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WorksheetsChapter 7 Payment Systems
Total questions: 18
Worksheet time: 10mins
Choose the relevant answers in the following:
Mobile wallets represent the digitized versions of credit or debit cards -
Link the user's credit or debit card to a smartphone app account
Allow users to transfer money from their bank account to a digital wallet
Cashless transactions
A physical wallet attached to the back of the mobile phone device
What are the technologies used to enable the transmission of data from the user's mobile wallet to the merchant's point-of-sales (POS) system?
radio-frequency identification
near-field communication
quick response codes
graphic processing units
Authorization is part of the security process to ensure the mobile payments performing in a safe environment. Therefore, this process will _______ users' credit or debit card numbers.
not store or transmit
store or transmit
share and analyze
not share and analyze
What is tokenization?
A process of replacing sensitive information like PAN with an algorithmically generated proxy called a token to prevent credit card fraud
The actual card data will never be exposed to the network during the payment process
It is mathematically irreversible unless accessible to the original key used to generate a token
transform data into readable algorithmic proxies in the payment process
Transform data into a form unreadable by anyone without a secret decryption key.
Encryption
Tokenization
Data monetization
RFID
Ensure privacy by keeping the information hidden from anyone from whom it is not intended, even those who can see the encrypted data
Encryption
Tokenization
Data monetization
RFID
Allow users to make payments to businesses or to each other locally or cross-border payments
Tokenization
Encryption
P2P mobile payments
NFC
Utilise huge amount of data flowing through the payment providers - generate insights into consumer spending behaviour/patterns and potential to identify and thwart fraud.
Encryption
Tokenization
Data monetization
RFID
Two types of payment systems in Malaysia are:
Systemically Important Payment System (SIPS)
Large Value Payment System (LVPS)
Retail Payment Systems (RPS)
Value Payment System (VPS)
eSpick, SAN, InterBank GIRO, Direct Debit and FPX.
Types of Retail payment systems
Types of Retail Payment Instruments
Retail Payment channels
Retail Payment Systems is ....
operated by the central bank for the transfer of high-value funds between banks and large corporations
used for processing non-urgent, low-value transactions such as consumer payments and is typically conducted in huge volumes
Wholsale Payment Systems is ....
operated by the central bank for the transfer of high-value funds between banks and large corporations
used for processing non-urgent, low-value transactions such as consumer payments and is typically conducted in huge volumes
Real-time gross settlement (RTGS)...
settle funds between accounts on a per transaction basis in real-time
settle funds between accounts at designated times of the data on a net basis
Deferred Net Settlement (DNS) ...
settle funds between accounts on a per transaction basis in real-time
settle funds between accounts at designated times of the data on a net basis
Real-time Payment System (RTPS) ...
processes the clearing and settlement of funds in real-time without having to consolidate the payments transacted in huge volume or net basis
settle funds between accounts at designated times of the data on a net basis, consolidating batch of transactions between accounts instead of settling them individually
Benefits of using RTPS from the regulator's perspective:
Adherence to their mandates - enabling payment effectiveness
Financial inclusion
Control high inflation rate
improve overall economy
card is expensive
Benefits of using RTPS from consumer's perspective:
Availability of fund
Proximity person-to-person payment - C2B, C2C, B2B fund transfer
instant confirmation - 24/7/365 fast approval of payment process
card is expensive
Benefits of RTPS from merchant's perspective:
card is expensive
availability of fund
ability to support more payment information - digitizing the reconciliations of account receivables
adherence to their mandates
