AdminCelcomDigi Berhad (“CelcomDigi”) and Payments Network Malaysia Sdn Bhd (“PayNet”) have announced a groundbreaking partnership to enhance digital financial security in Malaysia. By integrating CelcomDigi’s Open Gateway with PayNet’s digital payment infrastructure, the collaboration aims to provide safer and more seamless financial transactions for Malaysians.
This partnership aligns with Malaysia’s national agenda to boost digital security and tackle the rising threats of online scams and fraud. Through Open Application Programming Interface (API) integration, CelcomDigi’s Open Gateway allows PayNet to authenticate DuitNow transactions using SIM-based verification. This innovative approach ensures that the mobile number linked to a DuitNow user ID is active and belongs to the registered account holder, providing an additional layer of security.
Datuk Idham Nawawi, Chief Executive Officer of CelcomDigi, emphasized the importance of cross-industry collaboration to protect consumers from emerging digital threats. “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,” he said.
A Robust Defence Against Fraud
At the core of the partnership is the implementation of SIM-based authentication, a security measure that offers greater protection compared to traditional methods such as one-time passwords (OTPs). Each SIM card is uniquely tied to a user’s mobile device, making it difficult for fraudsters to duplicate or manipulate.
This advanced authentication method is crucial in combating financial scams, which remain one of the most common types of digital fraud in Malaysia. PayNet, which processes over 13 million digital transactions daily, sees this partnership as a timely response to the growing sophistication of online scams.
Farhan Ahmad, Group Chief Executive Officer of PayNet, highlighted how this collaboration builds on their recent security advancements. “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,” he said.
Unlike OTPs, which require manual code entry and can be intercepted or manipulated, SIM-based authentication provides a more automated and secure method of verifying transactions. This added layer of security is expected to significantly reduce fraud incidents while fostering greater consumer trust in digital payment systems.
Real-Time Protection
A key aspect of the partnership is its integration with the National Fraud Portal (NFP) managed by the National Scam Response Centre (NSRC). This real-time fraud detection and response system allows for rapid identification and mitigation of potential scams.
Through the NFP, CelcomDigi receives reports on suspected scam-linked phone numbers, enabling them to swiftly flag, block, and blacklist these numbers. This proactive approach not only prevents fraudsters from exploiting compromised numbers but also enhances the security framework for all digital financial transactions.
By combining CelcomDigi’s telecommunications expertise with PayNet’s payment processing capabilities, the partnership aims to establish a more resilient defence against online scams. The collaborative framework also opens the door for future innovation, with both companies expressing their commitment to expanding the initiative with other financial institutions.
Safer Digital Transactions
The Memorandum of Understanding (MoU) formalizing the partnership was signed by Datuk Idham Nawawi of CelcomDigi and Farhan Ahmad of PayNet, with the ceremony officiated by YM Tengku Dato’ Sri Azmil Zahruddin bin Raja Abdul Aziz, Chair of CelcomDigi. A representative from Bank Negara Malaysia was also present, underscoring the national significance of this collaboration.
Looking ahead, both companies are focused on fostering a secure digital environment where individuals and businesses can transact with confidence. This partnership not only addresses the immediate threat of scams but also lays the foundation for continued innovation in digital security.
“As scams and fraud rise—especially in the age of artificial intelligence—this initiative comes at a pivotal moment,” said Datuk Idham Nawawi. “We look forward to working with more financial institutions to strengthen digital security and protect Malaysians across the country from emerging digital threats.”
With Malaysia’s digital economy rapidly evolving, the CelcomDigi-PayNet partnership marks a significant step towards ensuring that technological progress is matched with robust consumer protections. By prioritizing safety and innovation, the collaboration is set to reshape the digital financial landscape for the better.
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