Current trend driven by e-commerceThe share of e-commerce to the gross domestic product (GDP) in Malaysia showed a three percent increase in 2020 when the COVID-19 pandemic began. This current trend in e-commerce had an effect on the popularity of e-wallets, due to the fact that consumers purchased more online during the movement control order (MCO). Although restrictions have now been lifted, paying for e-commerce sites is still the leading reason for consumers in Malaysia to use their digital payment systems.
Better regulations for e-moneyThere are now many e-wallet services for consumers in Malaysia to store and use their e-money. The current trend compelled the Malaysian government to impose better regulations, especially for non-bank e-money issuers. At the end of 2022, the Central Bank of Malaysia issued a policy document to ensure better safety and governance of the cashless payment system.
In 2021, the per capita transaction of e-money in Malaysia already reached more than 1,500 Malaysian ringgit. With the assurance of better regulations, cashless payment will likely become the preferred option among Malaysian consumers.