E-Payment To Be Promoted As Key Medium For Economic Transactions

KUALA LUMPUR, Dec 21 (Bernama) -- E-payments will be promoted as a key medium for economic transactions and for more expedient, secure and cost effective means of moving funds, says Bank Negara Malaysia (BNM). In the Financial Sector Blueprint 2011-2020 report, BNM said the growth in e-payments has been encouraging with notable growth registered across all e-payment methods. E-payments usage per capita doubled from 22 in 2005 to 44 in 2010, with substantial growth in the usage of debit cards, which increased 8.2 times, Internet banking by 6.3 times and Interbank GIRO by 4.5 times. "In the next 10 years, the Bank aims to increase the number of e-payment transactions per capita to 200 by end 2020, from 44 transactions, recorded in 2010 and reduce cheques by more than half, from 207 million, at present, to 100 million annually," it added. BNM or Malaysia's Central Bank said measures would be undertaken to encourage switching from paper-based payments to e-payments and facilitating wider outreach of e-payments infrastructure, such as point-of-sale terminals and mobile phone banking. "The Bank will continue to provide the necessary regulatory environment to drive the migration to e-payments agenda, enhance efficiency including initiatives that will derive cost savings for the country as a whole and contribute to the payment system stability. "The benefits of migrating to e-payments is not only limited to financial efficiency gains as it also promotes a more eco-friendly environment," it said. Besides promoting e-payments, a comprehensive approach to consumer protection and education will also be introduced in an effort to promote a culture of mutual responsibility shared between consumers and financial service providers. "This includes the formulation of a new consumer credit law and targeted financial literacy programmes based on life events," it said. The central bank will also ensure adequate supply of talent equipped to handle the complexities of the new landscape through a collaboration and coordination with parties beyond the financial sector. "In this regard, a Financial Services Talent Council will be established to drive the financial sector talent development agenda and oversee and coordinate talent development efforts in the financial sector," it added. -- BERNAMA Malaysia