Malaysian telco CelcomDigi announced on Wednesday it has formed an inter-industry partnership with Payments Network Malaysia (a.k.a. PayNet) to strengthen digital security in financial transactions using CelcomDigi’s open network APIs under the GSMA Open Gateway initiative.

Under the partnership, PayNet – which says it currently processes over 13 million digital transactions every day – will leverage CelcomDigi’s API to verify DuitNow transactions through secure SIM-based authentication by linking DuitNow user IDs with the user’s mobile number.

DuitNow uses mobile numbers, MyKad, or business registration numbers as user IDs for transactions. CelcomDigi said the network API-based security method will enable PayNet to make sure the mobile number linked to a DuitNow user ID is active and held by the registered account holder.

Meanwhile, tying DuitNow IDs to SIM cards adds an extra layer of security, as SIMs are unique, securely stored in a mobile device, and is not easily duplicated, making it a secure alternative to OTPs, CelcomDigi added.

CelcomDigi said that the partnership will help both companies proactively address the growing problem of online scams and fraud in the digital financial landscape, where scammers often exploit gaps in user security practices, preying on vulnerabilities in authentication and access methods.

“As scams and fraud rise – especially in the age of artificial intelligence – this initiative comes at a pivotal moment, reinforcing the need for stronger security as scammers grow more adept at bypassing traditional defences and exploiting digital vulnerabilities,” said CelcomDigi CEO Idham Nawawi in a statement.

As part of the partnership, both companies said they will also collaborate with financial institutions and the National Scam Response Centre (NSRC) via PayNet’s National Fraud Portal (NFP) to streamline handling of scam reports and share real-time fraud intelligence.

The NFP – which PayNet launched in 2024 – provides reports to CelcomDigi so it can quickly flag, block, and blacklist scam-linked phone numbers, which also prevents fraudsters from misusing flagged numbers to create new accounts.

“This partnership builds on the National Fraud Portal by adding real-time account verification through CelcomDigi, providing an extra layer of security for all users,” said PayNet’s group CEO Farhan Ahmad. “By harnessing Open APIs and collaborative innovation, we are driving a future where financial security and inclusion go hand in hand, empowering individuals and businesses to transact with confidence in an increasingly digital economy.”

CelcomDigi joined the GSMA Open Gateway initiative during last year’s Mobile World Congress in Barcelona.