PETALING JAYA: Merchantrade Asia Sdn Bhd, a provider of money services and digital financial solutions, has entered the automated teller machine (ATM) business with the ongoing enablement of over 1,000 cash access points across Malaysia following recent approval from regulators to operate as an ATM acquirer.
The expansion is underpinned by its long-standing partnership with Visa and security services provider Safeguards.
The venture is a direct move to expand cash access where conventional financial services are lacking, especially in rural and underserved markets. The new infrastructure is projected to at once improve cash access for millions, including Malaysia’s population of migrant workers and various local communities.
Merchantrade’s ATM coverage follows a two-pronged strategy. The first is the Visa Sponsor BIN, where Merchantrade provides crucial sponsorship for Safeguards’ 1,000-plus ATMs nationwide, enabling them to accept Visa-enabled cards and immediately allowing Visa customers, travellers, credit, debit and prepaid card holders to perform cash withdrawals.
The second is the Brown Label ATM Model. Merchantrade is the first operator in the country to adopt this approach which leverages Safeguards’ existing infrastructure, including Malaysian Electronic Payment System (MEPS) functionality, enhanced with the Merchantrade brand and Visa platform. Currently Merchantrade has deployed more than 12 machines under this brown label at its own branches and targets to roll out over 200 machines, which is expected to significantly increase the company’s brand presence throughout the country.
Merchantrade said its own branded ATMs allow for both withdrawals and crucial cash deposits using MEPS and accepts all Visa enabled cards, including its flagship Merchantrade Money prepaid Visa card. A feature which is often unavailable at non-bank ATMs, providing convenience for traders and small businesses who frequently need to manage daily cash earnings for which the company targets for the machines to be placed at any premises such as grocery shops, factory areas and communal spaces.
Merchantrade Asia founder and managing director Ramasamy K.Veeran said, “The extensive reach and new facilities this network brings are critical for our customers. By embracing this two-pronged strategy, we are not just installing machines; we are expanding the financial landscape. This makes it easier for individuals, like foreign workers and small businesses, to access funds, deposit cash securely, and manage their finances where they live, work and do business. This significant investment solidifies our commitment to financial services in Malaysia.”
Visa Malaysia country manager Previn Pillay said as Merchantrade is already one of their Visa acquirers, entering the ATM sponsor and Brown Label ATM Model is a natural progression. “Merchantrade is Visa’s largest prepaid issuer in Malaysia, and this move will significantly increase Visa touchpoints in Malaysia.”
Safeguards Corporation Group CEO Darmendran Kunaretnam commented, “Entering collaboration with Merchantrade came in as the most important juncture, as the Merchantrade brand is most widely accepted within the underserved community, especially migrant workers. Merchantrade’s branded ATM machines and Visa Sponsor will be able to expand our presence as a non-bank ATM operator.”
