Malaysia's E-Wallets Fully Opened... Part of 'Untact' Promotion Measures

Electronic Wallet Usage Rate at 40%... Highest in Southeast Asia
Government Encourages Contactless Payment Services Due to COVID-19

Contactless and non-face-to-face payment methods available in Malaysia
[Image source=RinggitPlus]

[Asia Economy Kuala Lumpur Hong Seong-a Guest Reporter] Malaysia has been found to have the highest e-wallet usage rate in Southeast Asia. E-wallets are a method of registering cards or charging cash on a mobile phone instead of using plastic credit cards, and government policies encouraging contactless payment services have had a significant impact.

According to the Mastercard Impact Report on the 30th, a survey of 10,000 people across 10 countries in the Asia-Pacific region found that 40% of Malaysians use e-wallets. This was followed by the Philippines (36%), Thailand (27%), and Singapore (26%).

This result was largely influenced by the Malaysian government's policy to promote e-wallet usage. Since last year, to encourage electronic payments, Malaysians aged 18 and over with an annual income of 100,000 ringgit (about 30 million KRW) or less have been given 30 ringgit (about 8,000 KRW) in e-money usable on Malaysian electronic payment applications such as Grab, Touch 'n Go, and Boost.

Especially this year, with the outbreak of the novel coronavirus disease (COVID-19), the e-wallet policy has gained further momentum. The Malaysian government recently announced measures to encourage the use of contactless payment services. Accordingly, Malaysians aged 18 and over with an annual income of 100,000 ringgit or less who download an app that provides COVID-19 information will receive up to 100 ringgit (about 28,000 KRW) in e-money.

Due to this influence, the usage rate of contactless and non-face-to-face payment methods other than e-wallets is also high in Malaysia. As of April, when asked whether they used cashless payment methods (mobile, QR code, etc.), 18% of Malaysian respondents answered yes. Additionally, when asked whether they used contactless cards (debit or credit cards), 25% of Malaysian respondents answered yes.

As the promotion of electronic payments increases, cash usage is relatively decreasing. McDonald's and Pizza Hut in Malaysia have announced that cash carries a high risk of infection, and restaurants and shopping malls are suppressing cash usage by offering cashback or discounts when using contactless payments.

Mastercard analyzed in the report that although the electronic payment market has grown mainly among the millennial generation, the spread of COVID-19 will accelerate the cashless era. A representative of an e-wallet company pointed out, "Until now, concerns about personal information leakage made people reluctant to use electronic payments, but currently, concerns about virus infection through cash exchange are greater."

This content was produced with the assistance of AI translation services.