Malaysia recorded 1.1 billion real-time transactions in 2021, says ACI
02 Jul 2022
Malaysia achieved remarkable speed in the nationwide implementation of real-time payments (RTP), and its rapid adoption by banks.
According to ACI Worldwide in the Prime-Time for Real Time 2022 report, driving this evolution is a concerted effort from the government, central bank, national switch, and industry to modernise and innovate the country’s payment infrastructure and harmonise the nation’s payment structure.
This report leverages GlobalData’s Instant Payments market sizing data as well as insights on adoption of mobile wallets, use of online payment tools and consumer experiences of fraud from GlobalData’s Financial Services Consumer Survey.
The report said Malaysia recorded 1.1 billion real-time transactions in 2021, which resulted in an estimated cost savings of US$484 million for businesses and consumers in addition to US$394 million worth in economic output.
The software company providing real-time payment solutions said that evidently, RTP improves market efficiencies and boosts economic growth by allowing for the transfer of money between parties within seconds, rather than days.
It said despite these developments, RTP only accounts for a 4.8% share of the total payments transaction volume in 2021.
ACI said paper-based payment instruments remain the top preference, accounting for 77.4% share.
While the pace of development shows no sign of slowing, ACI sees vast opportunities in leveraging RTP adoption as a path to accelerate the transformation of Malaysia’s payment landscape.
ACI said real-time payments are at the heart of the new global payments landscape, which is evolving rapidly.
It said real-time transactions and growth forecasts continue to rise globally, with emerging countries leading the way and outpacing developed nations.
It said real-time payments offer consumers and businesses cheaper, faster and more efficient ways to pay.
Payments are increasingly becoming embedded into non-financial digital apps and services, with today’s customers looking for a hyper-connected, frictionless customer experience, said ACI.
The firm said banks are reinventing their mission-critical operating systems to compete in the new real-time, post-digital, cloud-first and data-centric business environment.
It said the financial services industry has moved beyond the tipping point of broad-based disruption and is now witnessing the realisation of those changing paradigms.
Source: The Edge Markets