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Payments in Malaysia 2017: What Consumers Want?

Payments in Malaysia 2017: What Consumers Want?

Summary

Malaysian payments market remains cash-reliant, but has high growth potential as it moves towards digital payments. As the government and banks started to provide basic financial and banking services by expanding banking infrastructure, launching new branches, promoting agent banking networks, and making efforts to change consumer payment habits, payment cards gradually became more accepted. 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.

To increase debit card usage, the government introduced a regulation to cap interchange fees charged by domestic schemes at 0.15% of the transaction value subject to a maximum interchange fee of MYR 0.50 ($0.11) per transaction, while debit cards issued by international schemes are capped at 0.21% of the transaction value subject to a maximum of MYR0.50.

Malaysia’s e-commerce market is anticipated to report a compound annual growth rate (CAGR) of 15% over 2017f-21e. This will be positively influenced by the implementation of the Digital Free Trade Zone (DFTZ), launched in March 2017 by the Malaysia Digital Economy Corporation in partnership with Alibaba. In addition, the April 2017 launch of Maybank2u, a new payment gateway targeting e-commerce entrepreneurs, is expected to act as a catalyst for e-commerce growth over the forecast period.

The report Payments in Malaysia 2017: What Consumers Want?, examines the consumer payments market in Malaysia, considering payment cards, online payments, P2P payments, and newer payment technologies such as mobile wallets and contactless.

Specifically, this report allows the following -

  • Analyzes 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 position in the market has 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:

Maybank, Bank Simpanan Nasional, Public Bank, CIMB Bank, Bank Islam, Citibank, Hong Leong Bank, HSBC, Visa, Mastercard, American Express, Diners Club, Bankcard.

Scope
  • While cash remains the most important traditional payment tool in Malaysia, cards will be used more frequently as the move to non-cash payments accelerates. To aid payment card growth, the central bank established the Payment Card Reform Framework (PCRF) in 2014. Under the framework, the central bank capped the interchange fees, focused on enhancing payment card infrastructure, and established the MDF.
  • The Malaysian e-commerce market has a significant growth potential. To provide impetus, the Malaysian government in March 2017, implemented the DFTZ as part of the National E-commerce Strategic Roadmap that aims to support digital services, international e-commerce, and internet-based innovations.
  • Contactless technology recorded a strong uptake in Malaysia with all major banks offering contactless cards.
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.


  • Market Overview
  • MEGATRENDS
    • Megatrends: Lifestage Analysis
  • CARD-BASED PAYMENTS
    • Payment Cards: Market Sizing and Forecasting
    • Payment Cards: Market by Merchant Type
    • Debit Cards: Market Sizing and Forecasting
    • Debit Cards: Schemes
    • Debit Cards: Issuers
    • Pay-later Cards: Market Sizing and Forecasting
    • Pay-later Cards: Schemes
    • Pay-later Cards: Issuers
    • Payment Cards: Credit Card Debt
    • Prepaid Cards: Market Sizing and Forecasting
    • Contactless Cards: Card Holding
    • Contactless Cards: Card Holder Attitudes
  • E-COMMERCE PAYMENTS
    • E-commerce: Market Sizing & Forecasting
    • E-commerce: Market by Merchant Category
    • E-commerce: Market by Payment Tool
  • ALTERNATIVE PAYMENTS
    • Alternative Payments: P2P Payments
    • Alternative Payments: Mobile Proximity Payments
    • Alternative Payments: Key Developments
  • PAYMENTS INFRASTRUCTURE & REGULATION
    • POS Terminals & ATMs
    • Regulatory Environment
  • APPENDIX

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