Malaysia is outpacing North America and Europe in the adoption of digital payments, with nearly all consumers in the country likely to use emerging methods in the next year, according to a new Mastercard survey.
The report found that 99% of Malaysians are expected to turn to options such as QR codes, mobile wallets, biometrics, and Tap & Go mobile payments.
Already, 63% prefer these newer methods over traditional ones like cash or manual card entry, compared to just 25% in North America and 24% in Europe. The Asia Pacific average stands at 53%.
Cash remains the most used payment method in Malaysia, with 70% of consumers having used it in the past year.
However, QR code payments are close behind at 64%, reflecting a narrowing gap.
In the coming year, 86% of Malaysians say they are likely to use instant payment services, while 85% expect to use QR code payments and 83% plan to use digital wallets.
AI, Super Apps, and Shifting Consumer Expectations
Consumers are also turning to artificial intelligence to manage their finances.
Around 89% of Malaysians are open to using AI for fraud detection, automated payments, financial planning, product personalization, and predicting financial outcomes, slightly above the Asia Pacific average of 86%.
Financial circumstances also influence how people choose to pay.
According to the survey, 91% of Malaysians say their current financial status plays a major role in selecting payment methods.
Convenience and flexibility are key expectations. The survey found that 92% of Malaysians want businesses to make purchasing as simple as possible, and 86% expect to be able to buy anything at any time, regardless of the payment method used.
Super apps that integrate payments, shopping, and other services are becoming more common.
About 75% of respondents in Malaysia already use or want access to such all-in-one platforms.
Gen Z Turn to Social Apps for Shopping
Social commerce is gaining traction, particularly among younger consumers.
More than half of Gen Z respondents prefer buying through social apps instead of merchant websites, and 72% say influencers affect their purchasing decisions with eight percentage points higher than the Asia Pacific average.
Security remains a concern. While 72% of Malaysian consumers view biometric payments as more secure than traditional options, 84% are worried about who has access to their personal data, six percentage points higher than the regional average.
The findings are based on a global study by The Harris Poll on behalf of Mastercard, conducted online between 4 and 20 September 2024.
The survey included responses from 19,302 consumers worldwide, including 1,010 in Malaysia.
Beena Pothen, Country Manager, Malaysia & Brunei, Mastercard, said,
“These findings reaffirm that the digital evolution in payments has firmly taken center stage in Malaysia. With digital-first and mobile-first lifestyles shaping consumer behavior, innovation and security in payments will be key to sustaining this momentum.
Mastercard remains committed to driving progress in this space, leveraging its global insights, leading technology, and deep expertise to advance the future of payments – delivering greater convenience and confidence in every payment experience for consumers in Malaysia.”
Featured image: Edited by Fintech News Malaysia, based on image by Freepik
