Table of Contents

Card-based Payments

Merchant Acquiring

E-commerce Payments

Mobile Proximity Payments

P2P Payments

Bill Payments

Alternative Payments

Payment Innovations

Payments Infrastructure & Regulation

Appendix

Malaysia Cards & Payments: Opportunities and Risks to 2023

Summary

GlobalData’s 'Malaysia Cards & Payments: Opportunities and Risks to 2023' report provides detailed analysis of market trends in Malaysia's cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cash, direct debits, credit transfers, cheques, and cards during the review-period (2015-19e).

The report also analyzes various payment card markets operating in the industry, and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2019e-23f). It also offers information on the country's competitive landscape, including the market shares of issuers and schemes.

The report brings together GlobalData’s research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers details of regulatory policy and recent changes in the regulatory structure.

GlobalData’s 'Malaysia Cards & Payments: Opportunities and Risks to 2023' report provides top-level market analysis, information and insights into Malaysia's cards and payments industry, including -
- Current and forecast values for each market in Malaysia's cards and payments industry, including debit, credit, and charge cards.
- Detailed insights into payment instruments including cash, direct debit, credit transfers, cheques, and cards. It also, includes an overview of the country's key alternative payment instruments.
- E-commerce market analysis.
- Analysis of various market drivers and regulations governing Malaysia's cards and payments industry.
- Detailed analysis of strategies adopted by banks and other institutions to market debit, credit, and charge cards.

Scope

- In December 2018, PayNet (in partnership with ACI Worldwide) launched DuitNow, a real-time payment platform. The system allows users to make instant credit transfers 24/7 using the recipient’s mobile phone number or other identification number. By the end of January 2019, 20 major bank were participating in the system and 6.8 million users had registered for DuitNow. In July 2019, a common standard dubbed DuitNow QR was launched by PayNet to promote the adoption and usage of QR code payments. Public Bank was the first to adopt the system, and over 30 banks are set to enable DuitNow QR payments within their respective mobile banking apps over the next few months. In addition, 12 e-wallet providers are also adopting the system.
- In order to push the adoption of electronic payments, banks are introducing service fees on over-the-counter (OTC) transactions at bank branches. From August 1, 2019, CIMB started charging MYR2 ($0.48) on credit card and loan/financing repayments made using cash or cheque via OTC at branches. This followed Public Bank introducing similar fees in April 2019. Meanwhile, as per a central bank directive effective from July 1, 2018, banks waived transaction fees on instant transfers for amounts up to MYR5,000 ($1,209.75) made by individuals and SMEs. 14 banks completely waived the fee for all types of customers irrespective of transaction amount.
- The government introduced the sales and service tax in September 2018, which may affect credit card market growth. The new rules imposed an annual service tax of MYR25 ($6.05) on both principal and supplementary credit and charge cards, increasing the cost of holding these cards for consumers. The annual service tax was first introduced in 2010, which had a severe impact on the credit card market. The tax was then abolished in April 2015, which boosted adoption of credit cards in the years that followed.

Reasons to buy

- Make strategic business decisions, using top-level historic and forecast market data, related to Malaysia's cards and payments industry and each market within it.
- Understand the key market trends and growth opportunities in Malaysia's cards and payments industry.
- Assess the competitive dynamics in Malaysia's cards and payments industry.
- Gain insights into marketing strategies used for various card types in Malaysia.
- Gain insights into key regulations governing Malaysia's cards and payments industry.