Malaysia boasts a fairly recently industrialized market economy which ranks as the third largest economy within South East Asia behind only Indonesia and Thailand.
As such, Malaysia is a very important economic hub for many different areas of business internationally and, after experiencing a boom to undergo rapid development recently, is a middle-income country which holds its own. With all of the economical transactions taking place within Malaysia, there are many different payment options to get by including online banking, credit and debit cards, Prepaid Cards and E-Wallets. Next, we will take a quick look at each of the most popular methods within separate categories of payment methods.
From a quote taken from Maybank’s ex-president and CEO, Datuk Seri Abdul Wahid Omar,
Within our customer base, we have some 2.3 million active users who performed over 2.5 million shopping transactions worth about RM675 million last year (2012).
Maybank2u is the largest banking group within Malaysia offering consumers banking services including online banking. Maybank2u controls around 50% of registered users for online banking within Malaysia which, with the given statistics, come out to be roughly 4.6 million active online banking users. A total of 50% of online transactions are being paid by using online banking services, which shows just how important online banking is within Malaysia. Other banks such as Hong Leong and CIMB are under the FPX (Financial Process Exchange) as a subsidiary of MEPS, the interbank clearing system by Malaysian Banks. Under FPX, the consumer will verify transactions using their online banking profiles and the transactions happen real-time. This is a very popular method of payment within Malaysia.
Credit cards and Debit Cards
In Malaysia, there are roughly 8.5 million credit cards in circulation with Citibank owning around 20% of the credit card market share totaling to be 1 million active credit card users. This means that there are around 5 million active credit card users within Malaysia however, this does not necessarily mean that all 5 million active cardholders use these cards to make online payments. According to our research, 35% – 40% of online transactions are paid through credit cards in Malaysia. Major banks within Malaysia issue credit and debit cards for users to conveniently spend their money online. These banks include the ones covered in the above section as well as other’s such as HSBC, Hong Leong, OCBC Bank, and Standard Chartered. Much like the rest of the world, Malaysian banks offer coverage in Visa, Mastercard, Discover, AmEx, and JCB.
Prepaid Cards and E-wallets
Prepaid cards fall under the remaining 15% of online transactions after covering online banking and credit/debit cards. Popular prepaid cards and e-wallets include CashU, Cherry Credits, MOLPoints, Paypal, and MyCard, much like how it is dispersed in the rest of South East Asia. One important method to note for Malaysia especially is the MOLPoints prepaid card online micropayment system. Within MOLPoints system, there are over 15,000 physical and virtual payment channels across Malaysia alone. MyCard is also one to note as it is one of the leading prepaid platforms within Asia in general. With over 3.5 million subscribers and 40% of those users in the 16-20 age range, MyCard is a prepaid card method that is popular with the younger generation.
A Final Look
With so many easy methods of online payments conveniently at the users fingertips, it is getting harder and harder to decide on which way is the best. Methods such as Prepaid Cards and Debit cards help the younger generation remain targetable by game developers and companies looking to do online transactions while online banking, credit cards, and e-wallets provide a secure way for everyone else to take advantage of within Malaysia. Malaysia boasts a large gaming population with gamers eagerly awaiting to spend their money on the newest installment of the latest series so it will be exciting to see just how the industry develops with the payment systems in place within Malaysia.