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Consumer Payments Country Snapshot: Malaysia 2016

Consumer Payments Country Snapshot: Malaysia 2016

Summary

Malaysian payments market is showing signs of change as it slowly move towards digital payments. In spite of cash use remaining relatively high, new payment technologies will progressively gain momentum. The key opportunity is to provide products and services that are as easy to use, convenient, and secure as cash in order to actively promote digital payments. The growth of POS terminal penetration, the complete migration to EMV standards with contactless functionality, and significant recent developments in the e-commerce environment have all contributed to the ongoing digital transformation of this market.

While cash remains an important payment tool in Malaysia, cards will be used more frequently as the move to non-cash payments accelerates. Providers should promote card adoption and use merchant partnerships, reward programs, and benefits to encourage card use, while educating Malaysian consumers about the advantages of using payment cards over cash.

Malaysia’s e-commerce market is forecast to report a CAGR of 16% over 2016-21, larger than most other Southeast Asian markets (only behind Indonesia). This will be positively influenced by the implementation of the Digital Free Trade Zone, launched in March 2017 by the country’s digital governmental agency, the Malaysia Digital Economy Corporation, in partnership with Chinese giant Alibaba.

Both contactless card awareness and usage gradually increased during 2013-16, highlighting that Malaysia’s contactless card market is gradually gaining momentum. While contactless card technology in Malaysia has currently reached penetration of just over 37%, the complete migration to EMV standards with contactless functionality and educational campaigns by Malaysia’s central bank are expected to increase contactless card penetration among Malaysian consumers.

The report Consumer Payments Country Snapshot: Malaysia 2016 examines the consumer payments market in Malaysia, considering payment cards, online payments, P2P payments, and newer payment technologies such as mobile wallets and contactless. This report also examines the main regulatory players in the Malaysian market.

In-depth, this report provides the following analysis -

  • Analyzes the consumer attitudes to financial services by lifestage.
  • Analyzes the major payment card types in terms of both card holding and usage.
  • Identifies the major competitors in card issuing and how their positions in the market have changed over the last five years.
  • Considers consumer attitudes towards P2P tools, mobile payment tools, and contactless cards, and how companies in Malaysia are deploying these tools to meet customer needs.
  • Explores the online payment market in Malaysia by merchant type and payment tool, as well as providing a five-year forecast for the development of the market.
Companies mentioned in this report: Visa, Mastercard, Maybank, Alibaba, CIMB Bank, RHB Bank, MEPS, American Express, Bank Simpanan Nasional, Hong Leong Bank, Touch N Go, Public Bank, AEON, Lazada Malaysia, Western Union, Samsung, 11street Malaysia, Lelong.my, Zalora Malaysia, eBay Malaysia, Qoo10 Malaysia, Hermo, Gemfive, MySale Malaysia.

Scope
  • Providers should promote card adoption and use merchant partnerships, reward programs, and benefits to encourage card use, while educating Malaysian consumers about the advantages of using payment cards over cash.
  • Although of moderate size in terms of absolute value, Malaysia’s e-commerce market is forecast to report a CAGR of 16% over 2016-21, larger than most other Southeast Asian markets (only behind Indonesia).
  • While contactless card technology in Malaysia has currently reached penetration of just over 37%, the complete migration to EMV standards with contactless functionality and educational campaigns by Malaysia’s central bank are expected to increase contactless card penetration among Malaysian consumers.
Reasons to buy
  • Understand the key facts and figures in the consumer payments market in Malaysia.
  • Learn what trends drive consumer behavior at the macro level and plan your strategy accordingly.
  • Find out what products the major competitors are launching in the market.
  • Discover consumer sentiments towards various payment tools in the Malaysian market and use this knowledge to inform product design.


  • Executive Summary
  • MEGATRENDS
    • Megatrends: Lifestage Analysis
  • PROXIMITY PAYMENTS
    • Payment Cards: Market Sizing and Forecasting
    • Payment Cards: Market by Merchant Type
    • Payment Cards: Credit Card Debt
    • Payment Cards: Schemes
    • Payment Cards: Issuers
    • Alternative & Emerging Payment Tools: Prepaid Cards
    • Alternative & Emerging Payment Tools: P2P Payments
    • Alternative & Emerging Payment Tools: Contactless Cards
    • Alternative & Emerging Payment Tools: Mobile Proximity Payments
  • REMOTE PAYMENTS
    • Online Commerce: Market Sizing & Forecasting
    • Online Commerce: Market by Merchant Category
    • Online Commerce: Market by Payment Tool
  • PAYMENTS INFRASTRUCTURE
    • POS Terminals & ATMs
    • Regulatory Environment
  • APPENDIX

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