Paynet all set to jump on the AI bandwagon
TRADITIONAL payments are increasingly being replaced by digital payments in Malaysia, as the nation strives towards becoming a cashless society.
This trend is especially prevalent following the onslaught of the Covid-19 pandemic, which has accelerated the transition and change in people’s views on money.
According to a Bank Negara report, e-payment adoption among Malaysians had risen to 11.5 billion transactions in 2023 from 9.3 billion in the previous year.
Despite the clear signs that e-payment is on the rise, Payments Network Malaysia Sdn Bhd (Paynet) group chief executive officer Farhan Ahmad says digital payments will not completely replace cash payments, rather both will continue to co-exist in the coming years.
Speaking with Starbizweek , he says accepting cash payments makes sense for some people, particularly for small businesses as having the ability to visualise cash in hand provides greater assurance.
“I do not see cash going away fully any time soon,” he says, while acknowledging that digital payments are still much better than cash due to the benefits of convenience, efficiency, security and data value to businesses and consumers.
The notion of digital payments being unsafe and risky is inaccurate, Farhan points out, adding that there are also risks in carrying cash in hand, as it can lead to a loss, be it accidental or theft.
Since the majority of consumers tend to opt for digital payments, businesses may lose a fraction of their earnings if these businesses choose not to offer a digital payment alternative, he says.
Paynet is a payment network and financial market infrastructure provider in Malaysia. Among the services it offers are Interbank Giro, JOMPAY, Duitnow and shared ATM network and MEPS ATM.
Recognising the vast opportunities that artificial intelligence (AI) offers, Farhan says Paynet is jumping on the technology bandwagon to strengthen Malaysia’s participation in the field.
He notes AI is becoming a ubiquitous presence in everyday life, as it revolutionises the finance industry and offers consumers a safer and more inventive platform.
One of the main challenges in advancing Malaysia’s journey towards AI, however, is the large sum of investments needed to adopt the technology.
“AI requires massive investments and raising several hundred million ringgit will not be enough,” Farhan says.
He explains that the group is currently collaborating with several researchers within the AI space, as well as from Imperial College London and Oxford University to find ways to set foot into the space and be a part of the discussion.
Farhan says the group has also inked agreements with several companies to kickstart research on AI, and that Paynet is eager to collaborate with other Asian countries for this move towards further innovation.
We have to make this country better and easier for financial technologies to come in because the opportunities that Malaysia presents are amazing, he adds.
He reveals Paynet has a few AI projects up its sleeves with a focus on security, data privacy as well as creating a localised large language model for Malaysia.
He adds that Paynet’s first venture into the world of AI will be in terms of security use cases, as it is one of the primary areas that will be exploited by malicious intentions.
Paynet is in it for the long run as the main objective of adopting AI is to use it to protect the rakyat.
“Being one of the nation’s guardians of the financial systems, I am confident in Paynet’s position as one of the top organisations and systems globally that utilise AI not only for growth, but also for the nation’s security and data privacy as well,” he says.
Moving forward, Paynet highlights the significance of achieving shared prosperity, and as a digital payment platform, it needs to have a strong and comprehensive vision for the next few decades.
In this regard, Farhan says it is imperative to have a robust public-private partnership to leverage digital payments as the true enabler of economic prosperity, as it will not only benefit the company, but also the public at large.
He adds Paynet is looking to develop new projects in Melaka, Johor and Sabah, as well as in fields that have yet to be covered as an effort to create shared prosperity and grow digital payments automatically.