their product penetration in these unserved segments since the banks are not servicing this particular segment. the qr code could be a catalyst to reach this group. to encourage qr code payment, avoid market fragmentation and broaden financial inclusion, bank negara malaysia has issued an interoperable credit transfer framework ( ictf ) for consultation. the ictf aims to connect both banks and eligible non - bank e - money issuers to ensure reachability of bank accounts and e - money accounts. for the first time in our history, customers of both banks and non - banks will soon be able to transfer funds across the network seamlessly by just referencing the mobile number and ic numbers of the recipients or scanning the qr code of the recipients. in this regard, paynet, the merged entity of meps and myclear, as the operator of the country ’ s shared payment infrastructure would provide open and fair access to its clearing system and other shared payment utilities to both banks and eligible non - bank e - money issuers. this would enhance the network multiplier effects and foster better allocation of industry resources, as market players would be able to compete based on value - added services rather than on the basis of infrastructure. in addition, the interoperable credit transfer framework would level the playing field between banks and non - bank players, by subjecting them to risk management requirements that are proportionate to the nature, scale and complexity of their business activities. the framework would enhance consumer protection and confidence in the use credit transfer services. focus on solving the last mile obstacles to enhance migration to e - payments to remain relevant, it is important for all stakeholders to step up their game to drive innovation and new use cases to accelerate the displacement of cash and cheques. paynet, as the operator of shared payment infrastructure, will facilitate the pooling of resources to develop innovative use cases to meet the evolving needs of end - users. for this to happen, paynet might need to establish an innovation lab and publish open apis to leverage on the creativity, resourcefulness and innovativeness of the fintech community. banks and non - bank players should focus on solving last mile obstacles by alleviating the ‘ pain points ’ faced by consumers and businesses. subject to the observance of data protection laws, market players should mine customers ’ data to develop innovative solutions and deliver superior customer experience. customers can now look for digital solutions that enrich their quality of life. this may necessitate entities

muhammad bin ibrahim : mobile payment – the next wave keynote address by mr muhammad bin ibrahim, governor of the central bank of malaysia ( bank negara malaysia ), at the payment system forum & exhibition 2017 " mobile payment : the next wave ", kuala lumpur, 8 december 2017. * * * welcome to the payment system forum & exhibition 2017. this year ’ s theme ‘ mobile payment : the next wave ’ is the continuation of our country ’ s e - payment transformation that started seven years ago. in 2011, we launched the 10 - year e - payment roadmap in the financial sector blueprint 2011 – 2020. various reform measures were instituted to remove pricing distortions, instill market incentives and induce competition to reduce costs in our effort to create a conducive environment to accelerate migration to e - payments. these measures have been effective in reducing malaysia ’ s usage of cheques and fostering the adoption of e - payments. the total cheque volume has declined by 42 % from 205 million cheques in 2011 to an estimated 120 million cheques in 2017. electronic fund transfers have increased from 66 million transactions in 2011 to an estimated 329 million transactions in 2017, surpassing the number of cheques issued by almost three times. at the current rate of decline, we are likely to achieve the financial sector blueprint target of reducing cheque usage to 100 million in the year 2019, one year ahead of schedule. encouraging progress has also been made in the expansion of the point - of - sale ( pos ) terminal network. the reform measures in the payment card reform framework ( pcrf ) implemented since 2015 have enhanced transparency and competition, bringing about a continued decline in the average merchant discount rates ( or mdr ). merchants have benefited from lower cost of accepting card payments, with an estimated cost savings of about rm422. 4 million from 2015 to september this year. consequently, the annual growth of pos terminals has more than doubled from about 6. 8 % for the period between 2011 and 2014, to 17 % for the period between 2015 and 2017. key trends shaping our payment landscape today since the payment forum in 2015, many developments have taken place in the payment landscape both domestically and internationally. firstly, society has become increasingly digital and connected, driven by the internet and mobile revolution. for a population of 32. 1 million in malaysia, there are 42. 8 million mobile phone subscriptions while smartphone penetration stands at 70 % and is increasing. secondly, payment technology has become