Remember the days when cash was king? When we had to carry around wads of cash and frequently hit the ATM every time we ran low? Yeah, that feels like ancient history now.
Today, it’s all about tapping, scanning, and swiping our way through transactions. According to the latest scoop from Bank Negara Malaysia, electronic transactions have shot up by a whopping 24% to 11.5 billion transactions in 2023.
And you know what? It’s all for the better! With more people using smartphones, government backing, and the COVID-19 pandemic nudging us towards contactless transactions, cashless is the way to go! Let’s dive into what you need to know about cashless payments in Malaysia.
Types of Cashless Payment Methods in Malaysia
#1. E-wallets
According to a study by Ipsos, 26% of cashless transactions in Malaysia are through e-wallet usage. E-wallets offer users a convenient way to make payments via smartphones, with features such as QR code scanning and peer-to-peer transfers. You’re likely familiar with some of the most popular e-wallets, like:
- Touch ‘n Go eWallet: Dubbed the most popular e-wallet, the versatile Touch ‘n Go eWallet lets users reload, shop online, pay tolls, and even settle parking fees, all with a few taps on their smartphones.
- GrabPay: It’s not just for rides anymore! GrabPay is your ultimate sidekick for everything from groceries to meals, even your utility bills – all seamlessly managed in one app.
- ShopeePay: As part of the popular e-commerce platform, ShopeePay offers users exclusive deals and discounts, incentivising them to use the wallet for both online and offline purchases, further fueling its popularity.
#2. Mobile Wallets
Imagine your physical wallet condensed into an app on your smartphone, storing payment info, loyalty cards, and more — that’s a mobile wallet. Mobile wallets are specifically designed for use on smartphones, perfect for tap-to-pay transactions at physical stores. These include:
- Apple Pay: It’s the OG for Apple users, making transactions seamless whether you’re in-store, online, or browsing through your favourite apps. It’s safe, secure, and convenient.
- Google Pay: Android peeps, this one’s for you! Google Pay enables users to make contactless payments in stores, send money to friends, and even pay for purchases online with ease.
- Samsung Pay: Exclusively for Samsung Galaxy owners, Samsung Pay ups the ante with its MST tech, letting you pay at traditional terminals like a boss. Convenience? Check. Acceptance? Double check. It’s the ultimate wallet upgrade for your Galaxy.
#3. Debit Cards
These nifty little cards let you spend your money straight from your bank account without the hassle of carrying cash. Whether you’re shopping online or grabbing a coffee, just swipe or tap, and the amount gets deducted straight from your bank balance. Easy peasy! Plus, they’re widely accepted, so you can use them almost anywhere you go.
#4. Online Banking
With 90% of us Malaysians using it at least once a month, online banking has become our staple for handling all things money-related. From transferring funds and paying bills to snagging online deals, online banking is our ultimate financial tool. Its top-notch convenience and security make it one of the most utilised cashless payment methods in the country.
Why Online Banking and Debit Cards Reign Supreme?
Currently, online banking and debit cards are still the most popular choice for Malaysians, tied at 35% of usage. But, why the hype?
- Security and Trust: When it comes to your hard-earned cash, security is non-negotiable. Online banking and debit cards ensure just that. Platforms like FPX take it up a notch, making online transactions smoother and safer. Plus, businesses are also embracing secure payment services like eGHL, iPay88, and Stripe, ensuring a hassle-free payment experience.
- Wide Acceptance: With acceptance at most merchants, they’re the go-to choice for everyday purchases. Not to mention the FPX payment system has established partnerships with nearly all banks in Malaysia, further bolstering their convenience and accessibility.
- Budget Management: Online banking makes it a breeze to monitor your expenses, set budgets, and stay on top of your financial game. Local solutions like MAE and CIMB Clicks have some savvy features too, from expense tracking to budgeting tools, helping you ace your money management skills.
E-Wallets: Malaysia’s New Favorite Cashless Option in 2024?
While online banking and debit cards are the go-to for Malaysians, e-wallets are on the rise, A quarter of us are using them daily – that’s double the rate in 2022! And it’s not hard to see why:
- Super Convenience: Imagine zipping through your day without fumbling for cash or cards. That’s the magic of mobile wallets! Just whip out your phone, scan, and pay – it’s that simple.
- Cashback, Discounts, and Deals: Who doesn’t love a good bargain? With mobile wallets, you’re in for a treat! Get ready to snag cashback, discounts, and jaw-dropping deals on your favourite purchases.
- Easy to Use: Don’t let tech intimidate you! E-wallets are designed with simplicity in mind. Whether you’re a digital native or a tech newbie, these apps are a breeze to navigate.
And there you have it, folks – Malaysia’s cashless revolution! But wait, there’s more! If you’re an online seller, we’ve got a little surprise for you. Ever heard of the latest (and hottest!) payment method – Ship Now and Pay Later?
Seriously, no joke! If you register as a free user here, you’ll get five FREE* deliveries immediately! Send anything, anywhere, hassle-free. Talk about convenience!
