Corporate clients will now benefit from real-time fund transfers, making cheque-based processing a thing of the past
European bank helps transform corporate payments in Malaysia. Source: shutterstock.com
Deutsche Bank announced it will process payments for corporate clients using Malaysia’s instant credit clearing system, DuitNow (do-it-now).
This real-time fund transfer platform transforms how corporate clients make payments and receive funds nationwide. DuitNow moves the country from a cheque-based payment infrastructure to one where any participant in the instant credit clearing system can process payment instantly at a much lower cost.
DuitNow facilitates payment processing through a concept called “Any ID”, where companies no longer have to maintain the bank details of their employees in order to pay them. All they need is their employee’s National ID number to remit salaries or reimbursements. Even if employees change their bank accounts, funds are automatically routed to their preferred account linked to their National ID number (this is called payment by proxy).
Instant Payment by proxy has already been introduced in Singapore, Thailand and Malaysia to help facilitate the first cross-border flows within ASEAN in the next 12 months. DuitNow is another key step forward in achieving a regional real-time payment ecosystem for ASEAN.
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