New dig­i­tal MSB play­ers ex­pected

New Straits Times - - Business -

KUALA LUMPUR: Bank Ne­gara Malaysia is cur­rently fa­cil­i­tat­ing two com­pa­nies seek­ing to pro­vide dig­i­tal money ser­vices busi­ness (MSB) so­lu­tions through the Bank’s Reg­u­la­tory Sand­box, in­clude Peer-to-Peer (P2P) ar­range­ments lev­er­ag­ing on mo­bile ap­pli­ca­tion plat­forms.

Ac­cord­ing to Bank Ne­gara’s 2016 An­nual Re­port, the move was to fa­cil­i­tate near real-time match­ing of cus­tomer trans­ac­tions for cur­rency ex­change and money trans­fers.

Re­act­ing to the re­port, Malaysian As­so­ci­a­tion Of Money Ser­vices Busi­nesses (MAMSB) pres­i­dent Ra­masamy K Veeran said a few MSB com­pa­nies were cur­rently of­fer­ing on­line re­mit­tance ser­vices and re­mit­tance via mo­bile ap­pli­ca­tions and these com­pa­nies were see­ing sig­nif­i­cant year-on-year in­crease in the vol­ume of re­mit­tance turnover via on­line chan­nels.

“We be­lieve the adop­tion of on­line re­mit­tance ser­vice should see strong growth.

“In this re­gard, em­ploy­ers of for­eign work­ers have an im­por­tant role to play in the mi­gra­tion of salary pay­ments from cash to bank ac­count or e-wal­let, which will con­trib­ute to­wards mov­ing to cash­less pay­ments,” he told NST Busi­ness yes­ter­day.

He said some of MSB play­ers had ob­tained e-money li­cence to of­fer mo­bile wal­let ser­vices tar­geted to the mi­grant work­ers.

Bank Ne­gara re­port said re­mit­tance chan­nelled through non­bank re­mit­tance ser­vice providers ac­cel­er­ated by about six-fold from RM100 mil­lion in 2013 to RM653 mil­lion last year, a trend driven by higher re­mit­tances by small and medium en­ter­prises.

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