, Malaysia
114 views

Malaysia’s card payment market value to grow 15.2% in 2022

A perfect storm for card adoption is brewing in the country.

Malaysia’s card payments market is expected to grow 15.2% in 2022, thanks to a rise in consumer spending, local financial inclusion measures, and growing preference for contactless payments, according to data and analytics company GlobalData.

This extends the 15.9% rebound in 2021, following a 5.4% decline in 2020. From 2022 to 2026, market value is forecasted to grow at a compound annual growth rate (CAGR) of 11.5% and be worth US$95.6b by 2026.

Several factors are brewing up a perfect storm for the growth of the card payments market in Malaysia. Notably, the government recently awarded five digital bank licenses, which are expected to launch over the next two years. The neobanks are expected to to complement traditional banks and increase financial inclusion in the country, and GlobalData expects that they will in turn push card penetration and payment card usage.

ALSO READ: Malaysia’s new digital banks fated to remain niche in medium term

The central bank is also looking to reduce interchange fees to encourage card acceptance amongst merchants. As of December 2021, they’ve proposed for interchange fees on debit cards to be reduced by 0.1% from 0.15% previously, and on credit cards 1.1% prior to 0.6%. 

An increasing number of consumers are also now looking for ‘touch-free’ payments, thereby pushing the usage of contactless cards. According to the Bank Negara Malaysia, two out of every three card payments at physical stores in 2021 were contactless, compared to one out of two in 2020.

Follow the link for more news on

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Most Read

1. headlineee

Top News

What is Lorem Ipsum?
What is Lorem Ipsum? Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

Exclusives

Sed molestie interdum dui sit amet egestas
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.
CIMB Niaga leads the way in captivating Indonesia’s youth
The bank’s digital solutions are winning over younger generations with 3.2M mobile users and 96% digital transaction rate in 2023.
BCA sets benchmark in Indonesia’s microfinance sector
Innovative approaches reflect the bank’s commitment to pushing financial inclusion and fostering economic growth.