CASHLESS PAYMENT IN MALAYSIA
- Posted by: sumi
- Category: Finance Technology Uncategorized
Cashless payments are digital methods of transferring funds between two parties. Cashless payments use a payment gateway to electronically transfer funds using debit cards, credit cards, or via mobile phone, website, kiosks, or another digital device. For example, cards, mobile wallets, contactless cards, QR code payment. As the country moves toward digitalization, users have more and more options for making cashless transactions at government agencies.
- MyDebit is an ATM card payment service that allows customers to make secure payments or purchases by entering their PIN number or tapping the card at retailers’ Point-of-Sale (POS) terminals using funds debited from their account.
- DuitNow QR is a service that allows customers to scan a national QR code to make payments using any participating bank or e-wallet app (DuitNow QR).
Users can pay at the counter with either of these options. In addition, users can pay using the online banking methods listed below:
- JomPAY is a service that allows customers to pay any bill to any participating biller using funds from their savings, current, or credit card account via the Internet or mobile banking service.
- FPX, on the other hand, is an online payment solution that allows customers to pay participating merchants for their purchases online through Internet or mobile banking, using funds from their savings and current accounts.
- DirectDebit is a service that allows customers to set up and authorise automated recurring bill payments directly from their bank accounts.
Cashless Payment Statistic (South East Asia)
According to the 2022 Visa South-East Asia (SE Asia) Consumer Payments Attitudes Study, up to 74% of Malaysian consumers have successfully turned cashless, and the country will have a cashless society in just three years. In SE Asia, 93% of consumers use a variety of cashless payment options, such as cards, mobile wallets, contactless cards, and QR code payments.
During the pandemic, there was a 75% increase in the use of contactless payments, and a 60% increase in card usage. According to the study, preference for cashless payments is growing in SE Asia, with nearly four in five (77%) SE Asian consumers planning to use cashless payments more frequently.
This is due to the widespread use of mobile wallets (52%), contactless card payments (44%), and growing interest in novel payment methods such as Buy Now Pay Later (BNPL) solutions (63%).
Cashless payment methods such as cards, contactless cards, mobile contactless, mobile wallets, and QR code payments are used by 93% of consumers in Southeast Asia. Singaporeans (97%), Malaysians (96%), and Indonesians (96%), lead the way.
To be concluded, cashless payment is very convenience. The ease of making and receiving payments is the most important factor in prioritizing digital payments. Online payments eliminate the need to carry cash and save time because business owners and customers no longer have to wait in line for ATM services.