Will merchants revert to cash payments due to DuitNow QR fees?

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Merchants May Revert to Cash Payments if DuitNow QR Fees are Implemented

Merchants may consider reverting to cash payments or setting minimum transaction limits for e-wallet and DuitNow transfers if new transaction fees for credit card payments via DuitNow QR are implemented. The Small and Medium Enterprises Association (Samenta) has urged Payments Network Malaysia Sdn Bhd (PayNet) to reconsider the introduction of these fees, which are slated to take effect from November 1. Samenta's president, Datuk William Ng, expressed that this move could feel like a betrayal after years of encouraging SMEs to adopt digital payment systems.
Background of DuitNow QR and Digital Payment Adoption

DuitNow QR is a unified QR code system that allows consumers to make payments to merchants using various e-wallets and bank applications. Its implementation aimed to streamline digital transactions and encourage cashless payments among Malaysian businesses, particularly small and medium enterprises (SMEs). Over the past few years, significant efforts have been made to promote the adoption of such digital payment methods, with SMEs investing time and resources to integrate these systems and encourage customer usage.
Concerns Regarding Transaction Fees

The proposed introduction of transaction fees, specifically a merchant discount rate (MDR) of up to 0.5 per cent on credit card payments made through DuitNow QR, has raised concerns among SMEs. Samenta argues that while an MDR has always been part of credit card payment fine print, its arbitrary imposition now feels like a reversal of previous incentives. The association believes that banks, which benefit from the retail ecosystem and commissions from other payment methods, should not add further costs to SMEs, especially as going cashless generally reduces risks and costs associated with cash management for the country.
PayNet's Clarification on Fees

PayNet has clarified that reports regarding the imposition of a RM0.50 charge on all DuitNow QR payments to merchants are inaccurate. The company stated that the merchant discount rate (MDR) was initially waived as an incentive to encourage the use of QR payments when the system was introduced in 2019, and this waiver was subsequently extended due to the Covid-19 pandemic. PayNet further specified that the stated charge does not apply to payments made to merchants or to fund transfers using personal QR codes.

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Will merchants revert to cash payments due to DuitNow QR fees?

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