- PayNet’s DuitNow real-time payment platform now serves over 10 million users, driving financial inclusion across Malaysia.
- Strategic partnerships with Thailand and Indonesia enable seamless cross-border QR payments, boosting regional economic integration.
PayNet accelerates Malaysia’s transition to a cashless society
Payments Network Malaysia Sdn Bhd (PayNet), the national payments network and central infrastructure provider, has achieved significant milestones in 2023. Its flagship real-time payment system, DuitNow, now processes over 50 million transactions monthly, up 35% year-on-year, cementing its role as the backbone of Malaysia’s digital economy. The platform supports peer-to-peer transfers, bill payments, and merchant transactions through interoperable QR codes.
A landmark achievement is PayNet’s cross-border expansion under the ASEAN Payment Connectivity Initiative. In collaboration with Thailand’s PromptPay and Indonesia’s QRIS, PayNet launched interoperable QR payment systems in August 2023, enabling Malaysian travelers and businesses to conduct instant transactions in Thai baht and Indonesian rupiah without currency conversion fees.
For example, a Malaysian tourist in Bangkok can now scan a PromptPay QR code using their domestic banking app, settling transactions directly in MYR. This initiative, backed by Bank Negara Malaysia and regional central banks, eliminates reliance on USD intermediaries, reducing transaction costs by 40% and processing times from days to seconds. Pilot programs in popular tourist hubs like Kuala Lumpur and Bali have already processed 1.2 million cross-border transactions worth RM 180 million ($38 million) within the first three months.
Moreover, PayNet has deepened financial inclusion through DuitNow Kiosks, a network of 3,000 self-service terminals deployed nationwide. These kiosks allow unbanked individuals to convert cash to digital wallets instantly, addressing barriers to entry for Malaysia’s underserved communities.
Paired with government initiatives like ePemula (youth e-wallet credits), this has driven a 22% increase in first-time digital payment users in 2023. PayNet’s infrastructure also supports Malaysia’s Central Bank Digital Currency (CBDC) sandbox, testing programmable money for welfare disbursements—a project poised to redefine social aid efficiency.
Simultaneously, PayNet expanded its cross-border capabilities through the ASEAN Payment Connectivity Initiative, launching QR payment linkages with Thailand’s PromptPay and Indonesia’s QRIS systems. This allows Malaysian travelers and businesses to make instant settlements in local currencies, reducing reliance on USD intermediaries. The initiative aligns with Bank Negara Malaysia’s Financial Sector Blueprint to position Malaysia as a regional fintech hub.
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Payments Network Malaysia Sdn Bhd (PayNet): A catalyst for economic growth and inclusion
PayNet’s innovations address two critical challenges in Malaysia’s financial ecosystem. First, DuitNow directly tackles the unbanked population gap by enabling mobile-based transactions without requiring traditional bank accounts – a feature used by 22% of its user base. This aligns with World Bank data showing Malaysia reduced its unbanked rate from 8% to 4% since 2020.
Second, the cross-border network slashes remittance costs from 6% to under 3%, benefiting SMEs and migrant workers. With ASEAN’s digital economy projected to hit $1 trillion by 2030, PayNet’s infrastructure positions Malaysian businesses to capture cross-border e-commerce opportunities. The system’s API-driven design also allows seamless integration with fintech apps like GrabPay and Boost, creating an ecosystem that supports 87% of Malaysia’s documented GDP flows.
Equally transformative is PayNet’s cross-border payment integration under the ASEAN Payment Connectivity Initiative. By eliminating USD intermediaries and enabling real-time settlements in local currencies, the system reduces remittance costs for Malaysia’s 2.8 million migrant workers—who sent home RM 34 billion ($7.2 billion) in 2022—from an average of 6.2% to under 2.5%.
For SMEs, which contribute 38.3% of Malaysia’s GDP, this infrastructure slashes cross-border transaction fees by 40%, enabling businesses like artisanal exporters and e-commerce sellers to compete regionally. A pilot with Indonesia’s Gojek and Malaysia’s Grab demonstrated that instant settlements cut delivery partner payout delays from 3 days to minutes, boosting driver retention by 18%. These efficiencies align with ASEAN’s goal to digitize 60% of regional transactions by 2025, fostering a unified market projected to hit $1 trillion in digital GDP by 2030 (ASEAN Economic Community).
Moreover, PayNet’s infrastructure is a catalyst for broader policy goals. Its DuitNow Kiosks—deployed in partnership with Malaysia’s Ministry of Finance—provide underserved communities with cash-to-digital gateways, supporting BNM’s Financial Sector Blueprint 2022–2026 (BNM Report), which aims for 95% digital payment adoption by 2026. The kiosks also integrate with Malaysia’s Central Bank Digital Currency (CBDC) sandbox, testing programmable welfare disbursements.
For instance, during 2023 flood relief efforts, the government channeled RM 50 million ($10.6 million) in aid via CBDC-linked DuitNow wallets, ensuring funds reached recipients within hours—a process that previously took weeks. This innovation positions Malaysia as a global testbed for blockchain-based public finance solutions.
Finally, PayNet’s API-driven architecture has spurred fintech innovation. Over 1,200 developers now leverage its open banking platform to build solutions like AI-driven cash flow analytics for SMEs and micro-insurance apps for fishermen. Such tools are critical as Malaysia transitions to a high-income nation: the World Economic Forum notes that digital financial tools could add $82 billion annually to ASEAN economies by 2025. By harmonizing accessibility, affordability, and innovation, PayNet isn’t just modernizing payments—it’s redefining economic equity in the digital age.
