Thursday, 24 January 2019

Do Malaysians Love Cashless Payments?


According a report by Focus Malaysia, 67% of Malaysians use some form of cashless payments – debit cards and online banking. This is based on a study released by Nielsen Malaysia.

The report suggests 63% of Malaysians use debit cards and 57% use online banking to make payment. Only 27% use credit cards to pay for their expenses. Mobile wallet is the least at 8%.

For regular or recurring expenses it is online banking. And this is for phone and internet bills (53%), utility bills (47%), car loan instalments (38%) and rent (37%).

Cash is preferred for dining out (93%), groceries (90%) and petrol purchase (81%). Awareness of mobile wallets (88%) is high but not usage. Why? Security concerns – risk of fraud is the biggest barrier. Another is danger of overspending. So this is an area for mobile wallet providers to work on and create an environment of its safety.

Unlike Malaysia or U.S., Chinese consumers have adopted cashless and e-commerce methods faster. Around 68% of internet users (who constitute more than 731 million) use mobile digital payments compared to the U.S. (about 15%). It is estimated that 61% of global mobile payments in 2018 was from China (primarily through AliPay and WeChat Pay).

References:
1.         Two in Three Malaysians Use Cashless Payments, Focus Malaysia (17 Jan 2019).
2.         Why China Leads the World in Mobile Payments, Sharon Rosa-Bohrer


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