Electronic payment (e-payment) is increasingly becoming our primary payment method when it comes to purchasing goods and services, whether at brick-and-mortar stores or e-commerce platforms.
We can also make payments for services provided by the government electronically. For example, if we want to pay our electricity bills here in Sarawak, we can opt for credit card, debit card, online banking or e-wallets such as Sarawak Pay and GrabPay.
There are a number of reasons why we make use of e-payment methods. It is a lot faster that traditional means like cash or cheque when it comes to performing any transaction, safer in terms of security, and more hygienic as it is contactless, especially in times of COVID-19.
Perhaps the most beneficial aspect of e-payment is the convenience it offers us, particularly with online payment in which we can utilise it wherever we are at any time we want, as long as we have access to Internet connectivity.
It is this form of customer experience that drives governments around the world to deliver more people-centric services through its adoption and use of digital technology and data.
For the Malaysian Government, it considers e-payment in context of its public service as:
“An electronic payment mode for Government/public services which is cashless (credit card, debit card, charge card, prepaid card, etc.) via multiple payment channels (point-of-sale [POS] terminal, automated teller machines, kiosks, internet banking, mobile payment, agency portals, government payment gateways, etc.).”
Promoting e-payment as the main option for a conducive, secure and efficient payment service among government agencies has been part of the Government’s agenda as it strives to transform the public sector digitally.
This is necessary not only to keep pace with the digital transformation worldwide and Malaysians heading towards a cashless society, but also to enhance the efficiency and effectiveness of its public service delivery.
Pushing for adoption of e-payment
At the Federal level, the Government has been developing guidelines and references to its agencies to implement e-payment services.
One such guideline was the Public Sector E-payment Strategic Plan (PSPSA) 2016-2020, which came in addition to the Malaysian Public Sector ICT Strategic Plan 2016-2020.
A follow-up to PSPSA 2010-2015, PSPSA 2016-2020 outlined three major objectives for the Government to achieve. They were:
- Improving e-payment environment to become more user-friendly;
- Fostering e-payment adoption to enhance level of usage and customer satisfaction; and
- Increasing customer confidence towards e-payment services.
Through this plan, the Government had managed to expand e-payment adoption to 328 out of 532 agencies or 61.6 percent in 2018, earlier than its 2020 target of 55 to 60 percent.
In that same year, the level of e-payment user satisfaction was 88.3 percent, surpassing its 80 percent target by 2020.
Although PSPSA 2016-2020 has come to an end, the Government remains resolute in driving e-payment adoption in the public sector, as the implementation continues through the MyDIGITAL initiative.
Launched in February 2021, the initiative includes the Malaysia Digital Economy Blueprint, which explains efforts, initiatives and targets to deliver its aspirations of transforming Malaysia into “a digitally-driven, high income nation and a regional leader in digital economy.”
One of the initiatives in the blueprint is for all federal and state-level agencies to provide cashless payment option by 2022.
With the Ministry of Finance Malaysia leading the effort, the initiative aims to make sure that every government agency carries out e-payment as the preferred method for more efficient, transparent and timely transactions of their services.
Among others focus areas, it also looks at increasing the number of functional POS terminals; promoting the advantages of going cashless to gain public confidence; and adopting international standards in order to ensure that every payment system is reliable, resilient and secure.
Through the initiative, the Government hopes that they can provide their citizen-customers more user-friendly ways to pay for public services without the need to be physically present at the government agency’s premise.
Examples of Government E-payment Services
myGovXchange is the Malaysian Government’s way of providing a single point of access for individuals and organisations to utilise government services.
It comprises a payment gateway hub (MGX Payment Gateway), an online payment gateway (myBayar) and an online forms gateway (myForms).
myBayar enables users to check and perform electronic transactions for various public services simultaneously, while myForms allows the public and businesses to submit forms to government agencies through a single channel.
An e-payment mobile application (app) that provides users the convenience of conducting online payment for public services delivered by government agencies through their mobile devices rather than going to the physical counter.
Currently, it is available on Google Play and the App Store.
Chances are you have seen, heard or even use JomPAY when paying bills. This one-stop online payment portal allows users to pay electronically anywhere at any time, without worrying about transaction fees.
Launched by the Central Bank of Malaysia (BNM) in April 2015, JomPAY establishes a bill payment ecosystem that is accessible to users, banks and payees.
Through this online platform, customers of the 42 participating banks can pay their bills on services including utilities, insurance, medical and education. Meanwhile, businesses and payees can use JomPAY to collect payments from their customers, save time and cost, increase cash flow, and reconcile payments received more efficiently.
