70% of Malaysians Prefer to Visit Shops that Accept Digital Payments, Visa Study Saysby Fintech News Malaysia September 19, 2019
Digital payments are becoming the payment method of choice in Malaysia, with 70 percent of consumers preferring to visit merchants that accept digital payments compared to those that only accept cash, according to the Visa Consumer Payment Attitudes Study 2018. This is an increase of 21 percent compared to the previous year.
The sample size of this study is relatively small, with only 500 Malaysians between the age of 18-60 surveyed, so it may or may not represent an entirely accurate picture of Malaysian’s attitude towards digital payments.
Over half of the respondents expect their use of digital payments to increase over the next year. The merchant categories that consumers expect higher usage of digital payments include large shopping malls (65%), supermarkets (60%) and bill payments (57%).
Top benefits cited for paying with digital payments include convenience (70%), hassle-free (62%), and wide acceptance (56%). More than half of the respondents (60%) believe going cashless offers greater payment security, in addition to being able to track their spending better, even though cash remains the preferred payment method for small transaction amounts in the country.
“We are encouraged to see a growing preference for digital payments among Malaysian consumers. We see a similar trend based on our VisaNet data, where the total value of consumer spending on Visa and number of transactions have increased double-digit percent year on year. However, there are continued opportunities for growth because cash still accounts for more than 60 per cent of consumer spending in Malaysia,”
said Mr. Ng Kong Boon, Visa Country Manager for Malaysia.
Featured image credit: Visa