Cashless payments to grow strongly amid slow adoption in Malaysia

PayNet group CEO says there are challenges and most of these revolve around changing people’s behaviours and, in due time, Malaysians will adapt


Cashless payments are expected to continue to grow strongly in the country, despite the segment facing the challenge of adoption by Malaysians.

Payments Network Malaysia Sdn Bhd (PayNet) group CEO Peter Schiesser (picture) said there has been an increase in the growing trend of cashless transactions, but there are also challenges that come along with it.

“We see both growth and challenges. It (the segment) is definitely growing…there is no doubt about that, particularly in e-commerce, which has been growing spectacularly over the last two years. In fact, almost a 100% year-on-year (growth) for many of the e-commerce players out there.

“However, there are also challenges and most of these revolve around changing people’s behaviours,” he said at the DuitNow launch campaign prize-giving ceremony at the Malaysia Airlines Academy in Kelana Jaya, Petaling Jaya, yesterday.

Schiesser added that despite the slow adoption by Malaysians, especially the older folks, he is optimistic that such a situation will change soon.

“All of this comes with time, constant promotion and getting people to try things. Surely, they will adopt and Malaysia will certainly be up there with the best countries in the world when it comes to cashless payments in due course,” he said.

Echoing similar sentiments is Malaysia Airlines Bhd (MAB) group chief revenue officer Ignatius Ong, who said the airline is also exploring possible opportunities to further expand in the cashless payment segment.

“We are seeing a lot of development in the fintech (financial technology) sphere. One of the things we have done is with DuitNow…we are also looking at e-wallets in the long run. It could be with Touch ‘n Go, Boost or GrabPay,” he said at the event.

Ong added that MAB is trying to see how the airline could provide convenience of payments to its customers over the purchase of tickets.

“We are working closely with certain banks in terms of introducing easy payment plans and all that.

“It is not just about selling tickets. It is about convenience and making sure that customers would find it easy to purchase or make transactions with MAB,” he said.

Ong said such a collaboration would help the airline to reach its budget.

“So, all these collaborations with DuitNow, Maxis Bhd or any other companies are actually to ensure that we hit the target of what we have already set,” he said.

Earlier at the event, Public Bank Bhd customer Eric Ting Wu bagged a RM100,000 Malaysia Airlines Dream Holiday Package prize after he emerged as the first winner of the DuitNow Launch Contest.

PayNet, in collaboration with several banks in the countries, launched DuitNow four months ago, which would allow bank customers to transfer money instantly and securely at the banks’ Internet or mobile banking channels.

In conjunction with the launch, bank customers stand a chance to win prizes including a RM1 million dream home, a total of RM1 million in cash prizes, a Mercedes-Benz GLC200 and a Mercedes-Benz A200.

The contest runs from Jan 8 to May 31, 2019.