The continued growth in usage is driven by physical F&B and retail transactions

by NURUL SUHAIDI / TMRpic

OVER half of the Malaysian population have been using cashless payments in the past three months.

According to Ipsos’ study titled “Non-cash economy and the role of e-wallets”, the adoption of cashless transactions has become more prevalent in Malaysia as the pick-up usage of e-wallet is increasing compared to 2021.

This involves online banking (36%), debit card (32%), e-wallet (27%) and credit card (8%).

Primarily dominant among younger consumers, cashless payments are seen largely taking place at food and beverage (F&B) outlets and retail stores as well.

Other cashless transactions include tolls and parking (49%), F&B outlets (46%), retail stores (45%), food deliveries (35%), online purchases (33%), bill payments (25%) and money transfers to friends and family (22%).

Ipsos Malaysia public affairs assoc director Lars Erik said this year, the continued growth in usage is driven by physical F&B and retail transactions as Malaysians are out and about again.

“Although the usage is more common among the urban segment, the lower income group also has started to adopt the payment method and become familiar with it as well,” the study noted.

Erik added that more than half of Malaysians now have an average of two cashless payment channels at their disposal.  

“As e-wallet payment becomes viable across channels, there is an indication that consumers will find their favourite and stick with it,” he added.

The study also found that Touch ‘n Go remains the preferred e-wallet cementing its dominant position and increasing presence across more channels.

These are followed by Malayan Banking Bhd online payment (28%), ShopeePay (21%), Boost (16%) Grab Pay (16%), Setel (4%), Alipay (2%) and Razer Pay (1%).

The survey commissioned, in May 2022, represents a sample of 1,020 Malaysians aged 18 to 74.