Malaysia Payment Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 11.40 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Malaysia Payment Market Analysis
The Malaysia Payments Market size was estimated at USD 182.67 billion in the current year. The market is expected to reach USD 313.40 billion in five years, registering a CAGR of 11.4% during the forecast period.
The Malaysian payments market is growing, and the major factor behind it is the country's transition to digital payments. The ongoing digital transformation of the market has been facilitated by government efforts, such as the adoption of an interchange fee cap, the migration of payment cards to support PIN and contactless payments, and the growth of POS terminals.
- Market players are increasing their payment options to help merchants and businesses cope with the future of business and satisfy customers' expectations as Malaysia steps closer to becoming a cashless society and more widespread use of digital payments. However, small businesses continue to rely heavily on cash transactions. Getting cashless will also be difficult for certain small businesses, and street vendors need help acquiring the equipment to keep their digital currency.
- The main reasons for Malaysia's adoption of card payments are the gradual increase in consumer spending on online stores, Point of sale, government financial inclusion measures, and increasing preference for contactless payments due to the cards' convenience and ease of use.
- Over the past few years, there has been a sharp acceleration of developments in payment technology. Although cash has become one of the country's primary payment methods, many transactions are being made electronically. An infrastructure to ensure the efficient operation of this system has been put in place by the government.
- Small retail shops and street vendors have been at the center of fulfilling the country's daily essentials and grocery needs, and these retailers and street vendors are essentially accepting payments in cash. In addition, micro and small retail businesses are more vulnerable to economic shocks than large and medium businesses and are the least digital-savvy group.
- In the last few years, shopping has become increasingly popular in Malaysia. The country has an excellent broadband penetration rate due to recent technological developments. Customers increasingly use mobile devices to purchase goods and services online due to the COVID-19 pandemic.
Malaysia Payment Market Trends
Card Payments to Witness the Growth
- Debit, credit, and bank-funded prepaid cards are used for payment at the point of sale in Malaysia's payments market. Card payment transactions via debit and credit cards at the point of sale have become popular in the country over recent years. Various government initiatives, such as the cap on interchange fees and the widespread expansion of point-of-sale infrastructure, support the growth of card payments in the country.
- In addition, over the last two years, there has been a marked increase in the number of EFTPOS terminals across the country. Many terminals throughout the country are foreseen to increase the acceptance of cards at retail outlets.
- In POS, vendors continuously innovate their products to capture the particular market in this country as debit and credit card payments at retail stores continue to grow.
- Moreover, payment cards are still one of Malaysia's most widely used payment tools for physical transactions. The sustained growth in the use of payment cards over recent years is expected to grow over the forecast period. To encourage greater use and adoption of payment cards, favorable policies such as the Payment Cards Framework providing measures enabling merchants to manage their acceptance costs better and address other frictions within the payment card ecosystem will further support this growth.
Retail Sector to Witness Significant Growth
- According to the Malaysian Central Bank, the most commonly used payment method is cash for retail transactions in Malaysia. All kinds of transactions relating to payments between customers, businesses, and the Government are carried out using this system. The essential monetary payments shall include utility bills, bus fares, groceries, and other shopping expenses. Despite the development of other non-paper-based payment mechanisms and electronic payment methods, It is still anticipated that cash will remain a significant retail payment method in Malaysia.
- Furthermore, due to a rise in the number of smartphones and consumers' willingness to shop abroad, e-commerce in Malaysia has also been growing at an accelerated pace for several years. The increasing physical infrastructure and regulatory framework for facilitating online commerce in this evolving sector can be exploited by businesses new to the country.
- In addition, the growth of Malaysia's e-commerce sector has begun to be stimulated by COVID-19-related online services and increased use of mobile phones in this country. Malaysia has many e-commerce users due to its widespread use of the Internet and telecommunications. Online shopping accounts for about 50% of consumers, with 82.9% buying their phones online. Malaysians are driven mainly by product quality, price advantages, selection, and accessibility of reviews. Exclusive discounts, free shipping, ease of use, and offers from online retailers impact consumers.
- As a result of the growth of digital payments in the region, retailers are being forced to adapt to these changes and provide their customers with better payment service options, which could help them to increase their sales and expand their presence.
Malaysia Payment Industry Overview
Malaysia's payment market is highly competitive, with many local and global players. The market's leading players use strategic cooperation actions and innovations to gain market share and increase profitability.
In April 2023, PayPal Holdings Inc. announced it had added new features to its complete payment solutions for small businesses. The solution enables small businesses to accept various payments, including Paypal, Venmo, and Paypal Pay Later Products. PayPal will also give small businesses access to four new features to help them drive payment acceptance and enhance how they run their business. This will include Apple Pay as a checkout option, the ability for customers to save payment methods with the PayPal vault for faster future checkout, a real-time account updater to help customers keep their payment methods up to date, and access to IC++ pricing.
In March 2023, Maybank collaborated with American Express and launched the American Express Explorer Business Platinum CardTM, which catered to small businesses, business banking, and corporate customers to help them better manage their cash flow while rewarding them for their spending. The American Express Explorer Business Platinum Card (Explorer Card) simplifies business expense management and is well-positioned to become the preferred payment tool for various types of expenditures, especially for travel, with a host of rewards for both local and overseas spending.
Malaysia Payment Market Leaders
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Ipay88 (m) Sdn Bhd
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United overseas bank (Malaysia) Bhd
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PayPal Holdings Inc.
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Cimb Group Holdings Berhad
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Maybank
*Disclaimer: Major Players sorted in no particular order
Malaysia Payment Market News
- May 2023: Maybank launched its cross-border QR payment service for Maybank customers traveling to Singapore, Indonesia, and Thailand, as they can now make cashless and instant payment transactions via the MAE app. Similarly, incoming tourists from these countries can make cashless payments with Maybank QRPay merchants in Malaysia. The new offering will enable Malaysians visiting the respective countries to enjoy a cheaper, faster, and more convenient payment option through the MAE app.
- January 2023: Xoom, PayPal's international money transfer service, has announced that it has launched a new cross-border money transfer product, debit card deposit, enabling Xoom customers, and the new feature will offer remittance receivers easy, secure, and real-time access to funds, which are sent directly to a recipient's eligible Visa debit card.
Malaysia Payment Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Stakeholder Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
4.4 Evolution of the Payments Landscape in Malaysia
4.5 Key Market Trends Pertaining to the Growth of Cashless Transaction in Malaysia
4.6 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 E-commerce Growth, Rising Basket Spend, and Rise in Digitally-aware Population
5.1.2 Adoption of Card-based Payments
5.2 Market Restraints
5.2.1 Challenges Faced by Small Retailers and Street Vendors while Adapting to the Cashless Payment Ecosystem
5.3 Market Opportunities
5.3.1 Digitalization of Payment Services
5.3.2 Expansion of E-commerce Businesses
5.4 Key Regulations and Standards in the Digital Payments Industry
5.5 Analysis of Major Case Studies and Use Cases
5.6 Analysis of the Key Demographic Trends and Patterns in the Payments Industry in Malaysia
5.7 Analysis of the Increasing Emphasis on Customer Satisfaction and Convergence of the Global Trends in Malaysia
5.8 Analysis of Cash Displacement and Rise of Contactless Payment Modes in Malaysia
6. MARKET SEGMENTATION
6.1 By Mode of Payment
6.1.1 Point of Sale
6.1.1.1 Card Payments
6.1.1.2 Digital Wallets
6.1.1.3 Cash
6.1.1.4 Other Point-of-sale Payments
6.1.2 Online Sale
6.1.2.1 Card Payments
6.1.2.2 Digital Wallets
6.1.2.3 Other Online Sale Payments
6.2 By End-user Industry
6.2.1 Retail
6.2.2 Entertainment
6.2.3 Healthcare
6.2.4 Hospitality
6.2.5 Other End-user Industries
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Maybank
7.1.2 Paypal Holdings Inc.
7.1.3 United Overseas Bank (Malaysia) Bhd
7.1.4 Ipay88 (m) Sdn Bhd
7.1.5 Cimb Group Holdings Berhad
7.1.6 Samsung Pay (Samsung Electronics Co. Ltd)
7.1.7 Visa Inc.
7.1.8 Bank Islam Malaysia Berhad
7.1.9 Grab Pay (Grab Holdings Limited)
7.1.10 Huawei Pay (Huawei Technologies Co. Ltd)
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Malaysia Payment Industry Segmentation
Payment shall be a voluntary transfer of funds, equivalent, or other valuable items from one person to another in exchange for goods and services received or satisfying an obligation under the law.
The Malaysian Payments Market is segmented by mode of payment (point of sale (card payments, digital wallets (including mobile wallets), cash) and online sale (card payments, digital wallets)) and end-user industry (retail, entertainment, healthcare, and hospitality).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
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Malaysia Payment Market Research FAQs
What is the current Malaysia Payments Market size?
The Malaysia Payments Market is projected to register a CAGR of 11.40% during the forecast period (2024-2029)
Who are the key players in Malaysia Payments Market?
Ipay88 (m) Sdn Bhd, United overseas bank (Malaysia) Bhd, PayPal Holdings Inc., Cimb Group Holdings Berhad and Maybank are the major companies operating in the Malaysia Payments Market.
What years does this Malaysia Payments Market cover?
The report covers the Malaysia Payments Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Malaysia Payments Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key trends in Malaysia's Payments Market?
Key trends in the Malaysia Payments Market a) Rise of digital wallets b) Increased online transactions c) Adoption of contactless payments
What are the key challenges faced by Malaysia's Payments Market?
Key challenges faced by the Payments Market in Malaysia a) Cybersecurity threats b) Regulatory compliance c) Need to improve digital literacy among consumers
Linerless Labels Industry Report
The report covers Malaysia Payment Market Statistics and is segmented by mode of payment, including point of sale methods such as card payments, digital wallets, and cash, as well as online sales via card payments and digital wallets. The market is further segmented by end-user industries like retail, entertainment, healthcare, and hospitality. The market sizes and forecasts are provided in terms of value for all the above segments.
The growth rate of the Malaysia payment market is influenced by several factors. Industry analysis indicates that digital wallets are becoming increasingly popular, driven by the convenience and security they offer. Industry information highlights that card payments still hold a significant share of the market, particularly in the retail sector. The industry outlook is positive, with a steady increase in the adoption of digital payment methods.
Industry reports suggest that the healthcare and hospitality sectors are also seeing a rise in the use of digital wallets and card payments. Industry research shows that cash transactions are declining, although they still play a role in certain segments. Industry sales data reveals that the market size for digital wallets is expanding rapidly, supported by advancements in technology and increasing smartphone penetration.
Industry statistics underscore the shift towards digital payments, with industry trends pointing towards a future where cashless transactions dominate. Market data from various sources corroborates these findings, presenting a comprehensive market forecast. The market growth is expected to continue, driven by innovations and consumer preferences.
Market leaders in the payment industry are investing heavily in technology to enhance user experience and security. The market outlook remains robust, with market overview reports predicting sustained growth. Market predictions indicate that digital wallets will eventually overtake card payments in terms of market value.
The market review highlights the importance of market segmentation, which allows for targeted strategies and better understanding of consumer behavior. Market value assessments show a significant increase, reflecting the overall health of the industry. Report examples and report PDFs provide detailed insights into these trends.
Research companies are actively studying these developments, offering valuable industry insights. The report serves as a crucial resource for stakeholders looking to navigate the evolving payment landscape in Malaysia.
