MALAYSIAN Electronic Payment System Sdn Bhd (MEPS) expects to introduce to the market some 50,000 chip-based payment multi-purpose cards (PMPC) by the end of next month, according to its managing director Datuk Mohd Hata Robani.

However, active usage of the cards is likely only in January.
"We expect to see between four million smart cards issued by the end of next year, since there are currently many active ATM cardholders," Hata said, adding that all ATM cards would have to be replaced with chip-based cards by January 2003.

Hata told this to reporters after the signing of a memorandum of understanding (MoU) between MEPS and three companies in Kuala Lumpur yesterday They are Amquest Sdn Bhd, e-pay Sdn Bhd and Grand Dynamics Resources Sdn Bhd.
According to Hata, MEPS has also initiated discussions with foreign banks to facilitate their migration from ATM cards to PMPC.

The PMPC is a smart card that has three financial applications-ATM, Debit epos and MEPS Cash. It is part of the government ‘s plan to implement a national electronic payment transfer environment that will offer a cost-saving and convenient facilities, as well as utility for multi-sector payment usage.

Hata said the MoU was thus intended to facilitate the migration of terminals at merchant outlets to accept the chip-based smart cards and to spur the acquisition of new merchants that would operate using smart-card enabled terminals.

"Channel or outlets for PMPC usage are important to ensure its success and acceptance," he said.

The agreement with Amquest will look into the technical integration of electronic payment transactions, in particular, the possibility of making payment via the Internet using the PMPC, a television set and a dial-up connection.

"This is an interesting concept which I am confident will appeal to the Malaysian
market. It will definitely attract consumers who do not have a credit card,: Hat said.

He said consumers would be able to use MEPS cash application within their PMPC to make payments for electronic shopping within the comfort of their homes.

Meanwhile, the agreement with e-pay and Grand Dynamics Resources will enable consumers to make purchases or reload their prepaid handphones using PMPC.

Currently, e-pay provides prepaid handphone reloading facilities for all the local cellular network operators, while Grand Dynamics Resources is the distributor for all prepaid phone cards, and fast moving consumer goods to more than 6000 outlets nationwide.

Together, Hata commented that consumers would be able to enjoy the convenience of making pay-