18 Aug Is Malaysian really become a cashless society?
Maybe, in the future. A cashless society is one in which genuine banknotes and coins are not accepted in financial transactions. People and businesses send money to one another digitally, using credit or debit cards, electronic money transfers, or online and mobile payment systems like PayPal and Apple Pay.
According to Visa Inc., 7 out of 10 Malaysian consumers are now actively adopting contactless card payments. Moreover, based on data from the 2022 Visa Consumer Payment Attitudes survey, more than 90% of Malaysians are familiar with contactless payment methods, with nearly 70% of them utilizing them. Malaysians spent the most on contactless payments in supermarkets (53%), retail establishments (46%), and restaurants (44%).
Based on the statistics above, does cash payment are still relevant in Malaysia? As we know, cash payment is the oldest and simplest payment method that doesn’t requires any devices. Even though it still controls 39% of the payment business however cash payments method are expected to fall to 15.1 by 2025, with the rise of e-wallets, cards, and others.
As mentioned in the statistic above, what make Malaysian become a cashless society? Below are the cash payment alternatives that are expected to contribute towards Malaysia being a cashless society.
E-Wallet is a digital cash app that allows customers to securely transfer payments to businesses and allows businesses to receive/accept (and receive) payments from customers anywhere. Payment by e-wallet is currently one of the most popular transaction methods.
Besides, the number also predicts that Malaysia will lead Southeast Asia in the adoption of e-wallets with at least 50% of the population using digital wallets for daily necessities in 2022. The motivating factors are that e-wallet provides the advantages of convenience, flexibility, and security.
These are famous and most-used e-wallets in Malaysia
- Shopee Pay
- Lazada Pay
- Touch n Go
- Grab Pay
2. QR (quick-respond) code payment.
QR code payment method can be completed by a QR code scanned from a mobile app for the transaction. This served as an alternative to employing a payment terminal to conduct an electronic money transfer at the point of sale.
A study by GlobalData, a data and analytics business, has released a report suggesting that Malaysia is making strides to increase e-payments acceptance through QR-code mobile payments. QR payments (60%) were the fastest-rising type of cashless payment usage.
Looking at those increasing numbers there must have a few significant reasons why Malaysian people love to use QR pay. According to a study conducted by Universiti Kebangsaan Malaysia, one of the main reasons is, Malaysia’s local financial institutions and the finance technology sector are also becoming more active in QR mobile payments. Besides, the research also discovered that consumers prefer to use QR Pay because it is easy for users to use and follow the processes to complete a transaction and that perceived security is the key factor in predicting whether or not consumers will utilize QR mobile payments.
3. Contactless credit/debit card
This payment method enables consumers to use their debit or credit cards with RFID technology, also known as chip cards, or other payment methods to make purchases utilizing contactless payment without having to swipe, enter a PIN, or sign a receipt.
Nearly 92% of Malaysian respondents said they had made purchases using a credit or debit card. Additionally, more than three out of every four people have tried becoming cashless, with 67% of those people trying it for at least a few days.
To conclude, cash payments are still relevant for now however most people and all the statistics prove that Malaysia is on a good track to becoming a cashless society due to these various rivals which offer so many benefits than carrying cash around. Those benefits are, preventing the spread of the virus, making financial records easier to track, minimizing the danger of theft, providing a hassle-free experience, and avoiding the need to queue at banks.
Thus as a business owner, you need to follow the trend. Your customers deserve to choose from a variety of payment options that they are comfortable with. Visit www.didisystems.com.my to see our complete and updated POS that offers a variety of payment options for your valued customers.