The card payment market in Malaysia is poised for strong growth, projected to reach MYR422.4 billion ($92.6 billion) in 2025, driven by increasing consumer spending and the growing shift towards digital payments. This growth is supported by government initiatives, expanding POS infrastructure, and rising consumer adoption of contactless and credit card payments, positioning the market for continued upward momentum, reveals GlobalData, a leading data and analytics company.
GlobalData’s latest report, “Malaysia Cards and Payments – Opportunities and Risks to 2028,” reveals that card payment value in Malaysia registered a growth of 14.1% in 2023, driven by the rise in consumer spending. The value grew further to register an estimated growth of 10.2% in 2024 to reach MYR387 billion ($84.8 billion).
Shivani Gupta, Senior Banking and Payments Analyst at GlobalData, comments: “The Malaysian payments market remains reliant on cash but has high-growth potential as it shifts toward digital payments. Government initiatives such as the introduction of an interchange fee cap on payment cards, the growing adoption of contactless payments, and the development of POS infrastructure, have all contributed to the adoption of payment cards in the country.
“In addition, the availability of low-cost basic financial and banking services as well as banks expanding their reach via agent banking networks and digital banking channels have all contributed to the shift towards non-cash payment methods.”
Growing POS terminalization is contributing towards the rise of cards payments in Malaysia. The number of POS terminals per million inhabitants in Malaysia stands at 27,036 in 2024, which is higher compared to its peers such as Thailand (13,507), Indonesia (8,142) and India (6,964), though there is significant room for further expansion of POS infrastructure.
Among the card types, credit and charge cards accounted for 59.6% share of the overall card payment value in 2024. Malaysians are increasingly opting for credit and charge cards when making payments, with the frequency of payments per card standing at 83.2 times in 2024, compared to 40.9 times for debit cards. This growth can be attributed to the country’s developing payment infrastructure, growing consumer awareness, expanding merchant acceptance, and the added benefits associated with credit and charge cards.
Debit cards, on the other hand, account for the remaining 40.4% share. Although debit cards are traditionally preferred for cash withdrawals, they are now increasingly being used for payments as well – especially low-to-medium value transactions. This has been driven by the rising consumer awareness, and banks offering contactless debit cards.
Contactless card payment is also gaining prominence in Malaysia and is being widely used, as consumers favor contactless cards for low value day to day transactions. Backing from banks and financial institutions has made contactless the prevalent payment method in Malaysia, which is accepted by most retailers.
According to GlobalData’s 2024 Financial Services Consumer Survey*, over 63% of the respondents in Malaysia indicated having access to a contactless card and used it for payments.
The increasing use of contactless payments for public transport payments is also contributing to the growth of card payments. For example, in March 2024, the highway operator PLUS Malaysia introduced contactless credit and debit card payment capabilities at the toll plaza on the Penang Bridge. Commuters can simply tap their cards on the MyDebit-Visa-Mastercard device to complete toll payments, with the toll fee deducted directly from their card balance. These advancements indicate a growing trend towards the normalization of cashless and contactless payment methods in Malaysia.
Gupta concludes: “The Malaysian card payments market is expected to continue its upward growth trajectory, supported by the government initiatives, rising consumer preference for digital payments, and improving card acceptance infrastructure. Subsequently, the card payments value is anticipated to grow at a compound annual growth rate of 7.7% between 2025 and 2029 to reach MYR569.4 billion ($124.8 billion) in 2029.”
*GlobalData’s 2024 Financial Services Consumer Survey was carried out in Q2 2024. Approximately 67,292 respondents aged 18+ were surveyed across 41 countries.