ACI Identifies Malaysia as The World’s Top 5 Fastest Growing Real Time Payments Market

Malaysia has emerged as one of the most sophisticated real-time markets in the world, according to the third edition of the “Prime-Time for Real Time 2022” report.

The report was published by ACI Worldwide, in partnership with GlobalData, a data and analytics company, and the Center for Economics and Business Research (Cebr).

According to the report, Malaysia’s real-time payments journey has been fast, distinctive, and sophisticated.

It encompasses speedy adoption built on low-value transactions, rapid evolution towards more sophisticated and value-added services, and a government focused on driving adoption.

Much of the country’s success comes from a concerted effort by the government, central bank, national switch, and industry to modernise the country’s real-time payments infrastructure and harmonise the nation’s payments structure.

The report – tracking real-time payments volumes and growth across 53 countries – includes an economic impact study for the first time, providing a comprehensive view of the economic benefits of real-time payments for consumers, businesses, and the broader economy across 30 countries. The report covers all G20 nations, excluding Russia.

Malaysia emerged as the 5th fastest-growing real-time market, globally, with a CAGR of 26.9%.

Key highlights in Malaysia’s real-time payments landscape

Malaysia had recorded 1.1 billion real-time payments transactions in 2021, facilitating an estimated US$434 million cost savings for businesses and consumers, and unlocking US$364 million of additional economic output, equivalent to 1.11% of GDP.

According to the report, Malaysia is exceptional in the speed with which it has implemented nationwide real-time payments, and its rapid adoption by banks and non-bank participants

Malaysia’s real-time journey began in December 2018, with the arrival of a new real-time payments system, DuitNow, introduced by national payments network and central infrastructure provider, PayNet.

The new, modernised system, built on the latest interoperable, global, and open payments messaging standard, ISO 20022 expanded basic real-time low value account transfers to include transfers via mobile phones and ID numbers.

It also supported online payments, in store QR code-based payments, future-dated and recurring payments, and real-time cross-border payments with ASEAN.

Recent innovations have included consent management platforms for real-time debits, ‘DuitNow Request’. Future services include Know Your Customer (KYC) digital ID compatibility.

The report forecasts, increasing consumer awareness, a growing preference for mobile payments, and the abundance of DuitNow services and features, will result in real-time payments volume growth of CAGR of 26.9% from 2021-2026

“Malaysia is the perfect example for other ASEAN countries on how to establish, align, and drive adoption of a modern real-time payments network.

 

By opting to form its real-time network on ISO 20022, it is rapidly becoming one of the most harmonized and sophisticated real-time payment environments in the world – and a perfect launchpad to accelerate adoption as well as provide a host of new and value-added services.”

said Chee Cheng Ong, VP and Head of ASEAN, ACI Worldwide.

“Asia-Pacific remains at the forefront of real-time payments innovation as its real-time base pivots towards larger volume transactions and more sophisticated services for our businesses and consumers.

 

The next stage of evolution for the region is to develop linkages to provide a truly pan-regional real-time infrastructure, unlocking much greater economic benefit and opening up the formal financial sector to the region’s vast unbanked and underbanked population.”

said Leslie Choo, Managing Director of Asia-Pacific, ACI Worldwide.