Conclusion: touch n go is shit and monopoly. wondering why government didn’t say anything

may be got hidden agenda. Nothing much we can do. MY is more slower adoption compare to other developed countries. Dont forget, monopoly by 1 in every aspect

It worked for me few days back. Try again maybe? Seems to be only for credit cards.

Yea, HSBC only CC.

I just recalled I added HSBC debit card before just to test 1/2 yrs back and it works but that was for card issued in Singapore. No reason why Msia debit cards not allowed if this has been successfully implemented in Singapore

Yea, most of the bank if they support ap, they also support dc

So far is it safe to use Apple Pay? In term on security strength. Nowadays too many fraud/cons cases, bit scare on too convenient payment method.

more secure as it dont share cc number with merchant

at least safer than paywave.

I mean considering PayWave is unsecure as shit(Anyone can just get a PayWave capable terminal, swipe on your banks, wallet etc etc and RM250 without limit till the daily limit of PayWave hits) an added layer to use authentication on AP to access the function seems like a no brainer no? Also if a merchant supports AP (Not Wave but direct integration), all the payment information sent to the merchant is your device's account number, exp date and CVV. Let's say the merchant database got breached(Considering even Microsoft/Google gets breaches from time to time, not saying Apple won't do the same but considering their track record.. ), the leaked database will only contain your device's account number and not your actual card info (PayWave directly reports your card number, exp date and CVV to the merchant terminal/site without masking it with device's account number, anyone can just get your card info, do some social engineering and bing, minus whatever in your account . This also applies to SP/GP with the minus of the benefit wheres there's no artificial RM250 limit.

Also about DC support in certain banks in Malaysia..
IF other countries like SIngapore supports both Debit/Credit, there's no reason that any of those banks in SG can't do the same in MY, there's 100% politics/kedekut-cy at play here where they don't even want to accept that low of a rate. In SG, all the banks literally supports both CC/DC, meanwhile only Maybank is the one supporting locally. Won't be surprised if other banks never supports DC or maybe Maybank even pulling DC support. Hopefully they don't but :/

maybe Maybank struck a deal with Apple to have exclusivity period for debit cards on Apple Pay?

so Maybank can brag they're the only ones supporting debit cards and pull new customers to sign up for MAE at the same time

PART 1/2

Debit Card Interchange fee for Malaysia
'0.21%' or 'RM0.70 + 0.01%', whichever lower (Visa & Mastercard only; Anything above RM350 will be "RM0.70+0.01%").
Debit Card Interchange fee for Australia
0.20%
Debit Card Interchange fee for the US
USD0.21 + 0.05%

(Interchange fee for Singapore don't seemed to be publicly available. Source for Debit Card Interchange Fee: Google "[Country Name] Debit Card Interchange Fee]")

Based on what I can find on Apple Pay fees:
1. The cost to issuers for debit cards is at USD0.005 per transaction (~RM0.021). (Source: Affinity Credit Union v. Apple Inc complaint)
2. Apple charge an "annual fee" to issuers at ~USD0.25 (~MYR1.05) per card enrolled into Apple Pay in addition to the USD0.005 per transaction charge. (Source: Swiss Media Outlet, FuW)
3. Apple seemed to be charging almost the same fee structure to all issuers irrespective of countries (Except for UK/EU due to the very low interchange fee there). It was reported that Australian banks are charged similar fees as their American counterpart. (Source: Australian Financial Review, Apple Pay costs for Australian banks revealed)

PART 2/2

With the information above, let's do some maths from a Malaysian Issuer point of view:
1. The user have to spend between RM500 (RM350+RM150, under the 0.21% category) and RM3,500 (under the RM0.70 + 0.01% category), both before Apple's cut of USD0.005 per transaction, to recoup that ~USD0.25 annual fee for the 1 debit card enrolled. This could be any spending done on the debit card, even outside of Apple Pay.
2. Any transaction below RM10 will be a loss to the issuer (RM10 * 0.21% = RM0.021 interchange revenue).
3. Transactions above RM350 will fall into the "RM0.70 + 0.01%" category, therefore issuer's ability to earn from interchange revenue seemed to be severely limited (e.g. RM1,000 transaction, under the "0.21%" category issuers will earn RM2.10 while under the "RM0.70 + 0.01%" category issurs will earn RM0.80 instead. The discrepancy will be wider as the transaction amount increases).

In contrast, the following is from an Australian & American Issuer point of view:
1. [US] Banks in the U.S. do not need to worry about the per transaction fee as the minimum debit card interchange fee is at USD0.21 (USD0.21 > USD0.005).
2. [US] Banks in the U.S. could recoup the annual fee once the user has spent at least USD80 on the card (USD80*0.05% + USD0.21 = USD0.25), before Apple's cut of USD0.005 per transaction.
3. [AU] Banks in Australia could recoup the per transaction fee for transactions above ~AUD4.00 (AUD4.00 * 0.2% = AUD0.008 (~USD0.005)).
4. [AU] Banks in Australia could recoup the annual fee once the user has spent at least AUD180 (AUD180 * 0.2% = AUD0.36 (~USD0.25)) on the card, before Apple's cut of USD0.005 per transaction.

Comparing Malaysia to the US & AU markets and assuming that all 3 countries' issuers paid the same fees:
1. Nominally (not taking into account exchange rate), Malaysian issuers would have harder time recouping the per transaction fee (minimum spend of 10 (in MYR) vs 4 (in AUD)).
2. Nominally (not taking into account exchange rate), Malaysian issuers would have harder time recouping the "annual fee" (minimum spend of 500-3,500 (in MYR) vs 180 (in AUD)).

We have no idea on the debit card spending distribution in Malaysia is but I suppose that banks have done the calculations based on current usage data and determined that they are not comfortable financially in offering Apple Pay for debit card users. However some banks may opt to still support it for other reasons such as future cross-selling opportunities and image/brand perception, even if it doesn't make sense financially.

Most importantly, all of the above are just Apple Pay related fees. We have yet to take into account fees such as maintenance, one-off system upgrades to support Apple Pay, and other variable cost that is needed to offer debit cards by a bank.

Now that I have made the calculations above, I really hope that Malaysian issuers have managed to negotiate a different fee structure than the one above or else not much banks would have the incentive to offer Apple Pay for Debit / Prepaid card I suppose.

TLDR: Apple Pay fee structure seemed to be the same across the world which could be a major challenge for Malaysian issuer to support Apple Pay for Debit Card users.

Totally agree on the above!!!

IIRC, some banks have done either one or even both of the following:
1. Have increased or is increasing the Contactless per transaction limit from RM250 to RM1,000.
2. Removed cumulative Contactless limit (so... basically you can tap till you hit your credit limit I suppose?).

The above 2 reasons are why I have made a decision to not bring the physical card out with me anymore once I have enrolled them into Apple Pay. At least Apple Pay would require biometrics authentication before payment as compared to no authentication in a phsical contactless card.

Ya, I also won’t bring physical card after adding into Apple Pay.

Couldn’t use Apple Pay (Visa) at one of the Korean convenience store chain.

The error message when the transaction failed IIRC was “Timed Out [Error Code]” and the terminal is a “Plug n Play” branded terminal that looks similar to the one below:


The store-keeper asked if I had a physical card beforehand and advised that Apple Pay may take a lot longer to go through. I am wondering if it’s a connection issue that has caused the “Time-Out” (affecting all card transactions) or did the store managed to “ban” all mobile contactless payments.

Just curious so how did you proceed to pay? Wave using physical card?

I abandoned the purchase and left.

The person in front of me I believe used TNG eWallet or GrabPay, went flawlessly but that was processed through the POS machine instead of the EDC terminal.

Maybe only pin and chip?.cause they want the store have Korea vibe?don’t see any paywave logo though

This post has been edited by pauper21: Jan 25 2023, 06:42 PM

If I remember correctly, this machine need physical card. Went to some boutique and custom made shop, they have this kind of machine and only able to use physical card and with pin. Not work with wave (last 2 years), not sure about the new one.