It said on Tuesday overseas Visa cardholders spent US$1.6bil (RM5.22bil) while visiting Malaysia in 2012, up 6.5% on-year.
According to VisaVue Travel data, the total number of Visa transactions made by overseas visitors increase by 6.7%, from 9.1 million in 2011 to 9.7 million in 2012.
After Singapore, the survey showed visitors from Australia spent US$126.7mil (RM413.68mil) and the UK with US$122.6mil (RM400.29mil).
Visa country manager for Malaysia Stuart Tomlinson said the growing card usage among visiting travellers showed Malaysia was gradually becoming a more mature electronic payments market as foreign travellers demonstrated a greater level of trust towards the payment system in the country.
"More consumers are now realizing the benefits and convenience of payment cards when making transactions abroad. Payment cards allow consumers to conveniently access their funds from ATM machines abroad and make payments at millions of merchant locations in more than 200 countries where Visa cards are accepted."
The top 10 countries based on overall traveler spend in Malaysia were: Singapore, Australia, the United Kingdom, Indonesia, the US, Japan, Saudi Arabia, China, Hong Kong and South Korea. These 10 countries accounted for 64.2% of total Visa card spend by travelers coming to Malaysia.
The report also noted that the biggest rise in spending was recorded by visitors from Indonesia, who have now become Malaysia's fourth largest source market in terms of international spending.
"Spending by Indonesian Visa cardholders increased by 18.8% over the previous year growing from US$85.5mil (RM279.16mil) to US$101.6mil (RM331.72mil)," said Tomlinson.