The RAM Rating Services said that the rise in the popularity of mobile payments in Malaysia was not a matter of threat to the banks in Malaysia. The agency said the increased popularity of any of the other forms of widely established electronic payment systems such as mobile payments, debit cards, credit cards; etc was likely to affect the level of quality and service is provided in China.
In a statement, the service also said that even if the rise in the payment volume through mobile wallets might decrease the transactions through banks credit cards, the fee income that is earned from the card transactions only accounted for a very tiny portion of the overall earning of the bank.
It also mentioned that despite the efforts made by several wallet providers for expanding into various areas such as providing loans, but the amount that they provided was very less and the borrowers were usually small entrepreneurs and merchants who are not the main targeted clients of the banks.
The Rating service, however, acknowledged the fact the popularity of the mobile wallet service systems were spreading throughout the world and China had become the global hub for the mobile payments. In the case of other countries, different levels of adoption were observed. It said that the mobile payment system was only in the growing stage in Malaysia the competition in the market was still intense as the Bank Negara Malaysia had issued licenses to about 48 non-bank-e-money issuers.
The central bank, on the other hand, is consistent about its undertaking of promoting mobile payment with an aim to transform Malaysia into a cashless economy.