Report: 99% of Malaysians likely to adopt emerging digital payment methods in the next year

Focus Malaysia

7 days ago

DIGITAL payments adoption is fast gaining traction locally as Malaysians adopt innovative payment options and leapfrog into mobile-first ecosystems.
According to new research by Mastercard which surveyed consumers across the globe on payment preferences, almost two-thirds (63%) of Malaysian consumers prefer using new and innovative methods such as Tap & Go mobile payments, biometric payments, QR codes and mobile wallets over traditional methods like cash or manual card entry, reflecting a widespread appetite for innovation.
This compares to just 25% in North America, 24% in Europe and 53% in Asia Pacific overall, underlining Malaysian consumers' receptivity to adopting emerging digital payment solutions.
Embracing payment innovation
Digital payment adoption is set to surge in Malaysia, with 99% of consumers likely to use emerging digital payment methods in the next year.
They also want a choice in payment types, with 93% likely to use five or more payment methods in the next 12 months.
While cash is still Malaysia's most used payment method—70% of consumers used it in the last year, narrowly edging out QR code payments (64%)—usage of digital payment methods is set to rise in the next year.
In Malaysia, 86% of consumers are likely to use instant payment services while 85% and 83% expect to use QR code payments and digital wallets respectively in the year ahead.
This preference for innovation applies to other emerging technologies as well, with 89% of Malaysian consumers (compared to 86% across APAC more broadly) saying they are keen to use AI to manage their finances, particularly for fraud detection, payment automation, product personalisation and predicting financial outcomes.
There is also rising demand for payment options to maximise the value of their wallets with 91% of Malaysians agreeing that their current financial status plays a substantial role in their choice of payment methods, among the highest globally.
Convenience is king (Image: Pexels/Pixabay)
As payment options grow, consumers are seeking hyper-convenient ways to manage money that fit seamlessly with their digital usage habits.
They want flexibility to customise how they pay, tapping into digitally native methods like peer-to-peer or peer-to-merchant payments, QR codes, wearables, and social commerce.
In fact, 92% of Malaysians agree that companies should make it as simple as possible for consumers to buy from them, with 86% agreeing that they should be able to buy anything at any time, regardless of the type of payment methods.
Super apps are the new baseline: In Malaysia, 75% of consumers use or want all-in-one apps to manage payments, shopping, and more. As these platforms become mainstream, payment tools must meet consumers where they already are, not the other way around.
Social shopping is shaping commerce, especially for younger consumers: In Malaysia, 54% of Gen Z consumers and 46% of Millennial consumers prefer buying through social apps as compared to a merchant's website.
In fact, 72% of Malaysians say influencers now shape their buying decisions—eight percentage points higher than the region's average.
Embedding seamless payments into digital leisure spaces like social media apps is key to enabling this shift from browsing to buying.
Trust and security are top of mind: While 72% of Malaysian consumers see biometric payments as more secure than traditional methods, 84% are concerned about who has access to their data, 6 percentage points higher than the Asia Pacific average.
Mastercard Malaysia & Brunei country manager Beena Pothen noted that the findings reaffirmed that the digital evolution in payments has firmly taken centre stage in Malaysia.
'With digital-first and mobile-first lifestyles shaping consumer behaviour, innovation and security in payments will be key to sustaining this momentum,' she stressed.
'Mastercard remains committed to driving progress in this space, leveraging its global insights, leading technology, and deep expertise to advance the future of payments—delivering greater convenience and confidence in every payment experience for consumers in Malaysia.' ‒ July 22, 2025
Main image : Getty Images