Debit card business started up in Malaysia by MasterCard

This week new RHB Cash-Connect and Islamic My Cash-i debit MasterCard cards were issued to execute MasterCard’s program on providing debit services in Malaysia. At the moment MasterCard is partnering with five banks in the country to offer debit card products to customers. These banks include Affin Bank, EON Bank, Public Bank, RHB Bank and Standard Chartered.

Jim Cheah, MasterCard vice president and senior country manager reports that there are 15 million ATM cardholders in the country, of whom about five million already have two credit cards. Apart from the credit cardholders, the potential market size for MasterCard’s debit card could be 10 million or more.

According to Cheah debit cards will not substitute credit cards as it is clear that the market is divided into separate sectors though there is some overlap between the two segments.

Meantime RHB Bank Bhd’s debit system is a world’s first in utilizing MasterCard’s new “multi-application EMV combi mc2” debit card and design for both its consumer and Islamic debit cards.

Renzo Viegas, RHB Bank’s retail banking head notes that 200,000 debit cards are expected to be issued to both new and current customers in the first year of operation while underlining that the market share of the debit business cannot be foreseen with accuracy.

"As you know debit cards in Malaysia are in its early stages, so it’s not really about market share right now, but it’s about making sure the entire community migrates into electronic payments," he said.

Cardholders of RHB Bank debit cards can use them at any retailer around the world accepting MasterCard. Besides, with the cards customers can withdraw cash from any machine under the MEPS or MasterCard Cirrus networks.