Value of electronic money transactions in Malaysia 2016-2022
The value of electronic money transactions in Malaysia reached nearly 70 billion Malaysian ringgit in 2022, an increase of around 20 billion from the previous year. E-money is usually stored in e-wallets, with some of the most popular e-wallets in Malaysia including Touch n’ Go and Grab pay. The increase in transaction value in 2022 showed that e-wallets are becoming more commonly used as a cashless payment method across the country.
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.
Current trend driven by e-commerce
The 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-money
There 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.
