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Explained: PayNet and DuitNow QR

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FMT takes a closer look at Payments Network Malaysia and its DuitNow QR service.

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Free Malaysia Today
PayNet had said it will start charging merchant fees for use of the DuitNow QR code service but Prime Minister Anwar Ibrahim insists it will not impact low-income groups.

PETALING JAYA:
On Wednesday, Payments Network Malaysia Sdn Bhd confirmed that vendors will be charged a transaction fee for payments received via the DuitNow QR code platform from Nov 1.

While PayNet asserts that the merchant discount rate is not new and won’t affect the prices of goods and services, it has ignited a debate over its implications for consumers.

FMT takes a look at PayNet, its ownership and its DuitNow ecosystem.

What is PayNet, and who owns it?

Established in 2017, PayNet is the organisation responsible for overseeing the country’s payment systems.

Its current service portfolio includes JomPAY (payment scheme for paying utility bills), FPX (direct-to-bank), eSPICK (cheque clearing system), MyDebit and others.

Bank Negara Malaysia is PayNet’s largest shareholder, while 11 financial institutions, such as Maybank, Public Bank, CIMB and others are joint shareholders.

PayNet shareholders do not receive dividends. Instead, surplus profits are systematically reinvested to bolster the nation’s financial market infrastructure and ensure accessibility and competitiveness across payment ecosystems.

PayNet’s role in DuitNow

In 2019, PayNet introduced the DuitNow service, by which users make payments scanning the DuitNow QR code displayed by merchants, businesses or individuals.

The national QR code is widely accepted by various merchants, from restaurants to roadside hawker stalls.

Designed to be interoperable, DuitNow QR can be used across different banks and e-wallet providers, such as Touch n’ Go eWallet, GrabPay and Boost, as long as they are part of the payment system.

In effect it means shops and individuals need display only the DuitNow QR to accept payments.

Recent developments and concerns

On Thursday, PayNet confirmed that a service fee on merchants is levied on debit and credit card payments, but is waived for QR payments. However, 50 sen (RM0.50) is charged on personal transfers of more than RM5,000 from one person to another using a personal QR code.

The statement came after a screenshot was widely shared showing a merchant rate of 0.25% of the transaction value when paid from a bank account, and 0.5% for credit card payments, with a minimum of one sen (RM0.01) per transaction.

So far, Public Bank and Maybank have said they will postpone imposing the fee “until further notice”, while CIMB said it would waive the fee until Dec 31.

Some MPs have called for the waiver to be maintained, while small merchants are worried about the impact on their revenue. Business groups have also urged banks to either share or absorb the cost.

Prime Minister Anwar Ibrahim has said the fee will not burden low-income groups.

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