Recently, CelcomDigi, the Malaysian telecommunications operator, announced a groundbreaking partnership with local payments provider, PayNet. This aligns with the trend of leveraging open network APIs in the telecommunications sector, a concept gaining significant traction globally.
PayNet handles over 13 million digital transactions daily, offering a vast array of payment services for individuals, businesses, and financial institutions. Key offerings include peer-to-peer payments, online and in-store purchases, fund transfers, bill payments, and more. Given its comprehensive service offering, securing transactions and combating fraud are top priorities. CelcomDigi’s open network APIs aim to enhance this security framework.
According to PayNet CEO Farhan Ahmad, “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.”
The partnership enables PayNet to utilize APIs for SIM-based authentication within its DuitNow P2P transfer service. This service permits users to send up to MYR5,000 (~$1,127) per transaction using their mobile number. SIM-based authentication ensures that the number linked to a transaction belongs to the registered account holder, providing an extra layer of security.
CelcomDigi CEO Datuk Idham emphasizes the collaboration’s significance: “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 fraud and scams rise, the need for more secure measures becomes paramount.
This partnership also establishes a closer collaboration with Malaysia’s National Scam Response Centre through PayNet’s National Fraud Portal. CelcomDigi will receive real-time fraud intelligence, allowing for swift action in identifying and blocking scam-related activities.
Ahmad stated, “This partnership builds on the National Fraud Portal by adding real-time account verification through CelcomDigi, providing an additional layer of security for all users.”
The APIs utilized in this agreement are part of the GSMA’s Open Gateway initiative. This project aims to expose and monetize network APIs, supported by major industry players like Ericsson, AT&T, and Vodafone. CelcomDigi’s active participation in such initiatives reflects its commitment to strengthening security and exploring commercial opportunities in the digital space.