Malaysia Payment Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Malaysia Payment Market Analysis

The Malaysia Payments Market is expected to register a CAGR of 11.4% during the forecast period.

Malaysia's payments landscape is undergoing a significant digital transformation, supported by robust technological infrastructure and increasing internet penetration. According to recent data, internet users in Malaysia increased by 365,000 (+1.3%) between 2021 and 2022, while cellular mobile connections reached 42.11 million at the start of 2022. The country's payment systems have evolved from traditional paper-based methods to increasingly cashless and paperless solutions in the digital era. The government has established comprehensive payment infrastructure for smooth operations, with the Bank Negara Malaysia-owned Payments Network Malaysia Sdn Bhd (PayNet) operating the country's extensive value payment system, RENTAS, which enables secure transfer and settlement of high-value interbank financial transactions and securities.

The banking sector is witnessing unprecedented innovation through the introduction of new digital services and strategic partnerships. In 2023, a significant development was the gradual integration of PayNow-DuitNow linking Singapore and Malaysia's real-time payment systems, enabling customers to transfer funds between the two countries using just mobile numbers. The central bank has also approved new digital bank licenses, marking a pivotal shift in the financial services landscape. These digital banks are expected to introduce specialized products and payment services with reduced switching costs, fostering greater competition and innovation in the sector.

The merchant acceptance infrastructure continues to expand, with EFTPOS terminals reaching 804,413 in July 2022, demonstrating the growing adoption of digital payment solutions at physical points of sale. The retail sector has shown remarkable resilience and adaptation to digital payments, with retail sales recording a significant increase of 62.5% year-over-year in the second quarter of 2022. This growth has been particularly notable in fashion and accessories, supermarkets, and department stores, indicating a broad-based adoption of digital payment solutions across various retail segments.

The widespread adoption of digital payments is evident from the Visa 2022 Consumer Payment Attitudes report, which reveals that 96% of Malaysians now use digital payments. Financial institutions and technology providers are continuously innovating to meet this growing demand, introducing new electronic payment solutions such as QR codes, contactless payments, and digital wallets. The payment ecosystem has evolved to include various stakeholders, from traditional banks to fintech companies, creating a competitive environment that drives innovation and improves service delivery. These developments are supported by regulatory frameworks that ensure security while promoting innovation, making Malaysia's payment system more efficient and accessible to all segments of society.

Malaysia Payment Market Trends

Solid E-commerce Growth, Rising Basket Spend, and an Increasingly Digitally Savvy Population

Malaysia's digital economy is experiencing remarkable growth, driven by a tech-savvy population that increasingly embraces online shopping and digital wallet usage. The country has established itself as an attractive market for e-commerce in Southeast Asia, supported by its dynamic economy and well-developed digital infrastructure. According to recent data, about 82.9% of mobile users in Malaysia actively shop online, demonstrating the population's high comfort level with online payments. This trend is further reinforced by the presence of three major annual national shopping events – Malaysia Super Sale (March), Malaysia Mega Sale Carnival (June-August), and Malaysia Year-End Sale (November-December), which have significantly contributed to increased online shopping adoption and digital wallet usage.

The country's digitally savvy population continues to grow, evidenced by the increasing adoption of advanced technologies including social media, cloud computing, and the Internet of Things. As of January 2022, Malaysia recorded 30.25 million social media users, representing an 8% increase from the previous year. This digital transformation is complemented by the country's digital economy blueprint, which focuses on empowering Malaysians with digital literacy, high-value job creation, fintech education, and healthcare improvements. The blueprint, extending until 2030, includes substantial investments in digital framework, telecommunications strengthening, nationwide 5G rollout, and cloud service provider enhancement, with a total investment of USD 15 billion, creating a robust foundation for continued e-commerce and online payments growth.

Adoption of Card-based Payments

The growth of card-based payments in Malaysia is primarily supported by the continuous expansion of payment infrastructure and favorable regulatory policies. A significant indicator of this growth is the increasing number of EFTPOS terminals across the country, which reached 804,413 in July 2022, compared to 668,057 in 2019, demonstrating the robust development of card payment acceptance infrastructure. This expansion is further supported by the Central Bank's initiatives, including the Payment Cards Framework, which aims to ensure fair and reasonable card acceptance costs for merchants while addressing various frictions in the payment card market.

The adoption of card-based payments is also driven by the growing preference for contactless payments and the convenience they offer for both in-store and online transactions. According to the Visa Consumer Payment Attitudes report, 96% of Malaysians now use online payments, with card payments being one of the predominant methods. This trend is reinforced by continuous innovations in the payment ecosystem, such as the integration of new payment gateway technologies and the introduction of virtual credit cards (VCCs) by financial institutions. For instance, Alliance Bank Malaysia Bhd launched the country's first VCC for individuals, offering enhanced security features for online transactions and demonstrating the banking sector's commitment to advancing card-based payment solutions.

Segment Analysis: By Mode of Payment

Point of Sale (PoS) Segment in Malaysia Payments Market

The Point of Sale (PoS) segment dominates the Malaysia payments market, commanding approximately 94% market share in 2024, demonstrating its crucial role in the country's payment ecosystem. This substantial market position is supported by the widespread adoption of various PoS payment methods at physical stores, including card payments, digital wallets, and cash transactions. The segment's strength is further reinforced by the increasing integration of modern payment processing technologies at retail locations, with merchants actively embracing contactless payments and QR code solutions. Major financial institutions and payment service providers continue to enhance their PoS offerings, focusing on security, convenience, and faster transaction processing to maintain the segment's dominant position in the market.

Online Sale Segment in Malaysia Payments Market

The Online Sale segment is experiencing remarkable growth in the Malaysia payments market, with an expected growth rate of approximately 20% during 2024-2029. This accelerated growth is primarily driven by the rapid expansion of e-commerce, increasing digital literacy, and growing consumer confidence in online transactions. The segment's growth is further supported by the proliferation of innovative digital payment solutions, including digital wallets, card payments, and emerging options like Buy Now Pay Later (BNPL) services. Financial institutions and technology companies are actively developing and implementing advanced security measures and user-friendly interfaces to enhance the online payment experience, contributing to the segment's robust growth trajectory.

Segment Analysis: By End-User Industry

Retail Segment in Malaysia Payments Market

The retail payment segment dominates the Malaysia payments market, commanding approximately 38% market share in 2024, driven by the country's robust retail infrastructure and digital transformation initiatives. The segment's leadership position is strengthened by the widespread adoption of digital payment solutions across both traditional and modern retail channels. Malaysia's retail sector has witnessed significant evolution with over 1,000 shopping centers offering more than 16.42 million square meters of retail space, creating extensive opportunities for merchant payment adoption. The integration of various payment technologies, including mobile wallets, contactless payments, and QR-based solutions, has transformed the retail payment landscape. Major retail chains and merchants are increasingly partnering with payment service providers to offer innovative payment solutions, while regulatory initiatives supporting cashless transactions have further accelerated digital payment adoption in the retail sector.

Remaining Segments in End-User Industry

The healthcare segment maintains a significant presence in the Malaysian payments market, focusing on digitizing payment processes across public and private healthcare facilities. The entertainment segment has evolved significantly with the integration of digital payment solutions across streaming services, gaming platforms, and traditional entertainment venues. The hospitality sector has embraced digital payments to enhance customer experience and streamline operations across hotels, restaurants, and tourism services. Other end-user industries, including transportation, education, and consumer electronics, collectively represent a substantial portion of the market, each contributing to the diverse payment ecosystem through specialized solutions and use cases tailored to their specific needs.