A Visa study indicates that over two-thirds of Malaysian consumers are adopting cashless payments, driven primarily by Gen Z and Gen Y. The shift is supported by increased merchant acceptance of digital payments, with contactless payments being the most popular method.
19 June 2024 – A recent study by Visa reveals that more than two-thirds of Malaysian consumers are making strides towards a cashless lifestyle, with Gen Z and Gen Y at the forefront of this shift. The Consumer Payment Attitudes (CPA) study found that nearly four out of five respondents from these generations have successfully transitioned to cashless payments.
The study, conducted in October 2023 by CLEAR, involved 1,000 Malaysian participants aged 18-65 and is part of a larger regional research project covering 6,550 consumers across Southeast Asia. It showed that seven out of ten Malaysians have attempted to go cashless, with Gen Z leading at 85 percent and Gen Y following at 78 percent.
A significant finding from the study is the change in consumers’ cash-carrying habits. Almost half of the respondents reported carrying less physical cash due to the increased use of contactless payment methods (61 percent), wider acceptance of cashless payments (54 percent), and concerns about the safety of carrying cash (42 percent).
Awareness and usage of contactless card payments are high among Malaysians, with over 90 percent of consumers aware of this payment method and more than 60 percent actively using it. The study also noted that 91 percent of respondents regularly use card payments, with contactless payments being the most popular (20 percent), followed by QR payments (12 percent) and online payments using credit or debit cards (10 percent).
The shift towards digital payments is further supported by the growing number of merchants accepting such methods. Key sectors reporting increased digital payment acceptance include food and dining (84 percent), retail shopping (79 percent), and supermarkets (76 percent).
Ng Kong Boon, Visa’s country manager for Malaysia, emphasized the significant evolution in the payment landscape, noting that contactless payments now account for over 90 percent of Visa transactions in the country, a substantial increase from just over 50 percent in 2019. He also highlighted Visa’s ongoing collaboration with stakeholders in the payment ecosystem to further promote digital payment adoption and advance Malaysia’s digitalisation efforts.
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