Shifting Microchip Location Triggers eKYC Scans To Fail Across Major Apps

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Governments regularly update physical identification cards to stay ahead of counterfeiters, but hardware changes often create friction for modern digital infrastructure.

The National Registration Department of Malaysia has officially rolled out its redesigned MyKad identity card. However, the physical overhaul has immediately triggered onboarding failures across popular digital banking and e-wallet platforms, leaving early adopters unable to complete automated Electronic Know Your Customer verification routines.

The verification glitches stem directly from dramatic physical design updates meant to harden security. The new card incorporates 53 anti-fraud features, moving the owner’s primary photograph from the right side to the left while relocating the embedded microchip from the front face to the back.

Automated computer vision software used by private financial institutions relies on rigid visual templates to scan physical cards. Because eKYC systems at Touch ‘n Go eWallet, Ryt Bank, AEON Bank, and GXBank were trained on the decades old layout, automated scanners routinely reject the updated physical card as invalid hardware.

The rollout has created similar friction for national digital infrastructure projects. First time users attempting online registration for MyDigital ID using the new card are encountering system errors. While the digital identity platform expects to restore full online registration support by 1 October 2026, affected citizens are currently forced to visit physical kiosks to complete manual verification.

Existing MyDigital ID users who swap to the new physical card can thankfully continue using their current digital identity certificates without interruption. Alongside the verification roadblocks, the government has quietly retired a long standing hardware convenience feature.

The new MyKad completely removes the embedded Touch ‘n Go transit chip. Commuters can no longer tap their national identity card at highway toll plazas or train gantries, forcing users to rely on dedicated physical Touch ‘n Go cards, smart tags, or mobile app features.

The National Registration Department has provided updated optical templates to third party verification software vendors, but a complete fix requires individual banks and platforms to update their local scanning engines.

In the meantime, citizens are strongly advised against rushing out to replace their existing identity cards. Existing MyKad units remain fully valid for all legal and financial uses, and keeping your older card avoids unnecessary app lockouts until digital service providers finish patching their verification software.