News

Malaysians to get chip-based ATM cards in February

January 29, 2003

KUALA LUMPUR, Malaysia -- New ATM cards with chips will be launched in February, according to a report in the New Straits Times.

The country's Malaysian Electronic Payment Systems (MEPS) Sdn Bhd and its 12 participating banks placed advertisements in New Straits Times and other publications to inform ATM users of the new look of their cards, which will all be called "Bankcard."

According to a MEPS official, 95 percent of Malaysia's 3,839 ATMs had been upgraded to accept the chip cards.

(See related story Asia-Pac is leading EMV adoption)

Financial institutions have been aggressively upgrading their ATMs since the fourth quarter of 2002. While chip card holders will be able to make cash withdrawals at ATMs in 2003's first quarter, the machines are also gradually being upgraded to allow e-purse loading. Bankcard will offer electronic cash payments using either e-purse, a stored monetary value payment, or e-debit at the point-of-sale.

Bankcard was initiated in 1998 by Malaysian banks under the Payment Multi-Purpose Card flagship, with the project coordination and management being undertaken by MEPS, a payment consortium owned by local financial institutions.

More than 11 million magnetic stripe ATM cards are expected to be phased out when the new chip-based card system takes over.

MEPs members are Affin Bank Bhd, Alliance Bank Bhd, AmBank Bhd, Bumiputra-Commerce Bank Bhd, EON Bank Group, Hong Leong Bank Bhd, Malayan Banking Bhd, Public Bank Bhd, RHB Bank Bhd and Southern Bank Bhd, and Islamic banking institutions Bank Islam Malaysia Bhd and Bank Muamalat Bhd.