Market Size of Malaysia Payments Industry
| 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 |
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Malaysia Payments 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.
