KUALA LUMPUR: Banks should invest in cashless infrastructure to cater to small businesses as they currently focus on high-income segments, based on a study done by the Asian Institute of Finance (AIF).
“This means development of new cashless products and services that meet the limited investment budgets and current infrastructure of small retail businesses,” AIF director of strategy, policy development and research Jaya Kohli said in a statement on the release of two AIF reports.
According to the first study “Towards a Cashless Malaysia: The Stakeholders' Perspective”, small businesses are considerably reluctant to adopt cashless means for both selling and collection purposes, but its adoption may be inevitable to meet supplier and customers preferences for cashless payments.
The study, carried out in collaboration with Universiti Malaya's Department of Finance and Banking, hints at the increased likelihood of cashless adoption by local consumers across the spectrum of cashless instruments.
Survey data indicates the potential for an average increase of about 20% for Internet payments, debit cards and mobile payments. — Bernama