MBSB Bank partners with Bayo Pay to digitalise construction sector payroll

By Theedgemalaysia

The signing ceremony between MBSB Bank head of transaction banking William Liew (second from left) and Bayo Pay MD Fardan Abdul Majeed (third from left), witnessed by MBSB group CEO Rafe Haneef (far left) and Bayo Pay chief commercial officer Fatin Razan Razak (Photo by MBSB)

UALA LUMPUR (June 19): MBSB Bank Bhd (KL:MBSB) said it has teamed up with Bayo Pay to digitise payroll disbursement for Malaysia’s construction sector, offering contractors "a safer and more efficient alternative to cash-based wage payments".

By offering a digital-first payroll system, MBSB Bank aims to protect contractors and workers alike while aligning with national goals to accelerate cashless adoption, the bank said in a statement on Thursday.

Bayo is a homegrown financial technology company, and it is regulated by Bank Negara Malaysia under the Payment System Act 2003, the company’s website showed.

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The solution is built on Bayo's regulated emoney platform, which allows wages to be credited directly into workers’ e-wallets, thus eliminating the operational and security risks of carrying physical cash to worksites.

MBSB Bank said the move addresses a persistent challenge in the construction industry. It noted that in recent years, there has been a rise in robberies targeting contractors transporting large sums of cash, resulting in serious injuries, unpaid workers and stalled projects.

For contractors, it offers traceable wage disbursement, streamlined compliance with labour and audit requirements, and reduced risk of fraud. For workers, particularly those unbanked or underbanked — it enables faster, more secure access to wages via mobile wallets.

MBSB Bank said the service is initially targeted at G1 to G7 CIDB-registered contractors. In the future phase, the service is expected to benefit both employers and workers across a wider range of industries.

“We’re enabling businesses to move away from high-risk, cash-based practices and giving workers a safer way to get paid," said MBSB group chief executive officer Rafe Haneef in a statement. "It’s a meaningful step forward in how payroll should be done."

MBSB Bank said the solution also opens new avenues for the bank to serve clients through bundled payroll current accounts, cash management tools, and broader financial services over time.

Bayo Pay managing director Fardan Abdul Majeed said the group is proud to work with CIDB and MBSB Bank to modernise and digitalise wage payments in the construction industry.

“This is about more than removing cash, it is about enabling trust, inclusion, and better outcomes for the entire value chain,” Fardan said.