Malaysians Prefer e-Wallets and Debit Cards as Payment Methods

A survey found that an encouraging number of people prefer cashless transactions, especially since the enforcement of the Movement Control Order (MCO).

e recently carried out a “W survey on more than 1,000 Malaysians between the ages of 18 and over 65. Most people still prefer cash transactions – especially before the enforcement of MCO,” said Alvin Chai, User Experience Consultant at Netizen eXperience which provides user research, analytics and technology solutions for digital transformation.

The key factors that contribute to this are Malaysians’ concerns over security and privacy issues, and the possibility to overspend with cashless payment methods, added Chai.

“Post MCO, e-Wallets and debit cards are becoming fast favourites and the main reasons are because of contactless payments and convenience,” he said, adding that the shift was a step in the right direction with the buzz of digital banking licensing in Malaysia.

The survey also found the use of cashless payment methods being more prevalent among those between the ages of 18 and 54, compared to those aged 55 and above.

Bank Transfer 3%

QR Pay 2.2%

Debit Card 9.5%

Debit Card 27.4%

Top reasons to use Cash:

• Convenience • Payment option that’s readily available at the store • Easier to control spending Cash 29.3%

Malaysians’ Preferred Payment Method During MCO

e-Wallet 28.6%

Top reasons to use e-Wallets:

• Contactless payment • Convenience • Incentives (Discounts and Cashback)

Top reasons to use Debit Cards:

• Contactless payment • Convenience • Payment option that’s readily available at the store

Alvin Chai, User Experience Consultant at Netizen eXperience.

Bank Negara Malaysia was in the midst of finalising the licensing framework for digital banks and planned to issue up to five digital bank licences. However, the development of the framework hit a snag due to disruptions caused by COVID-19.

“As user experience researchers, we see Malaysia’s e-wallet players leaning towards digital banking but the more traditional financial institutions – banks and insurance firms – are a little hesitant. Change can be a little difficult but we are here to make the progression easier, while being completely customer centric,” said Chai.

Netizen eXperience specialises in all things digital – development of mobile apps, launching digital features for its clients and even building websites. Its key-strength in being able to track digital behaviour of consumers and carry out data analytics following a digital-product launch.