HSBC Malaysia has collaborated with GHL to implement a bespoke Direct Merchant Settlements (DMS) solution for merchant settlements between GHL and Bank Negara Malaysia (BNM), improving the disbursement infrastructure for Malaysia’s payment landscape.
Prior to the implementation of the DMS solution, GHL was faced with a unique settlement challenge i.e. heavily dependent on a manual process of verifying merchant data and payment approval to ensure that the FPX (online payments) and MyDebit settlements were processed daily.
With the co-created DMS solution, GHL was able to streamline and automate the collection of FPX, MyDebit and other payment methods (credit cards, e-wallets, QR) to local merchants in Malaysia via an automated settlement process with the
combination of Secure File Transfer Protocol (SFTP) and bank controlled accounts. It also enabled GHL to make a unified single pay-out to merchants, further improving the efficiency of GHL’s operational process in the settlement journey.
Additionally, the DMS solution provided GHL greater control on the pay-out timing and refund execution of over thousands of merchants. With the implementation of DMS DuitNow (Real time payment method), merchants were also able to receive
settlements instantly via DuitNow, thus improving their cash flow.
The platform also increased penetration in the local merchants’ space with the offering of instant settlements over 365 days. This improved working capital for local merchants was critical during both the pandemic and the current endemic stage to
ensure no disruptions impacted their supply chain.
“By implementing the DMS platform, we have significantly reduced the intensive manual operational processes in the settlement journey. Additionally, the HSBC DMS platform allows GHL to create value and differentiation for our merchant clients by streamlining our funding processes, increasing operational efficiency, reducing our funding timelines and eliminating errors. GHL is glad to be partnering with HSBC and utilising their DMS platform which can spur financial technology innovation in support of the growth of Malaysia’s payment landscape,” Kevin Lee, Chief Executive Officer of GHL Malaysia said.
“Our collaboration with GHL continues to strengthen our commitment to provide innovative digital solutions to the fast changing nature of the market that also meets the needs of our customers. At HSBC we continue to provide businesses with support beyond banking, that is, tools to streamline operations, business insights to enable informed decisions and platforms to connect to new opportunities bringing improved customer service and efficiency across the economy,” Karel Doshi, Head of Commercial Banking, HSBC Malaysia said.
HSBC Malaysia together with GHL have also won The Asset Triple A award for the “Best Payment and Collections Solution”. The award win is a testament to the collaborative partnership and HSBC’s ability to play a strong part in the client’s digital
journey.
