“Plug n Pay” in Malaysia: More Payment Options for Credit Card Holders

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CIMB Bank Bhd recently launched the “Plug n Pay” system in Malaysia. The bank says this is the first chip-based mobile point-of-sale (mPOS) solution in the country. With the new mPOS system, businesses just plug in the Plug n Pay card reader onto their mobile devices to enable them to use the device as a tool for accepting chip or signature-based credit and debit cards.

The Plug and Pay device is available for just RM 250 each and the associated mobile app is available on Apple’s App Store and Google’s Play Store. With the system installed, businesses can accept any MasterCard and VISA branded cards.

 

In a press release during the Plug n Pay’s launch, Dato’ Sri Nazir Razak, Group Chief Executive of the CIMB Group said “There is a growing use of credit and debit cards in Malaysia. However, the ability to accept payments from customers who prefer card payment to cash is a common business challenge. This is especially true for those who conduct business “in the field” or those who find the infrastructure costs of fixed point-of-sale solutions too prohibitive. Plug n Pay can be that game changer for these businesses. It transforms the mobile devices that are integral part of our daily lives into tools of commerce that lets the consumers pay, and businesses receive payments in a very convenient, secure and cost effective manner.”

 

The introduction of the Plug n Pay is in line with the Malaysian government’s thrust to promote the adoption of electronic payments. Nazir says Plug n Pay lets businesses handle less cash or cheques and reduce the risks associated with holding cash.

 

CIMB Bank’s introduction of its Plug n Pay system in Malaysia adds to the transaction options available to credit card holders. While credit card holders may find it easy to swipe their cards at major retailers or restaurants, this is not always the case at smaller establishments where they only accept cash.

The Plug n Pay option opens up a new way to pay with a credit card when the buyer has their credit card on hand at the retailer. Visa also has the payWave technology that lets users just wave their card in front of a secure reader to pay for goods and services. Not all Visa Cards have this feature as users need to find a special symbol on their cards to know if this option is available to them. Visa’s payWave technology is similar to MasterCard’s PayPass and the American Express’s ExpressPay service that both rely on RFID technology.

 

Aside from the well known option to swipe a card at POS systems, retailers also have another way to accept credit cards. Retailers, especially online businesses and mail-order companies, also have the option to accept credit cards using a “card not present transaction.” Card not present transactions are a major target of fraudsters and so there’s a higher transaction charge for CNP. Even with the introduction of these new payment options for credit card holders, no form of payment is totally secure so card holders are still advised to check their monthly statements for any fraudulent charges on their cards.

 

This guest’s article is written by CompareHero.com.my, the leading financial comparison portal in Malaysia. We aim to guide people on their financial matters, and help them to save money and time. Please do check our website to learn more.

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