Shopping, as we knew it have changed alot since the past few years because of the advance of technology. The now accessible Internet technology have cause people to spend more time online either for information or leisure. The numbers of people shopping online also increases, together with the number of websites and portals that sell various products and services.

In Malaysia, there are some drawback to shopping online, due to no standard payment system either for merchant or buyer. Example of this is PayPal, but unfortunately, PayPal did not allows users to withdraw money from local financial institution. In Malaysia, there are are single system that eliminate the needs to perform internet banking or conventional banking before a both party can complete and close the transaction. This is very time consuming, not to mention very inconvenience.

MEPS have come with a convenience solution that is very similar with their Bankcard application. In a nutshell, this application, FPX, is a gateway that allow users to buy, sell or pay over the internet from their own bank accounts. FPX was initiated by Bank Negara and it is both secure and safe to use. Currently, all major banks in Malaysia already participate with FPX.

Problems faced by online merchant/seller in Malaysia;

1. No standard payment system that can be used by merchant and seller, eg. PayPal.
2. Cannot withdraw money from local financial institution if using PayPal.
3. Time consuming.
4. Not user friendly.
5. Transaction is not in real time.
6. No standard method or interface if doing business with multiple banks.
7. Many hidden cost.
8. Too many process.
9. Must register with a specific banks/financial institution and activate their internet banking service before you can start shopping.
10. Fraud.

The Solution.

What is FPX;

Financial Process Exchange are;
1. An “account-based” Multi-Bank Internet-Based Payment System.
2. “Direct Debiting” from Current or Savings Account.
3. “Rides” on existing banks’ Internet Banking platform.

Fully supported by;

1. Spearheaded by Bank Negara Malaysia.
2. Financial Institutions & banks.
3. Government Agencies; e.g. MAMPU, MITI, Treasury.
4. Insurance Associations, Federation of Malaysian Manufacturers etc.

Benefit of FPX;

1. Supported by Bank Negara and major financial institutions.
1. Transaction is in real time.
2. Buyer don’t need to pre register before buying online.
3. Secure and safe transaction.
4. Convenient payment anywhere, any time.
5. Hassle free and reduces cost of payment transactions.
6. Prompt confirmation and notification of debit payment status.
7. Able to conduct payment transaction from multiple internets banking account, if applicable.
8. Direct crediting of payment proceeds into the seller’s account.
9. Payment guarantee by Buyer’s bank thus eliminating chaque returns or chargeback in credit cards.
10. Able to reach wider client-base from the participating banks.

Other benefits and usage of FPX;

1. Pay bills
2. Utility payments.
3. Share & unit trust purchase.
4. Insurance Premiums.
5. License renewals.

Participating Banks;

1. Bank Islam.
2. Bank Bumiputra Commerce.
3. Public Bank.
4. Deutsche Bank.
5. Hong Leong Bank.
6. Citibank.
7. Maybank.
8. RHB.
9. HSBC.
10. OCBC.
11. Standard Chartered.

Potential e-Market Places;

1. Website and exchange portals.
Company or web portal that sells product online.

2. Company with storefront.
Corporation that target business rather then consumer.

3. Supply chain management.
Corporation that bring their suppliers and buyers together within a common Internet-based online supply chain facility

4. 3rd party aggregator.
Service providers that aggregate and manage B2B content applications and processes for their business communities needs

Important facts

1. Only 6 Certified System Integrator were registered by MEPS and Sireh & Cengkeh Terpilih is one of the lucky company
2. No registration fees. Contact your Banks for details.

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