Central bank of Malaysia has officially taken a strategic step to transform their digital payment ecosystem. The monetary authority decided to phase out closed-loop QR payment systems owned by individual service providers over the next two years. This policy aims to create a unified and interconnected payment system, similar to the QRIS (Quick Response Code Indonesian Standard) standard that has become the backbone of non-cash transactions in Indonesia.
Based on the 'Interoperable Fund Transfer Framework' policy document, all exclusive QR networks must cease operations no later than June 30, 2028. During the transition period, financial institutions are strictly prohibited from adding new merchants to their closed systems. This step is taken to ensure that any banking application or digital wallet can be used universally across all participating outlets, so the public is no longer constrained by system limitations of specific service providers.
The primary infrastructure that will serve as the hub for this integration is the 'Real-time Retail Payments Platform' managed by Payments Network Malaysia Sdn Bhd (PayNet), which includes the DuitNow QR service. With this policy, banks and payment service providers are required to join a collective network allowing customers to make cross-platform transactions seamlessly, both between banks and to other digital wallet accounts.
Malaysia's decision reflects the effectiveness of the QRIS model proven in Indonesia. Since its launch in 2019, QRIS has facilitated more than 30 million merchants and 45 million active users. Beyond convenience for domestic MSMEs, this standardization has also facilitated cross-border transaction connectivity, including integration with payment systems in Singapore, Thailand, and Malaysia itself.
The increase in digital payment adoption in Malaysia, reaching an average of 1.5 transactions per capita daily, is the main driver of this reform. By unifying various payment channels into a single shared infrastructure, the Malaysian government hopes to strengthen the efficiency of the digital economy while increasing transaction convenience for the general public and foreign tourists, as experienced by users of the QRIS system in Indonesia.
