STRATEGIC PARTNERS
June 4, 2003
KUALA LUMPUR, Malaysia -- The Malaysia Electronic Payment System Sdn Bhd (MEPS) plans to include MEPS Cash and e-Debit applications in all 50,000 of its point-of-sale terminals to boost electronic transactions in the country.
MEPS Cash is a stored monetary value payment application (e-purse), while e-Debit is an online transaction authorization application. Both applications are available on Bankcard, a chip-based card issued by the six financial institutions associated with MEPS, according to a report in The Star.
MEPS managing director Datuk Mohd Hata Robani said that the number of electronic transactions in the country is still small and MEPS would like to see it increase.
To help achieve that goal, MEPS has appoint Card Pay Sdn Bhd as a third-party terminal acquirer, the first non-bank authorized to do so. The move is aimed at getting the general public better acquainted with electronic transactions, according to The Star.
"MEPS, together with third-party acquirers like Card Pay, will complement the financial institutions' efforts by focusing on non-credit card merchants such as mass transit, retail merchants, fast-food restaurants and food courts," Hata said.
According to Card Pay chairman Tunku Datuk Abdul Malek Kassim, the company has installed 100 terminals to date and aims to have 1,500 in a year.
"Card Pay will focus on the small- and medium-sized merchants to complement the role of the bigger acquirers and therefore bring electronic payment to all levels of society," Malek said.
More than 3 million Bankcards have been issued, and more electronic transactions were expected once all 12 million MEPS ATM cards were converted to Bankcards by the Sept. 30 deadline.
MEPS recently extended the original June 30 conversion deadline to September in order to give bank customers more time to exchange their magnetic stripe cards for the new chip-based Bankcards. (See related story Malaysia extends deadline for converting ATM cards to chip)
Hata said that merchants who accept electronic payments via MEPS Cash and e-Debit will benefit by reduced cash handling costs.
Card Pay executive director Mohamad Isa Abdullah said that merchants will pay interchange fees of between 1 percent and 1.5 percent of the value of each transaction.
