The signature verification card payment transaction for cardholders will be gradually abolished to make way for the implementation of the pin and pay system on July 1, 2017.

Bank Negara Malaysia (BNM) Payment System Policy Department director, Tan Nyat Chuan, said before the full implementation, cardholders would be given six months, beginning January until June 2017, to familiarise themselves with the new system.

The pin and pay system uses a PIN enabled card that allows a card holder to make a purchase by keying in a six digit PIN, with no signature required.

It is an enhanced payment method and will make an already safe payment system even more secure.

"The targeted completion of the infrastructure rollout and card replacement is expected by Dec 31, 2016," he told reporters after the national e-payment roadshow 2016 here today.

In addition to the pin and pay system, he said, cardholders would be able to pay through the 'tap-and-go' system beginning Jan 1, 2018.

He said 44.3 million cardholders would be able to enjoy the facility, once the new system becomes operational.

"Cardholders can pay by 'tap-and-go' for low value transactions," he said.

On the e-payment, he said, from January to June 2016, cheques usage had declined 10 percent due to the rising usage of Interbank Giro (IBG) and Instant Interbank Fund Transfer (IBFT).

"IBG and IBFT transactions showed an increased growth of 18 percent and 94 percent, respectively," he said.

The roadshow was jointly organised by BNM, Association of Banks in Malaysia and the Association of Islamic Banking Institutions.