Payment Rail Systems
Karthikeyan Sundaram
Karthikeyan Sundaram
May 28, 2024

The role of DuitNow in Malaysia’s Payment Ecosystem

In this article, we explore DuitNow, Malaysia's innovative payment network. We'll discuss its key features, benefits, and how it is revolutionizing financial transactions across the country. Learn how DuitNow enhances payment efficiency and security, making it a vital component of Malaysia’s financial infrastructure.
The role of DuitNow in Malaysia’s Payment Ecosystem

DuitNow is an instant payment platform introduced by Payments Network Malaysia to enable fast, secure, and seamless fund transfers between individuals and businesses. Operated by PayNet, Malaysia’s national payments network, DuitNow supports various payment services, including ATM networks, FPX, bill payments, direct debits, and cheque clearing. DuitNow was launched in December 2018.

DuitNow allows users to send and receive money using unique identifiers such as mobile numbers, National Registration Identity Card (NRIC) numbers, or business registration numbers, instead of traditional bank account numbers. This feature eliminates the need for sharing bank account details during transactions, making payments more convenient and efficient. 

Users can also pay merchants by scanning a simple QR code, request money, and receive payments directly into their bank accounts.

Benefits and Process of DuitNow

DuitNow offers numerous advantages and features, making it a highly efficient payment system in Malaysia. It facilitates instant, real-time fund transfers that are both secure and reliable, supporting both individual and business transactions. DuitNow is available 24/7, ensuring accessibility at any time. The system is integrated with mobile banking and e-wallet services, enhancing convenience for users. It also supports QR code payments, simplifying transactions further. Additionally, DuitNow helps reduce transaction costs, making financial services more affordable.

DuitNow transfers are free to use for payments up to 5,000 MYR, and land instantly in the recipient’s account. If you’re sending more than 5,000 MYR there may be a small fee - but many banks waive this charge.DuitNow transfer limits do apply. Individuals can transfer up to 50,000 MYR per transaction - although your own bank and account may have lower limits than this.

When paying a merchant, customers can use the DuitNow QR feature. By simply scanning the merchant’s DuitNow QR code, payments can be made through the preferred bank account or e-wallet. DuitNow QRs are compatible with numerous banks and e-wallets, so merchants do not need to display multiple QR codes to receive payments.

Business Use Case

Imagine two companies, ABC Tech Supplies and XYZ Retailers based out of Malaysia. ABC Tech Supplies needs to pay XYZ Retailers for a shipment of office equipment. Here’s how the payment process works using DuitNow in Malaysia:

  • Initiation: ABC Tech Supplies initiates a payment to XYZ Retailers through its bank’s online platform, using DuitNow.
  • Bank Processing:ABC Tech Supplies’ bank verifies the transaction details and checks if there are sufficient funds in the account. Once confirmed, the bank sends the payment instruction through the DuitNow system.
  • DuitNow Processing:The DuitNow system processes the payment instantly, ensuring the transaction is secure and the funds are available.
  • Settlement:The payment is settled in real-time. The funds are transferred from ABC Tech Supplies’ bank to XYZ Retailers’ bank.
  • Confirmation: XYZ Retailers receives the payment in their account immediately. Both businesses receive confirmation of the transaction.


Despite its many advantages, DuitNow has some limitations. It relies on strong internet connectivity, which may not be uniformly available across all regions of Malaysia. There may be initial integration costs for businesses to adopt the system into their financial operations. Additionally, while DuitNow aims to reduce transaction costs, fees are not completely eliminated, which might still affect very small businesses or individuals. Furthermore, continuous vigilance against cyber threats and fraud is necessary to ensure the system's security.

DuitNow is transforming the payment landscape in Malaysia by offering a fast, secure, and cost-effective platform for real-time transactions. Its implementation supports businesses and promotes financial inclusion and the digital economy.