E-Payments Becoming a Norm in Malaysia

Bank Negara Malaysia said electronic-based payments may result in savings amounting to up to 1% of a country’s economy due to lower retail payment cost versus cash transactions, theedgemarket reported. The Edge Malaysia business and investment weekly, in its latest August 14-20 issue, quoted Bank Negara payment systems policy department director Tan Nyat Chuan as saying the central bank had been advocating a cashless society as cash was costly for the economy. “A study by the European Central Bank in 2012 found that countries with high usage of cash and checks incurred an annual retail payment cost of up to 1.43% of gross domestic product, whereas countries with high adoption of electronic payments incurred an annual retail payment cost as low as 0.42% of GDP. So, going from paper-based to electronic payments could save a country up to 1% of GDP. These savings are significant,” Tan told The Edge Malaysia. He said financial technology disruption in Malaysia’s payment backdrop was inevitable as electronic-based transactions became a norm here.