e-Payment Solutions for Businesses: Saving Costs and ...dlm.skmm.gov.my/dlmskmmgovmy/media/General/pdf/My... · e-Payment Solutions for Businesses: Saving Costs and Improving Efficiency’

e-Payment Solutions for Businesses:

Saving Costs and Improving Efficiency’

9 June 2015

Introduction

Malaysian Electronic Clearing Corporation Sdn Bhd (MyClear) was incorporated in

October 2008 as a wholly-owned subsidiary of Bank Negara Malaysia to provide

interbank payment settlement and securities services

– Real-time Electronic Transfer of Funds and Securities System (RENTAS)

– National Electronic Cheque Information Clearing System (eSPICK)

– Securities Services (FAST)

© 2015 MYCLEAR. ALL RIGHTS RESERVED. 3

© 2015 MYCLEAR CONFIDENTIAL 4

JomPAY is a service that allows

your customers to easily pay

your bills and invoices using

bank accounts or credit cards at

42 banks.

JomPAY is available on Internet

& Mobile Banking.

JomPAY was developed as a

national initiative involving

Billers, Banks, Bank Negara

Malaysia, MyClear and

Government.

What is JomPAY


Video


Current Scenario on Connection with Banks

Bank A

Bank B

Bank C

Bank D

Bank E

Bank F

Bank G

Bank Z

…

Customer

Customer

Customer

Customer

Customer

Customer

Customer

Customer

Customer

Customer

Customer

Customer

Customer

Customer

Business


Online Payment Process Biller

Biller Bank

Merchants only need to

connect to one bank in

order to collect payments

from customers via 42

Banks in Malaysia.

The Way To Go

Bank B Bank C ..n Bank A

Customer Customer Customer Customer

Customers have a

consistent payment

experience across

all Banks.


Billers Benefits

Instant Notification Immediate notification of customer payments

Credit Card Enabled Payments from CASA and Credit Card

Easy Access Connect with only 1 Bank to collect payments via 42 Banks

Reduce Payment Errors Online validation reduces incorrect payment information

One Rate 1 Fee per transaction by 1 Bank

Simplify Reconciliation Consolidated report covering all JomPAY payments

JomPAY – Pay Bills The Easy Way A quick and convenient solution to pay and collect payments



What is FPX?

It is a CONVENIENT, SECURE and COST EFFECTIVE e-commerce payment system based on internet banking for online businesses/stores.


FPX Participating Banks

Two types of FPX transaction model:

• B2C – Individual payments

• B2B – Corporate payments

Current participating Buyer Banks:

• 7 B2C (Individual) Buyer Banks

• 7 B2B (Corporate) Buyer Banks

Future participating Buyer Banks:

• Bank Kerjasama Rakyat M’sia

• Alliance Bank

• Kuwait Finance House

• United Overseas Bank (UOB)

• HSBC Bank

• OCBC Bank

http://images.google.com/imgres?imgurl=https://www.bankislam.biz/images/eng/tile01.jpg&imgrefurl=https://www.bankislam.biz/menufiles/ENG/info/mastercard.html&usg=__G2lxBkT6YSvIarfo5k5pNlEJa5U=&h=82&w=210&sz=5&hl=en&start=46&um=1&tbnid=YBR66fgNhuplGM:&tbnh=41&tbnw=106&prev=/images?q=Bank+Islam&start=36&ndsp=18&um=1&hl=en&rlz=1T4HPND_en___MY213&sa=N


FPX Participating Merchants

Mainly e-commerce & Government

More than 1,000 live participating merchants (B2C & B2B)


FPX Transaction Journey


FPX Key Features & Value Proposition

REAL TIME PAYMENT…

Enables real-time debiting of Current or Savings Account from multiple banks & direct crediting into merchants’ account by banks;

WIDE PAYMENTS…

Both payments from retail (B2C) and corporate (B2B) customers are supported;

SINGLE INTEGRATION…

Direct access to all major Internet banking banks with single integration

EASE OF RECONCILIATION…

Provides payment information to facilitate ease of reconciliation

via a single channel;


FPX Key Features & Value Proposition (cont’d)

SECURITY…

Provides highest level of security, SSL and PKI enabled

AVAILABILITY…

Currently available 24 hours daily for majority of banks.

COST-EFFECTIVE…

It is more cost-effective option as compared to other card payments.

ONLINE STATUS…

Convenient real-time transaction status information

AUTOMATED…

Automated debit reversal feature for B2C

LOW RISK…

No chargeback – reduced merchant risk and liability


FPX Key Features & Value Proposition (cont’d)

No. Description FPX Credit Card

1. One-time Registration Fee Nil RM300 – 400

2. Set-up & Annual Maintenance Fees

Nil RM500 – 700 p.a.

3. Transaction Fee per txn charged by banks

RM0.50 – 1.50 Flat

1.8 – 2% of Transacted Value

Cost comparisons Vs. Card Payments:

No. Description FPX (@RM0.50) Credit Card (@2%)

1. Total Transaction Fees RM15,000 120,000

2. FPX cost savings per month RM105,000

Estimated Cost Savings by FPX:

Assumptions:

• Average ticket/bill size of RM200 per transaction

• Total transaction volume of 30,000 per month



What is MyDebit?

A payment application residing in all ATM cards issued by banks in Malaysia.

Used for purchases at POS terminals at over 200,000 terminals nationwide.

Everyone has MyDebit with over 40 million enabled cards in Malaysia.

Transaction is secure using ATM PIN.


Benefits & Value Propositions of Using MyDebit

Interbank

payment

facility

Secure,

with on-line

PIN

verification

No

charge back

Added

security

with chip

technology

Fraud free;

face-to-face

transaction

Consumer

• No need to carry cash

• No need to queue at ATM

• No loose change, immediate access to funds in the bank account

Merchant

• Reduce risk and cost of cash handling (Burglary, counterfeit bank notes, CIT cost, insurance cost)

• Increased sales

• Customer convenience

• Lowest cost among all payment cards

• Daily settlement


MyDebit – Participating Members

Currently MyDebit has 23 members including Islamic arm and 4 third-party-acquirers


With Bank Negara Malaysia’s Payment Card Reform which takes effect from 1 July 2015, you will see reductions in MDR and Domestic debit will become even more cost-effective:

Cost-Saving Tip: When a customer presents a Co-badged Card, train your cashiers to route the payment as a Domestic Debit transaction to enjoy cost savings

Domestic Debit International Debit Credit Card

Current MDR 1.00 – 1.20% 1.80 – 2.20% 1.80 – 2.20%

MDR after Reforms (projected) 0.35 – 0.55% 0.80 – 1.00% 1.60 – 2.00%

Up to 55% Cost Savings

Up to 72% Cost Savings

Domestic Debit Saves You Money – up to 72% Cost Savings


Regulatory Developments – BNM’s Payment Card Reform

Bank Negara Malaysia’s Payment Card Reform was issued on 23 December 2014 aims to substantially grow debit card acceptance

Equal Prominence of Logos on Card

Merchant to default routing to

MyDebit

To ensure merchants and cardholders are aware of the

multiple debit apps on the card Merchants must be able to choose their preferred card

payment network

In the interest of national economic efficiency, all transactions involving debit cards issued in Malaysia are routed to the more cost effective national domestic debit scheme

Merchants may seek approval to opt out of this default routing. Merchants needs to be informed by banks of the higher costs of other payment debit network

Vs “Brand A”


MyDebit – Summary Moving Forward

Rebranding of local debit card scheme.

40 million cards will be re-issued with the new branding and contactless feature.

A new contactless feature.

Wider acceptance

points.

800,000 POS terminals, of which 240,000 contactless

by 2020.

Cheaper acceptance

costs.

Lower transaction cost.

4 3

2 1


Documents

e-Payment Solutions for Businesses: Saving Costs and ...dlm.skmm.gov.my/dlmskmmgovmy/media/General/pdf/My... · e-Payment Solutions for Businesses: Saving Costs and Improving Efficiency’