Debit cards to make more profits for MasterCard in Malaysia

The latest data shows that debit card business of MasterCard will likely grow in Malaysia. More and more banks are considering potential partnership with the payment processing company. Meantime accountholders in the country having high savings rates are not welcoming credit card system. And as noted by vice-president and senior country manager for Malaysia and Brunei Jim Cheah debit cards are seen as a safer alternative to credit cards.

Bank Negara Malaysia reports that non-performing loans (NPLs) under the credit card segment decreased 12% to RM515 million at end-September in comparison with RM586 million a year ago. MasterCard debit card, a multi-application chip card with PayPass contactless payment solution, gained popularity among the cardholders since it was introduced last year. It is expected to benefit younger users who do not yet qualify for credit.

As of today Debit MasterCard is accepted by 100,000 merchants nationwide being issued by such banks as Affin Bank, Alliance Bank, EON Bank, Public Bank, RHB Bank and Standard Chartered Bank. Debit MasterCard can be used for online shopping, giving an added advantage over regular ATM debit cards. Yet Cheah noted that there was no slowdown in the issuance of MasterCard credit cards, as these cards targeted different market segments.