Electronic payments are transforming and empowering Malaysia’s digital economy.
ELECTRONIC payments have become an essential part of daily life, particularly since the pandemic.
Malaysians are all accustomed to making e-payments by now. Whether it’s paying for groceries with debit or credit card at supermarkets, shopping online with internet transfer, and paying for boba milk tea using DuitNow QR.
These are all convenient modes of payment. It reduces health risks from close human contact and security risks from carrying cash.
It is worth noting that electronic payments also offer many benefits for businesses. Many aspiring entrepreneurs who wish to start a small home business or set up a stall at the neighbourhood market might be happy to learn about how DuitNow QR could help all businesses!
DuitNow QR has gone international
Malaysia’s national QR standard DuitNow QR is now connected with Singapore’s NETS, Thailand’s PromptPay, and Indonesia’s QRIS. That means businesses in Malaysia can now receive payments from Singaporean, Thai and Indonesian tourists using the DuitNow QR.
Tourists from these countries can easily scan the DuitNow QR using their mobile banking apps or e-wallets to make instant payments while they travel in Malaysia. All businesses in Malaysia will benefit from the ability to expand their business to tourists from these countries.
Conversely, when travelling to these countries, instant payments can be made by scanning the local QR codes with participating mobile banking apps or e-wallets too. But before doing that, be sure to check out the list of participating Malaysian banks and e-wallets at the end.1
Secured and safe
The shift towards e-payments significantly reduces the risk of potential losses stemming from physical cash handling and transfers.
Business owners can rest assured that the transaction proceeds will instantly be sent to their business account. They no longer need to prepare cash for change or go to the ATM to deposit cash received.
Simple and low cost
It is so easy to make payments using DuitNow QR that customers can scan and make payments independently. Business owners, especially micro-entrepreneurs operating small stalls, no longer need to spend money or time hiring cashiers to operate cash machines and give change.
This also means there will be no long queues at the till, and business owners can process more businesses at any time. The business operation can even be expanded to 24-hour as DuitNow QR is available all the time, both online and offline at physical shops.
On top of that, business owners can make good use of the transaction records for accounting purposes. Gone were the days when entreprenuers needed to count the cash and coins to reconcile with the sale records at the end of each business day.
All in all, DuitNow QR remains the cheapest payment option for businesses, given that even receiving cash payments would involve many of the costs and risks mentioned above.
Is there a cost for using DuitNow QR?
There is absolutely no cost to customers who pay using the DuitNow QR. Customers should pay the same price for goods and services regardless of the payment method, whether cash, debit, credit cards, or DuitNow QR.
However, the merchant discount rate (MDR), a fee applied to electronic payment services, may apply to business owners who receive payment from their customers through electronic payments.
Typically, this fee represents a percentage of the total transaction amount customers pay the merchant. A business owner would receive the payment made by their customers after deducting the MDR. This applies to all electronic payments, including DuiNow QR and card-based payments, where MDR is incurred.
The MDR covers the costs to upkeep payment systems, such as cybersecurity and fraud prevention control. It is also used to maintain service reliability and robust security standards for users. These costs are vital in ensuring businesses and individuals continue to be confident in using payment services daily.
However, it is important to know that smaller businesses, such as micro, small and medium enterprises (MSMEs), will still enjoy waived MDR from most DuitNow QR merchant acquirers. For MSMEs looking to set up a DuitNow QR payment for their business, it is advisable to talk to the bank and non-bank merchant acquirers to learn more about the fee, if any.
E-payment is the way forward
Even though the pandemic is behind us, it is clear that e-payment is here to stay and the only way forward. Considering all the benefits mentioned above, maybe it is high time to embrace electronic payments to accelerate Malaysia towards a digitalised economy.
References
https://www.duitnow.my/Cross-Border/index.html
