will improve our GDP growth,” said Mastercard Asia-Pacific country manager Malaysia and Brunei Perry Ong.
MPay group managing director and chief executive officer Datuk Chew Chee Seng said in a media briefing that the company was targeting for 100,000 card subscribers in the first year. He added that the company would start endorsing this card to the retail outlet members of Malaysia Retail Chain Association (MRCA). MRCA comprises of 270 retain chain store operators and franchisers which covers more than 20,000 outlets through out the country. Last month, MRCA and MPay signed the MPay MRCA Ringgit Rewards Card Programme agreement whereby the MRCA members can reward their loyal shoppers with cashback. MPay aims that 20 MRCA members would be on board before end-January 2017.
In the meantime, Chew said their target market is not only the consumers for issuing the prepaid card, but also supplying the terminals to the merchants. In the response to whether retail outlets will adopt this launched card, MRCA president Datuk Garry Chua told StarBiz on the sidelines that most retailers are excited and positive on getting the terminals as being a cashless society is the way to go.
Chew pointed out that the company will start to roll out the terminals to Greenfield communities which have no experience in accepting e-money such as canteens or laundry shops. Furthermore, he said the company’s revenue is expected to double on the back of fee-based income from the MPay Mastercard prepaid card.
Moving forward, Chew said they will mass-market the MPay Mastercard by this year, and are planning to expand its services to Indonesia next year. The partnership between MPay and Mastercard echoes Bank Negara Malaysia’s payment card reform framework that was implemented last year to initiate consumers to use payment cards more widely.
Bank Negara’s payment card reform framework targets to reach 800,000 eftpos terminals and RM1bil debit card transactions by 2020.
Ong said Bank Negara’s initative of pushing this payment revolution would increase investments towards efficient infrastructure by financial and non-financial institutions, which will enable the country to become a cashless society.