KUALA LUMPUR: More than two-thirds of Malaysian consumers have attempted to adopt a cashless lifestyle, according to a Visa study.

In the Consumer Payment Attitudes (CPA) study, the shift towards cashless payments was primarily driven by Gen Z and Gen Y, with nearly four in five respondents successfully adopting a cashless lifestyle.

Seven out of 10 Malaysian consumers have attempted to go cashless, with Gen Z and Gen Y leading the way at 85 per cent and 78 per cent, respectively.

"Consumers' cash-carrying habits have also changed, with close to 50 per cent of respondents carrying less physical cash in their wallets.They cited the following reasons for carrying less cash: using more contactless payment methods (61 per cent), more places are adopting cashless payments (54 per cent), and feeling that carrying cash is unsafe as it can get lost or be stolen (42 per cent)," it added.

The Visa Consumer Payment Attitudes Study was conducted in October 2023 by CLEAR with 1,000 Malaysians aged 18-65 years of age.

It is part of a regional research project conducted in Southeast Asia on 6,550 consumers across seven markets.

The study added that Malaysian preferences for contactless card payments also continue to grow, driven by a universal awareness of contactless card payments.

"More than 90 per cent of consumers are aware of contactless card payments, while over 60 per cent of them are already actively using it as a payment method," it highlighted.

Visa said consumers are more positive about Malaysia's shift towards a cashless society, with over 40 per cent believing the country will transition to a cashless society by 2030, if not sooner.

The study revealed that card payments in Malaysia have a near-universal adoption rate of 91 per cent.

Contactless payments are the most popular method (20 per cent), followed by QR payments (12 per cent) and online payments using credit or debit cards (10 per cent).

It also highlighted a rise in the number of merchants accepting digital payments, fueling the growing momentum of the cashless trend in the country.

The top categories where consumers report increased digital payment acceptance are food and dining (84 per cent), retail shopping (79 per cent), and supermarkets (76 per cent).

Visa country manager for Malaysia Ng Kong Boon said the rise in digital payments reflects Malaysia's significant evolution in the payment landscape.

"More merchants and consumers see the benefits of digital payments as a convenient and secure way to pay."In fact, contactless payments have really outperformed the country compared to a few years ago.Today, more than nine in 10 Visa transactions are contactless payments, compared to 2019 where it was slightly over 50 per cent," he said.

Ng said Visa anticipates continuing its collaboration with key stakeholders in the payment ecosystem to promote the adoption of digital payments, aiming to advance Malaysia's digitalisation.

https://www.nst.com.my/business/corporate/2024/06/1065634/visa-study-says-more-two-thirds-malaysian-consumers-have-tried-go