According to the 2022 Visa Consumer Payment Attitudes (CPA) Study, seven out of ten Malaysian consumers are actively using contactless card payments, highlighting their increasing adoption of cashless transactions. The study also reveals that more than 90 percent of Malaysians are familiar with contactless payments, with supermarkets, retail stores, and restaurants being the preferred categories for contactless payments. This shift towards cashless payments indicates Malaysia’s progression towards becoming a cashless society, with Gen Z and Gen Y leading the trend.
KUALA LUMPUR, 5 July 2023 – Visa Inc., a global leader in digital payment, announced that seven out of ten Malaysian consumers are actively using contactless card payments, signaling a significant step towards achieving a cashless society. The findings from the 2022 Visa Consumer Payment Attitudes (CPA) Study demonstrate the growing familiarity and adoption of contactless payments in Malaysia, with supermarkets, retail stores, and restaurants being the top categories where Malaysians prefer to use this convenient and secure payment method.
According to the study, more than 90 percent of Malaysians are familiar with contactless payments, and the number of users has increased to nearly 70 percent, up from 56 percent in the previous year. The data reveals that contactless payments have become the preferred method for Malaysian consumers when paying for groceries, retail shopping, and entertainment purchases.
Ng Kong Boon, Visa Country Manager for Malaysia, highlighted Malaysia’s position as one of the most developed contactless payments markets in the Asia Pacific region, with eight in ten Visa transactions now being contactless payments. He further emphasized the significant growth of contactless payments in recent years, especially since the onset of the pandemic, attributing it to collaborative efforts between Visa, merchants, and issuers to expand acceptance and educate consumers about the benefits of contactless payments.
The study also indicates a shift towards a cashless society in Malaysia, as card payments have surpassed cash usage, particularly during the pandemic. A staggering 92 percent of respondents have used credit or debit card payments, and more than three in four Malaysians have made attempts to go cashless, with 67 percent having tried cashless payments for at least a few days. The report cites reasons such as the increased adoption of contactless card or mobile payments, the prevalence of cashless payment options, and concerns about the security of carrying cash as contributing factors to this trend.
Ng further commented on the rise of cashless payment habits and preferences, noting the increased usage of contactless cards, QR payments, and online and in-app payments. While cash remains the most frequently used payment method, the frequency of cashless payments has seen a rise since 2021. The study reveals that younger generations, including Gen Z and Gen Y, are leading the way in embracing cashless options. It forecasts that Malaysia is expected to become a cashless society by 2030, with the majority of consumers relying on cashless methods for their daily transactions.
The 2022 Visa CPA Study, conducted with 1,000 Malaysians aged 18 to 65, is part of a regional research project carried out in Southeast Asia, encompassing seven markets, including Cambodia, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.
