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...National Addressing DatabaseIntroductionOverview

National Addressing Database (NAD)

National Addressing Database

The National Addressing Database (NAD) allows customers to register and link their accounts to a proxy of their choosing. Fundamentally, a unique proxy may be registered and linked to one account which is a one-to-one relationship. However, an account can be linked to multiple proxies which is a one-to-many relationship. These proxy rules apply even when the customer has accounts with multiple Participants.


Over the past years, proxy identifiers have become an integral part especially in countries adopting real-time payment and it is expected to become widespread across the payments landscape.


What is a Secondary Identifier or Proxy?​

Traditionally, countries use the Bank Account Number, or IBAN for international payments, as the unique identifier for transactions between banks, serving as a customer’s primary identifier with their financial institution. Proxy or secondary identifiers, like mobile phone numbers, NRIC, or passport numbers, allow customers to make payments by identifying beneficiaries without using account numbers. These proxies are linked to primary identifiers, enabling payment originators to address payments using these convenient, non-account number identifiers.


Main Drivers for the Introduction and Adoption of Secondary Identifiers​

With secondary identifiers, beneficiaries can receive payments without sharing bank account details, enhancing privacy and reducing friction. Providing less sensitive information, like a phone number, is more convenient and less error-prone than typing an account number. This simplification improves the customer experience and promotes rapid adoption of secondary identifiers. The value of these proxy services depends on the number of registered participants, with business models being developed around fee-based schemes.


Proxy Types of Malaysia Domestic Scheme

  • Mobile Phone Number
  • National Registration Identity Card (NRIC)
  • Passport Number
  • Army or Police Number
  • Business Registration Number



Mobile Number Checksum​

Applicable to: Enquiry with Secondary ID (620) with mobile number as the proxy.


During a Secondary ID enquiry, the response may include a list of masked mobile numbers, with only the last four digits exposed to assist in customer identification. However, in certain scenarios, comparing only the last four digits is insufficient for a reliable match and may lead to incorrect validation.

To address this, a mobile number checksum mechanism has been introduced. Participants are required to apply the checksum logic provided below to perform the necessary comparison. This allows participants to validate the full mobile number without exposing it, thereby improving accuracy while ensuring compliance with data privacy requirements.


How is the checksum calculated?

The check sum is calculated using a weight sum formula using Prime Numbers as its weight factor.

For Example:

The checksum for Mobile Number +60104940395 is 731.


Step-by-step:

  1. Remove the leading plus sign ("+") from the mobile number:
    +60104940395 → 60104940395
  2. Assign weight factors using consecutive prime numbers:
    2 3 5 7 11 13 17 19 23 29 31 37 ..
  3. Multiply each digit of the mobile number with its corresponding weight factor:
    (6x2) + (0x3) + (1x5) + (0x7) + (4x11) + (9x13) + (4x17) + (0x19) + (3x23) + (9x29) + (5x31)
  4. Add the products together to obtain the checksum, which is 731.


Proxy Maintenance Features​


Register

Allow associating an account number to one or several proxy identifiers

Deregister

Remove the link between an account number and a proxy identifier

Modification

Allow modify an account number and a proxy identifier

Suspend

Allow suspend an account number and a proxy identifier

Transfer Bank

Allow transfer of a proxy to another Participant





National Addressing Database (NAD) is for​


Issuer

Originating Financial Institution [OFI]






DuitNow Transfer

Pay by Proxy

Pay by Proxy offers an alternative way for customers to make payments using a registered Proxy ID, such as a mobile number, NRIC, passport number, army number, or business registration number.


DuitNow Request

DuitNow Request

A service that allows payees to send digital payment request to collect funds from a payer. DuitNow Request service is available via eWallet, mobile and internet banking.


DuitNow Cross Border QR

Cross Border Outbound QR

Enables customers with a foreign Bank Account to make payments via their chosen mobile banking appilication by scanning the QR code generated by local merchants in Malaysia.

Cross Border Inbound QR

Enables Malaysians abroad to make payments via their mobile banking or e-payment application by scanning the merchants' QR code.