Mobile payment in Malaysia set to increase, says HSBC

HSBC said the outlook for mobile payment in Malaysia looked promising. — Reuters pic
HSBC said the outlook for mobile payment in Malaysia looked promising. — Reuters pic

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KUALA LUMPUR, Oct 3 — With the growth of digital economy and the push by regulatory authorities for demonetisation, instant payment schemes are emerging across the Asean region, including Malaysia, where the mode of payment is increasingly shifting from the traditional method to mobile electronic payments.

HSBC Bank Malaysia Bhd Country Head of Global Liquidity and Cash Management Mandeep said with greater infrastructure development in the banking industry, thanks to the efforts of the regulator and financial technology companies, the outlook for mobile payment in the country looked promising.

“There is a need for collaboration between the prepaid electronic cash card provider and the banking industry in making transactions more seamless for customers’,” he said during a media briefing on digital transformation being the emerging trend in Asean here today.

Mandeep said although the companies that owned such cards operated independently, payment could be made via online banking or by using stored value-card, which was an area that could be studied in detail for further advancement.

He added that there were already talks of tie-ups between Touch N Go smart card issuers and the banking industry.

In the last three to four years, the banking industry has been experiencing a dip in the traditional method of banking with the onslaught of online banking, Mandeep said.

The use of cheques to make payment has dropped about 16 per cent per annum, he added. — Bernama 

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