KUALA LUMPUR: MALAYAN BANKING BHD (Maybank) is upping its fintech game with the introduction of Tap2Phone, an app which enables merchants to accept credit card payments from customers without the need for a point-of-sale terminal.
The nation’s largest bank is the first in South-East Asia to introduce the payment solution, which is supported by the latest Android-based smartphones that are equipped with Near-Field Communication (NFC) and Trusted Execution Environment (TEE) technologies.
Maybank community financial services (CFS) Malaysia head Datuk Hamirullah Boorhan said the bank aimed to enable over 10,000 device acceptance points within the next 12 months.
He added that Tap2Phone is expected to generate an additional RM350mil in the value of merchants transactions, on top of RM60bil in current transactions.
“We believe that simplicity is a crucial feature when transacting. The Tap2Phone service provides just that, by allowing merchants to provide seamless and instantaneous payment options for their customers through a secure and easy-to-use mobile payment technology.
“Our continued commitment in spurring the country’s economic growth is a key priority for us and we’re supporting the growth of SME development as well as the nation’s cashless agenda by leveraging on technology,” he said in at the Tap2Phone launch.
The bank expects the service to benefit businesses and give them greater control in managing their daily operations. For a broader strategy, Hamirullah said the launch of Tap2Phone showcased Maybank’s aspirations in becoming a digital bank of choice in the region.
Launched in collaboration with Visa Malaysia, Tap2Phone is catered to small businesses as well as delivery and sales agents.
Merchants will simply have to download and launch the Tap2Phone app on their smartphones and customers can tap their payment cards on the back of the merchant’s smartphone to transact. The fee for the service is RM5 per month.
Tap2Phone accepts all contactless payments for transactions of RM250 and below.
Moving on to another phase later, Maybank’s group CFS head of cards B. Ravintharan said the bank would allow a higher amount to be transacted over Tap2Phone where customers would have to enter their 6-digit personal identification number (PIN).
Visa country manager Ng Kong Boon said Visa Malaysia is excited to partner with Maybank in this roll-out because of the huge opportunities for cash displacement among small business and merchants.
“SMEs contribute almost 40% of Malaysia’s GDP and business transactions today are still mostly in cash.
“Visa contactless transactions in Malaysia are becoming increasingly popular, with four out of 10 Visa transactions being contactless,” he said.
The penetration of contactless payments is currently at 35% as compared to only about 5% two years ago.
Powered by Soft Space, Tap2Phone will be fully rolled out in September.
Did you find this article insightful?