Consumer Payments Country Snapshot: Malaysia 2016
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 -