AWANI Review: PayNet: Driving Malaysia's Cashless, Digital Future

Summary

In this interview, Farhan Ahmed, Group CEO of PayNet, discusses Malaysia's strides towards a cashless society and digital economy, highlighting PayNet's role in creating a national payment network. He emphasizes the importance of security, inclusion, and innovation in driving digital payment adoption, with 80% of Malaysians using PayNet's services daily. The conversation also touches on the impact of COVID-19 as a catalyst for digitalization and PayNet's initiatives to combat fraud and enhance financial literacy.

Takeaways

• 😀 PayNet is a key driver in Malaysia's transition to a cashless society and digital economy, operating major retail payment systems like Meps, Jom, and DuitNow.
• 🌟 PayNet was established with a vision to consolidate payment companies into a shared infrastructure to accelerate the country's digitization.
• 🚀 PayNet serves three main purposes: providing a secure, efficient, and reliable payment system; ensuring digitalization benefits are inclusive; and promoting access to global financial innovation.
• 📈 The impact of PayNet has been significant, with 80% of Malaysians using its products daily and a tripling of merchants accepting digital payments in recent years.
• 💡 The COVID-19 pandemic acted as a catalyst for digitalization, pushing people towards digital services and highlighting the convenience of cashless transactions.
• 🌐 PayNet's infrastructure supports a robust digital economy, with benefits such as market expansion, job growth, financial inclusion, efficiency, and transparency.
• 🛡️ PayNet is investing in AI-based solutions to enhance security, predict and prevent fraud, and improve detection capabilities in the face of sophisticated scams.
• 🔒 The company has initiatives like PayNet Secure and the National Fraud Portal to protect consumers and curtail fraud, emphasizing the importance of security and trust in digital payments.
• 🌱 PayNet is focused on financial education and awareness, aiming to empower Malaysians with knowledge on digital payments and security, as well as skills for the future of financial services.
• 🌐 PayNet is also looking at international collaborations, enabling tourists to use their domestic payment apps in Malaysia, thus expanding the market for local businesses.
• 🦾 The development of generative AI is seen as transformative for society, and PayNet is actively preparing Malaysia for this future by engaging with global research and innovation.

Q & A

What is PayNet and how does it contribute to Malaysia's digital economy?

PayNet is Malaysia's National Payments Network, established with the vision to combine existing payment companies into one shared infrastructure to accelerate the digitization of the country. It operates major retail payment systems and serves to empower the nation's digital economy by providing secure, efficient, and reliable payment systems to all citizens.

How has PayNet impacted the number of merchants accepting digital payments in Malaysia?

In just three to four years with QR, PayNet has tripled the number of merchants that can accept digital payments, significantly expanding the accessibility of digital transactions for both consumers and businesses.

What are the three main purposes of PayNet according to Farhan Ahmed?

The three main purposes of PayNet are: 1) to provide a secure, efficient, and reliable payment system for all Malaysians, 2) to ensure that the benefits of digitization are inclusive and not confined to a select few, and 3) to keep Malaysians at the forefront of global innovation by providing access to the best services and products worldwide.

How has COVID-19 influenced the shift towards a cashless society in Malaysia?

COVID-19 acted as a significant accelerator for digitalization in Malaysia, pushing people to adopt digital services due to the lack of alternative options. The convenience of digital payments became apparent during the pandemic, leading to a sustained shift towards a cashless society even post-pandemic.

What are the benefits of digitization that Malaysia is currently experiencing?

Digitization in Malaysia has led to market expansion, job growth, financial inclusion, efficiency and productivity gains, and transparency in financial management. It has also reduced the high costs associated with analog transactions, such as the handling and maintenance of cash.

What initiatives is PayNet undertaking to secure digital payments and protect users from fraud?

PayNet has initiated PayNet Secure, which includes various products and services to protect users from fraud. This includes the National Fraud Portal and the National Scam Response Center, which work to identify, prevent, and curtail fraudulent activities. Additionally, PayNet is investing in AI-based solutions to predict and prevent scams.

How does PayNet plan to address the digital divide and include the underserved population in digital payments?

PayNet is working with partners like Bank Negara and educational institutions to run awareness and usage campaigns. They are also focusing on building new security features and providing education to help the underserved population become more familiar with digital banking and security.

What is PayNet's strategy for the future regarding digital payments and financial services?

PayNet's future strategy includes focusing on security and trust in digital payments, educating Malaysians on financial services, and creating a robust talent pool for the financial sector. They are also looking into open data and open banking ecosystems, international payment linkages, and the development of generative AI for various applications in society.

How does Farhan Ahmed's entrepreneurial background influence his approach to leading PayNet?

Farhan Ahmed brings his experience as an entrepreneur and his knowledge from working in large banks to PayNet, combining the best of both worlds to create a locally suited approach. His background allows him to apply technology and innovation to shape a better future for Malaysia's digital economy.

What are some of the exciting projects or initiatives that PayNet is currently working on?

PayNet is working on initiatives like PayNet Connect for open finance, Do It Now Pay It for secure online checkouts, and international payment linkages to facilitate tourism. They are also focusing on education and skill development through programs like PayNet AAR and collaborations with AWS for cloud computing and cybersecurity training.