It will make way for the implementation of the PIN (Personal Identification Number) and pay system from July 1, 2017.
Bank Negara Malaysia Payment System Policy Department Director Tan Nyat Chuan said before the full implementation date, cardholders would be given six months, beginning January until June 2017, to familiarise themselves with the new system.
The PIN and pay system uses a PIN-enabled card that allows a cardholder to make a purchase by keying in a six-digit PIN, with no signature required.
It is an enhanced payment method and will make an already safe payment system even more secure.
“The targeted completion of the infrastructure rollout and card replacement is expected by Dec 31, 2016,” he told reporters after the national e-payment roadshow 2016 here today
In addition to the PIN and pay system, he said, cardholders would be able to pay through the “tap-and-go” system as their cards are progressively replaced from now until Jan 1, 2018.
He said 44.3 million cards would be replaced to allow cardholders to enjoy the facility, once the new system becomes operational.
“Cardholders can pay by ‘tap-and-go’ for low-value transactions,” he said.
On e-payments, Tan said, from January to June 2016, cheque usage had declined 10% due to the rising usage of Interbank Giro (IBG) and Instant Interbank Fund Transfers (IBFT).
“IBG and IBFT transactions showed an increased growth of 18% and 94% respectively.”
The road show was jointly organised by Bank Negara Malaysia, Association of Banks in Malaysia and the Association of Islamic Banking Institutions.