According to The Edge, Bank Negara Malaysia (BNM) has instructed all financial institutions and payment service providers to phase out the use of closed or exclusive QR payment networks (proprietary QR) in stages, with the full transition to be completed no later than 30 June 2028.
A common interoperable payment structure will be important in Malaysia
For your information, the requirement is stated in the Interoperable Fund Transfer Framework (IFTF) policy document published by BNM on 30 June 2026. Under the policy, banks, e-wallet issuers and related parties are no longer allowed to operate or offer proprietary QR networks, but instead must use a common payment infrastructure that is interoperable.
In short, this means that payment service providers can no longer offer QR systems that can only be used within their own ecosystem. Instead, QR payments need to be supported through a shared network, such as DuitNow QR operated by PayNet, allowing users from participating banks and e-wallets to make payments using the same QR code.
With this approach, consumers no longer need to worry about whether a QR code only accepts a specific bank or e-wallet app. Merchants also don't need to display separate QR codes for each payment provider, as long as the providers participate in a common payment network.
Besides that, the new policy also requires relevant institutions to join a common payment infrastructure for domestic QR transactions. This move aims to avoid fragmentation of the payment ecosystem, strengthen interoperability, promote fairer competition and facilitate a digital payment experience for consumers and merchants.
QR payments will be standardised through an interoperable network
Moreover, BNM has set a transition period of two years until 30 June 2028. During that period, institutions that still operate proprietary QR networks will no longer be allowed to register new merchants onto the network. However, this directive does not mean that DuitNow QR will be discontinued. Rather, what will be discontinued are proprietary or exclusive QRs belonging to certain providers, while QR payments will be standardised through an interoperable network.
Personally, we feel this will make Malaysians' daily businesses and activities easier and more streamlined. That’s because everyone will be using a standardised system compared to the previous one. What are your thoughts on the news? Feel free to leave your comments below. Stay tuned to more news at TechNave.com
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