A month ago, I received a text message from my bank that says: “Enjoy instant transfer using a mobile number! Your mobile number will be linked to your bank account & registered for early access to DuitNow service. If you don’t want this service, reply DNNO by 18 Oct.”
I must admit that I was panicky when I received the text. I thought I’d been the target of a scam since I didn’t remember registering for such a service. It turns out that I wasn’t the only one who thought the text message was a scam.
People over Facebook were sharing the text messages they received and asking the same questions: What’s the deal with DuitNow? Why am I being registered without my knowledge? What if replying ‘DNNO’ will allow scammers to gain access to my data?
Basically, these were everyone’s major concerns regarding DuitNow. Some were even angry at being registered without their consent, as they felt their privacy was violated. While the concerns raised by Malaysians are understandable, there are also valid reasons to start using DuitNow.
Perhaps we just need some time to get used to the new service, just like how we’d adjusted ourselves with PayWave. When PayWave was first introduced, it sent a wave of panic across the nation. These days, there are probably more Malaysians using PayWave than those who don’t. After all, the service really saves us more time at the cashier!
If you’re still not convinced by DuitNow, these are 9 good reasons to start using the instant money transfer service:
1. DuitNow frees you from the hassle of memorising or keying in long bank account numbers
Having trouble remembering someone’s bank account number? DuitNow is a new fund transfer service that allows consumers and SMEs to send (or receive) money instantly and effortlessly without bank account numbers required.
Instead, you can simply send the payment by keying in your recipient’s mobile number, NRIC number, or his/her business registration number. Unlike the regular internet banking services, you’ll be able to send and receive funds instantly at any time and anywhere, 24/7!
2. The service is secure
Many people have misunderstood that the service will make it easier for scammers to compromise their bank accounts. The fact is, no one will gain access that easily, as other parties who know your mobile number, NRIC or Business Registration number can only use the numbers to direct payments to you. They cannot access your bank account using your mobile number, NRIC or Business Registration number.
3. It’s backed by Bank Negara Malaysia (BNM)
DuitNow is developed by Payments Network Malaysia Sdn Bhd (PayNet). According to The Edge Markets, Bank Negara Malaysia (BNM) is the single largest shareholder in the company and PayNet is supported by 11 major financial institutions as its joint shareholders.
4. Your data will be kept private under the secrecy provisions
Many Malaysians thought their privacy has been violated when they were pre-registered for DuitNow without their consent or knowledge. Isn’t that illegal? This means our personal data must’ve been compromised, and is now accessible by certain parties, right?
Based on a Fintech News Malaysia report, BNM has decreed that automatic opt-ins are illegal in Malaysia. However, the rule could potentially exclude PayNet. Basically, the move by PayNet, participating banks, and BNM is completely legal, as long as the move is considered a federal government measure.
According to PayNet, your personal data kept with banks is protected under the secrecy provisions of the Financial Service Act 2013. In addition, your bank shall comply with the provisions under the Personal Data Protection Act 2010.
5. About 44 banks in Malaysia are adopting this service
DuitNow would be available at 44 banks in Malaysia when it’s launched next month. “When the service is launched in December, customers may make payments by accessing DuitNow under ‘fund transfer’ menu on their respective banks’ Internet and mobile banking channels,” said PayNet Group Chief Executive Officer Peter Schiesser in The Edge Markets report.
6. No fees are charged for consumers and SMEs for transfers up to RM5,000
For consumers, there are no fees to send or receive payments. For businesses, there are currently no fees to receive payments, but banks may introduce fees in the future. For transaction above RM5,000, a 50 sen fee may be applicable. However, some banks are waiving this fee, so you’re advised to check with your respective bank.
7. It has other convenient features
Similar to the regular fund transfer service, DuitNow has convenient features that include scheduling future transfers and saving a DuitNow ID as a favourite recipient. You are also allowed to register for multiple IDs (which must be verified by your bank). Take note that one ID can only be registered to one bank account.
8. It’s a solid start towards a cashless society in Malaysia
According to a Fintech News Malaysia report, DuitNow is part of BNM’s push towards a cashless society in the country. Earlier this year, the central bank released a new policy document called the Interoperable Credit Transfer Framework (ICTF), which came into effect last July. Under this policy, real-time payments and transactions like transferring funds between digital wallets or between banks and digital wallets are made possible.
Related: 4 Major Benefits of Going Cashless!
9. Payments are sent and received instantly
As mentioned before, transfers conducted via DuitNow occur immediately and recipients will usually receive money in their bank account or e-money account instantly. With DuitNow, you no longer need to wait for two to three business days to see the money in the bank.
Is DuitNow registration required?
You don’t need to register to make payments, but you are required to do a one-time registration through your bank to link your bank account with your mobile number, NRIC or Business Registration number in order to receive payments.
If you haven’t been pre-registered for the service but are interested in using it, DuitNow will be accessible under the ‘fund transfer’ menu on your bank’s Internet and mobile banking channels.
Not ready to DuitNow? You have until November 30 to opt out
About 7 million consumers have been pre-registered for DuitNow. If you’re one of them who aren’t keen on using the service and haven’t opted out yet, you have until the end of November to opt out of the service.
Your bank must provide sufficient time until 30 November 2018 for you to decide whether to opt out, and your bank is not allowed to link your mobile number, NRIC or Business Registration number before the deadline.
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