Changing the Payment Card Industry: Towards efficiency, transparency and more competition ( BNM Case Study )
Tan Nyat Chuan, Director of Payment Systems Policy Dept | Bank Negara Malaysia
To foster an efficient, transparent and competitive payment card industry in Malaysia, Bank Negara Malaysia (BNM) had issued the Payment Card Reform Framework (PCRF) which came into effect on 1 July 2015. Besides tackling market distortions that have curtailed the orderly development of the
payment card market, the PCRF also introduces a market incentive mechanism to spur greater expansion in the number of point-of-sale terminals and promote the debit card as a cost-effective payment instrument to displace cash.
Pursuant to the PCRF, merchants in Malaysia have enjoyed an estimated costs savings of about RM168 mil in 2016 due to the lower merchant fees. In addition, consumers have benefited from the expansion of in the POS terminal network which had increased significantly to 18.3% per annum in 2015 to 2016 compared to 4.0% per annum in 2011 to 2014.
At the GlobalPaymentSummit, Mr Tan Nyat Chuan, Director of Payment Systems Policy Department of BNM will elaborate more on the payment card reforms in Malaysia and how BNM has brought about these changes in the country, as well as what lies ahead.