5G implementation to further boost fintech space: Mastercard

Last update: 12/11/2019

From Aishah Mohmad Afandi

SINGAPORE, Nov 12 -- The implementation of 5G in the global market, especially in the ASEAN region, is expected to boost the financial technology (fintech) space further. 

Mastercard Asia Pacific co-president Ari Sarker said the new bandwidth with fast connectivity is expected to bring the cost of doing business down, especially the cost of acquiring card terminals, as it would ride on cloud services. 

"This would be transformative for the fintech space, and would continue to be vibrant in the near future," he said in an interview with ASEAN media here today at the Mastercard office. 

Malaysia is currently taking the necessary critical steps to ensure that the government’s aspiration to introduce 5G to the country can be realised by the set target of end-2021 or 2022, making it the first ASEAN nation to experience 5G’s improved speeds. 

He added that 5G technology will also enable what 4G did not manage to execute, as 4G requires more computing power compared with the technology carried by 5G with its faster data transfer speeds.

"Coupled with artificial intelligence (AI) and machine learning, we are optimistic that we will continue to push for further financial inclusivity for everyone across regions," he said. 

He added that Malaysia has the government's support and relevant policies in place to push forward the digital agenda. 

"We have seen the rise of QR payment in Malaysia and better technology combined with the elements of AI in the day-to-day operations," he said. 

Sarker added that as the payment method evolves as it ventures outside the conventional cash and card system, security remains the top priority. 

"As technology evolves, digital payment is the biggest enabler with the rising trend of digital as well as the gig economy, which also pushes for higher financial inclusivity, which is now driven by mobile. 

"We now have rolled out ID check mobile which is backed by AI and behavioural analysis such as typing and purchase patterns, to ensure every transaction that takes place through our platform is safe and secure, which would reduce fraud in the process," he said.