KUALA LUMPUR: Merchantrade Asia Sdn Bhd has been recognised as an approved issuer of a designated payment instrument by the Department of Labour Peninsular Malaysia (JTKSM) for the purpose of wage payments.
This is in line with the Employment (Recognised Approved Issuer of a Designated Payment Instrument) Order 2024 issued by the Human Resources Ministry.
An approved issuer will help transform the payroll process for companies that face significant challenges in opening traditional bank accounts for migrant workers and other unbanked segments.
It will eliminate cash and cheque-based payments and enable direct salary disbursements into employees' Merchantrade Money e-wallet, for example.
"Digital wage payments are gaining momentum worldwide, and we are proud to be leading this evolution in Malaysia," said Merchantrade founder and managing director Ramasamy K Veeran in a statement.
Merchantrade has established itself as a trusted brand among the migrant worker community, recording an outbound remittance turnover of RM8.15 billion in 2023.
The company has served over five million customers since its inception, through its online and brick-and-mortar channels, across its remittance, currency exchange, e-wallet, insurance and telecommunications services.
The Merchantrade Money e-wallet offers a wallet size of up to RM20,000 and comes with a suite of digital financial features such as remittances, mobile top-ups, micro-insurance, QR payments and P2P transfers.
Through a collaboration with AmBank Islamic, the integration of Merchantrade Money e-wallet (RM20,000) with an AmBank Islamic hybrid current account-i (hCA-i) (RM30,000) allows users to access a combined limit of up to RM50,000, making it the first of its kind in Malaysia.
"Expanding into digital wage solutions was a natural progression following our growth in the remittance and e-wallet space, addressing yet another critical pain point for foreign workers and other unbanked segments in Malaysia.
"Over the years, we have built a robust ecosystem tailored to the needs of this segment; thus, we believe Merchantrade is strategically positioned to facilitate the shift from cash to digital wage payments," Ramasamy said.