Bank Negara partners with MEPS to form PayNet

Better late than never?

Bank Negara Malaysia (BNM)’s subsidiary Malaysian Electronic Clearing Corp (MyClear) has merged with Malaysian Electronic Payment System (MEPS) to create PayNet, which will serve as the operator of payment infrastructure for retail transactions.

“PayNet will be jointly owned by BNM and the financial services industry,” said Datuk Seri Muhammad Ibrahim, governor of BNM. “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.”

The merger is expected to be cost-effective as well as provide a value-added proposition for e-payment services in Malaysia. “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 NRIC numbers.”

PayNet will be building a real-time transaction platform in the coming 12 months and work in tandem with retailers to promote the use of MyDebit cards to replace cash transactions.

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

If you can’t join them, try and beat them! Or was it the reverse?