Malaysia Cards and Payments - Opportunities and Risks to 2027

Malaysia Cards and Payments - Opportunities and Risks to 2027

Summary

GlobalData’s ‘Malaysia Cards and Payments: Opportunities and Risks to 2027' report provides detailed analysis of market trends in the Malaysian cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cash, credit transfers, cards, mobile wallets, cheques, and direct debits during the review-period (2019-23e).

The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2023e-27). It also offers information on the country's competitive landscape, including market shares of issuers and schemes.

The report brings together GlobalData’s research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers detailed regulatory policies and recent changes in regulatory structure.

The report provides top-level market analysis, information and insights into the Malaysian cards and payments industry, including -

• Current and forecast values for each market in the Malaysian cards and payments industry, including debit, credit, and charge cards
• Detailed insights into payment instruments including cash, credit transfer, cards, mobile wallets, cheques, and direct debits . It also, includes an overview of the country's key alternative payment instruments.
• Ecommerce market analysis.
• Analysis of various market drivers and regulations governing the Malaysian cards and payments industry.
• Detailed analysis of strategies adopted by banks and other institutions to market debit, credit, and charge cards.
• Comprehensive analysis of consumer attitudes and buying preferences for cards.
• The competitive landscape of the Malaysian cards and payments industry.

Scope

• In accordance with the central bank’s Payment Card Reform Framework dated December 23, 2014, scheme providers are gradually reducing interchange fees. Effective from January 1, 2023, the central bank capped interchange fees for both domestic and international debit cards at 0.10% and 0.27%. Interchange fee for credit cards were capped at 0.6%.
• Contactless card holding is growing in Malaysia, with all major banks now offering contactless payment cards. According to Visa’s Consumer Payment Attitudes Study, contactless payments are most popular in supermarkets, followed by other retail stores and restaurants. The study also indicated that millennials and Generation Z are the key segments using contactless payments. Meanwhile, as per the central bank, 68.9% of transactions at physical stores were contactless in 2022 - up from 64.6% in 2021.
• Buy now pay later (BNPL) is gaining popularity. Malaysian consumers (especially millennials) are using these solutions rather than credit cards because many BNPL offerings are interest-free and do not involve credit checks. BNPL services are also available to individuals who do not have access to credit cards. Grab’s PayLater service is available for all Grab rides and Grab food orders, as well as online purchases. Users can split purchases into four payments. Meanwhile, in July 2023, TikTok partnered with BNPL service provider Atome to offer installment payments to customers who make purchases on the TikTok Shop ecommerce platform.

Reasons to Buy

• Make strategic business decisions, using top-level historic and forecast market data, related to the Malaysian cards and payments industry and each market within it.
• Understand the key market trends and growth opportunities in the Malaysian cards and payments industry.
• Assess the competitive dynamics in the Malaysian cards and payments industry.
• Gain insights into marketing strategies used for various card types in Malaysia.
• Gain insights into key regulations governing the Malaysian cards and payments industry.