CelcomDigi Berhad (CelcomDigi) and Payments Network Malaysia Sdn Bhd (PayNet) have teamed up to enhance digital financial services for Malaysians. They are using CelcomDigi’s Open Gateway to make online transactions safer and easier for both individuals and businesses.
The main goal of this partnership is to combat online scams and fraud, which are significant issues in today’s digital banking world. Scammers take advantage of security weaknesses, and this partnership aims to close those gaps, making online transactions more secure.
Following the Open GSMA Initiative, CelcomDigi’s Open Gateway API allows PayNet to confirm DuitNow transactions using secure SIM-based authentication. This method checks that the mobile number linked to a DuitNow user ID is active and belonging to the right person. This is especially important for DuitNow, which uses mobile numbers, MyKad, or business registration numbers for transactions. By enhancing security, Malaysians can feel more confident using their mobile phones for financial transactions.
SIM-based authentication provides strong security since each SIM card is unique and securely stored in a mobile device, making it hard for fraudsters to replicate. This is crucial as banking scams are very common in Malaysia. PayNet handles over 13 million digital transactions daily. Unlike traditional methods that require entering a one-time password (OTP), which can be risky, SIM-based authentication offers a safer option.
Additionally, this partnership works with financial institutions and the National Scam Response Centre (NSRC) through the National Fraud Portal (NFP). NFP helps with managing scam reports and sharing real-time fraud information. CelcomDigi can quickly detect and block scam-linked phone numbers, preventing misuse and strengthening security for everyone.
The Memorandum of Understanding was signed by Datuk Idham Nawawi, CEO of CelcomDigi, and Farhan Ahmad, CEO of PayNet. The signing was attended by YM Tengku Dato’ Sri Azmil Zahruddin bin Raja Abdul Aziz, Chair of CelcomDigi, along with a representative from Bank Negara Malaysia.
CelcomDigi’s Chief Executive Officer, Datuk Idham Nawawi said, “This landmark collaboration between the telecommunications and payments industries is aimed at further safeguarding all Malaysians. By enabling SIM-based authentication technology, we are providing financial institutions with a more secure way to authenticate users, making digital financial transactions significantly safer. As scams and fraud rise—especially in the age of artificial intelligence—this initiative comes at a pivotal moment, reinforcing the need for stronger security as scammers grow more adept at bypassing traditional defences and exploiting digital vulnerabilities. We look forward to expanding this partnership, working with more financial institutions to strengthen digital security and protect Malaysians across the country from emerging digital threats.”
Building this commitment to financial inclusion and security, PayNet underscores the critical role of trust and fraud prevention in enabling a seamless digital payment experience.
Farhan Ahmad, Group Chief Executive Officer of PayNet, said, “At PayNet, our mission is to build a secure, seamless, and inclusive digital financial ecosystem for all Malaysians. With the 2024 launch of our real-time National Fraud Portal, we took an innovative, bold step towards protecting Malaysians. This partnership builds on the National Fraud Portal by adding real-time account verification through CelcomDigi, providing an extra layer of security for all users. By harnessing Open APIs and collaborative innovation, we are driving a future where financial security and inclusion go hand in hand, empowering individuals and businesses to transact with confidence in an increasingly digital economy.”
Together, CelcomDigi and PayNet are committed to advancing digital security, driving innovation, and expanding financial access, ensuring that Malaysians can engage in transactions with trust and ease in a fast-evolving digital economy.