Introduction
Malaysian Electronic Clearing Corporation Sdn Bhd (MyClear) was incorporated in
October 2008 as a wholly-owned subsidiary of Bank Negara Malaysia to provide
interbank payment settlement and securities services
– Real-time Electronic Transfer of Funds and Securities System (RENTAS)
– National Electronic Cheque Information Clearing System (eSPICK)
– Securities Services (FAST)
© 2015 MYCLEAR CONFIDENTIAL 4
JomPAY is a service that allows
your customers to easily pay
your bills and invoices using
bank accounts or credit cards at
42 banks.
JomPAY is available on Internet
& Mobile Banking.
JomPAY was developed as a
national initiative involving
Billers, Banks, Bank Negara
Malaysia, MyClear and
Government.
What is JomPAY
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Current Scenario on Connection with Banks
Bank A
Bank B
Bank C
Bank D
Bank E
Bank F
Bank G
Bank Z
…
Customer
Customer
Customer
Customer
Customer
Customer
Customer
Customer
Customer
Customer
Customer
Customer
Customer
Customer
Business
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Online Payment Process Biller
Biller Bank
Merchants only need to
connect to one bank in
order to collect payments
from customers via 42
Banks in Malaysia.
The Way To Go
Bank B Bank C ..n Bank A
Customer Customer Customer Customer
Customers have a
consistent payment
experience across
all Banks.
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Billers Benefits
Instant Notification Immediate notification of customer payments
Credit Card Enabled Payments from CASA and Credit Card
Easy Access Connect with only 1 Bank to collect payments via 42 Banks
Reduce Payment Errors Online validation reduces incorrect payment information
One Rate 1 Fee per transaction by 1 Bank
Simplify Reconciliation Consolidated report covering all JomPAY payments
JomPAY – Pay Bills The Easy Way A quick and convenient solution to pay and collect payments
© 2015 MYCLEAR. ALL RIGHTS RESERVED. 10
What is FPX?
It is a CONVENIENT, SECURE and COST EFFECTIVE e-commerce payment system based on internet banking for online businesses/stores.
© 2015 MYCLEAR. ALL RIGHTS RESERVED. 11
FPX Participating Banks
Two types of FPX transaction model:
• B2C – Individual payments
• B2B – Corporate payments
Current participating Buyer Banks:
• 7 B2C (Individual) Buyer Banks
• 7 B2B (Corporate) Buyer Banks
Future participating Buyer Banks:
• Bank Kerjasama Rakyat M’sia
• Alliance Bank
• Kuwait Finance House
• United Overseas Bank (UOB)
• HSBC Bank
• OCBC Bank
© 2015 MYCLEAR. ALL RIGHTS RESERVED. 12
FPX Participating Merchants
Mainly e-commerce & Government
More than 1,000 live participating merchants (B2C & B2B)
© 2015 MYCLEAR. ALL RIGHTS RESERVED. 14
FPX Key Features & Value Proposition
REAL TIME PAYMENT…
Enables real-time debiting of Current or Savings Account from multiple banks & direct crediting into merchants’ account by banks;
WIDE PAYMENTS…
Both payments from retail (B2C) and corporate (B2B) customers are supported;
SINGLE INTEGRATION…
Direct access to all major Internet banking banks with single integration
EASE OF RECONCILIATION…
Provides payment information to facilitate ease of reconciliation
via a single channel;
© 2015 MYCLEAR. ALL RIGHTS RESERVED. 15
FPX Key Features & Value Proposition (cont’d)
SECURITY…
Provides highest level of security, SSL and PKI enabled
AVAILABILITY…
Currently available 24 hours daily for majority of banks.
COST-EFFECTIVE…
It is more cost-effective option as compared to other card payments.
ONLINE STATUS…
Convenient real-time transaction status information
AUTOMATED…
Automated debit reversal feature for B2C
LOW RISK…
No chargeback – reduced merchant risk and liability
© 2015 MYCLEAR. ALL RIGHTS RESERVED. 16
FPX Key Features & Value Proposition (cont’d)
No. Description FPX Credit Card
1. One-time Registration Fee Nil RM300 – 400
2. Set-up & Annual Maintenance Fees
Nil RM500 – 700 p.a.
3. Transaction Fee per txn charged by banks
RM0.50 – 1.50 Flat
1.8 – 2% of Transacted Value
Cost comparisons Vs. Card Payments:
No. Description FPX (@RM0.50) Credit Card (@2%)
1. Total Transaction Fees RM15,000 120,000
2. FPX cost savings per month RM105,000
Estimated Cost Savings by FPX:
Assumptions:
• Average ticket/bill size of RM200 per transaction
• Total transaction volume of 30,000 per month
© 2015 MYCLEAR. ALL RIGHTS RESERVED. 18
What is MyDebit?
A payment application residing in all ATM cards issued by banks in Malaysia.
Used for purchases at POS terminals at over 200,000 terminals nationwide.
Everyone has MyDebit with over 40 million enabled cards in Malaysia.
Transaction is secure using ATM PIN.
© 2015 MYCLEAR. ALL RIGHTS RESERVED. 19
Benefits & Value Propositions of Using MyDebit
Interbank
payment
facility
Secure,
with on-line
PIN
verification
No
charge back
Added
security
with chip
technology
Fraud free;
face-to-face
transaction
Consumer
• No need to carry cash
• No need to queue at ATM
• No loose change, immediate access to funds in the bank account
Merchant
• Reduce risk and cost of cash handling (Burglary, counterfeit bank notes, CIT cost, insurance cost)
• Increased sales
• Customer convenience
• Lowest cost among all payment cards
• Daily settlement
© 2015 MYCLEAR. ALL RIGHTS RESERVED. 20
MyDebit – Participating Members
Currently MyDebit has 23 members including Islamic arm and 4 third-party-acquirers
© 2015 MYCLEAR. ALL RIGHTS RESERVED. 21
With Bank Negara Malaysia’s Payment Card Reform which takes effect from 1 July 2015, you will see reductions in MDR and Domestic debit will become even more cost-effective:
Cost-Saving Tip: When a customer presents a Co-badged Card, train your cashiers to route the payment as a Domestic Debit transaction to enjoy cost savings
Domestic Debit International Debit Credit Card
Current MDR 1.00 – 1.20% 1.80 – 2.20% 1.80 – 2.20%
MDR after Reforms (projected) 0.35 – 0.55% 0.80 – 1.00% 1.60 – 2.00%
Up to 55% Cost Savings
Up to 72% Cost Savings
Domestic Debit Saves You Money – up to 72% Cost Savings
© 2015 MYCLEAR. ALL RIGHTS RESERVED. 22
Regulatory Developments – BNM’s Payment Card Reform
Bank Negara Malaysia’s Payment Card Reform was issued on 23 December 2014 aims to substantially grow debit card acceptance
Equal Prominence of Logos on Card
Merchant to default routing to
MyDebit
To ensure merchants and cardholders are aware of the
multiple debit apps on the card Merchants must be able to choose their preferred card
payment network
In the interest of national economic efficiency, all transactions involving debit cards issued in Malaysia are routed to the more cost effective national domestic debit scheme
Merchants may seek approval to opt out of this default routing. Merchants needs to be informed by banks of the higher costs of other payment debit network
Vs “Brand A”
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MyDebit – Summary Moving Forward
Rebranding of local debit card scheme.
40 million cards will be re-issued with the new branding and contactless feature.
A new contactless feature.
Wider acceptance
points.
800,000 POS terminals, of which 240,000 contactless
by 2020.
Cheaper acceptance
costs.
Lower transaction cost.
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