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Capitalising on the New Payment Card Landscape
Mr. Perry Ong Advisor, National Cards Group (NCG)
Payment System Forum and Exhibition 2015 Sasana Kijang, Kuala Lumpur
3 November 2015
Agenda
• Flashback
• Watershed Year
• Behavior shift
Perry Ong, NCG for PSF 2015 2
Flashback to Payment System Forum 2014
Perry Ong, NCG for PSF 2014 3
Evolution of Card Acceptance
Perry Ong, NCG for PSF 2014 4
We are here now!
The Revolution Started … Towards a Cashless Society by 2020
800,000 EFTPOS
1 Billion
Debit Transactions
26 Banks, Issuers and Acquirers
5
Merchants, Retailers, Services, Insurance, Wholesalers, etc
Perry Ong, NCG for PSF 2014
NATIONAL CARDS GROUP
Payment Card Reform Framework
Perry Ong, NCG for PSF 2015 6
Issued 23 Dec 2014
Source : Payment System Forum 2014
Reform Measures
• Objective & transparent setting of interchange fees
• Empower merchants to accept cost effective cards
Desired Outcome
• Affordable MDR level
• Expanded POS network
Source : BNM PSF 2014
Agenda
• Flashback
• Watershed Year
• Behavior shift
Perry Ong, NCG for PSF 2015
7
Debit Transactions
Perry Ong, NCG for PSF 2015 8
2016 2017 2018 2019 2020 2014 2015
0
100
200
300
400
500
600
700
800
900
1000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
No of Debit Transactions Actual vs Target
Target Actual
53mil Jul 2015
Target : 1 Billion
43
million
Cards
EFTPOS Progress
Perry Ong, NCG for PSF 2015 9
2016 2017 2018 2019 2020 2014 2015
0
100
200
300
400
500
600
700
800
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
EFTPOS Actual vs Target Target Actual
Acquirers’ Task Chip & Pin readiness
with full deployment by Dec 2016
Contactless terminals deployment in progress
MyDebit (MCCS) enabled terminals by 2017
Target : 800,000
256K Jul 2015
Perry Ong, NCG for PSF 2015 10
CARD PROGRESS Moving into 2016 on Chip & Pin readiness …..
Watershed year of the Payment Revolution
2016 2017 2014 2015
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17
POS Deployment Card Re-Issuance Communication
NOW
All Issuers & Acquirers Live on
Chip & Pin
100% Cards Re-Issued and Terminals
Upgraded
Full Push for 100% Chip & Pin adoption
Agenda
• Flashback
• Watershed Year
• Behavior shift
Perry Ong, NCG for PSF 2015 11
Payment Revolution at Tolls
Perry Ong, NCG for PSF 2015 12
All 92 PLUS toll plaza going cashless by 2017
Smoother flow without gates using RFID by 2018
Why the last minute rush to go Cashless?
Surge in Debit Cards in Greece
Perry Ong, NCG for PSF 2015 13
Greece’s banking crisis is having at least one positive outcome, and it’s
made of plastic. In a country where cash is king …. about 1 million debit cards have been issued by banks since the government ... Imposed controls on euro bills.
Retailers to Governments
Perry Ong, NCG for PSF 2015 14
• Immigration Department to go cashless by end 2015
• To strengthen the department’s integrity
Adoption and Payment Revolution trends from
20% of payment are made by mobile
Roles & Responsibilities
Perry Ong, NCG for PSF 2015 15
CONSUMER • Mindset change • Less cash
dependency • Use Card as tool
MERCHANT • Train frontlines • Ask for Card • Display POSM
REGULATORS / GOVT BODIES • Embrace card
acceptance • Promote Cashless • Price in Cash
INDUSTRY / SCHEMES • Intensive
Communications • Coherent &
concerted push for card & POS
• Intro Innovation
Behavior Shift
Issuers Acquirers
Merchants
Consumers
16 Perry Ong, NCG for PSF 2014
Are you capitalizing on the Payment Revolution?
Attracting the 43million cardmembers with more card privileges
Stay relevant with customers’ needs and trends
Enjoying speed of acceptance
Sell more at Lower cost of card acceptance, thus no more surcharge. Lower cost than cash handling
Riding on technology innovation via various acceptance channels
Higher ticket purchase size
Improve safety and reduce risks –lower chargebacks & fraud
Behavior Shift
17 Perry Ong, NCG for PSF 2014
How are you Leveraging on the Payment Revolution?
Safer and faster way to pay
Pay for anything, anytime, anywhere
Enjoy more privileges when you pay by card
The card in your hands is ready !
Embrace the new payment behavior
Issuers Acquirers
Merchants Consumers
Perry Ong, NCG for PSF 2015 18
Why Act Now?
43 million Debit Cards
8.3 million Credit Cards
800,000 Merchant Locations
Technology Adoption – HCE / Mobile
Industry / Card Issuers / Acquirers / Schemes + Regulators Push
Perry Ong, NCG for PSF 2015 19
CASHLESS
SOCIETY PAYMENTS
FUTURE OF
CASHLESS SOCIETY