Malaysian Electronic Payment System Sdn. Bhd. (MEPS) is currently undertaking a RM 10 million project to create an Internet-based system called Financial Process Exchange (FPX).

The system, according to MEPS, is poised to become a national online payment gateway to facilitate domestic and cross-border payments.

MEPS managing director Datuk Mohd Hata said the company has been given the role as project manager of FPX, which is spearheaded by Bank Negara and fully supported by financial institutions, government agencies, insurance associations and Federation of Malaysian Manufacturers (FMM).

He added that when the exchange is ready, member banks of MEPS can leverage on a set of common infrastructure and payment processing systems, thus reducing operational cost.

“It can reduce risk through fund movements between establish financial institutions,” he said in Kuala Lumpur.

Mohd Hata said the exchange is able to provide complete end-to-end business transaction from order to delivery between buyers and sellers.

MEPS, he added, will start testing the exchange with six banks in three months’ time.

“Our aim is to involve all the banks in Malaysia so that more users can enjoy the benefits of the exchange,” he said.