Powering the shift to digital payments

Ng Kong Boon qtcht

HUMANS are creatures of habit. We tend to default to what’s familiar, unless a worthy cause – like the Covid-19 virus – comes along to jolt us out of what we’re comfortable with.Fumbling for cash at the cash register was largely a norm in Malaysia even with the existence of cashless payments before the onset of Covid-19.

However, the multiple movement control orders the nation has gone through in the past two years greatly accelerated the use of digital payments here.

More than six out of every 10 face-to-face transactions are contactless payments as of June 2021, according to VisaNet data.

Visa country manager for Malaysia Ng Kong Boon said the way businesses and consumers interact during the pandemic brings upon a long-term shift in lifestyle and consumption patterns as the country progresses towards a post-pandemic recovery.

“Continuous efforts by society to minimise physical interactions to combat the spread of the virus reflects the increasing preference for contactless and digital payment methods.

“Based on the Visa Consumer Payment Attitude Study 2020, 45% of Malaysians have made it a habit to avoid using cash since the pandemic took us by surprise.”

Much less of an option and more of a necessity, Ng added that businesses are finding a bigger purpose in introducing digital payment solutions to meet the demands of the consumers.

Visa’s Consumer Payment Attitudes study shows that 49% of Malaysians carry less cash in their wallet because 77% of them now opt to pay via contactless payments instead of paying cash.

Noting that a huge proportion of Malaysians are familiar with contactless payments, Ng said the top benefits stated by consumers in using contactless card payments include the convenience of not carrying cash (71%), the speed of transaction (61%), and being safe from infection (57%).

“Based on the study, 95% of them are aware of this payment solution and 21% of them actually used contactless payments mostly at supermarkets, fast food chains, restaurants and petrol service stations for the first time during the pandemic.

“Our study also shows that 65% of Malaysians use contactless card payments, and during the pandemic, 47% of them increased their usage of contactless payments – making this their preferred mode of payment as it is perceived as a good method to reduce contact with banknotes,” he said.He stressed that contactless payments are enabling Malaysian consumers to transact in a secure and seamless environment as they become more particular about physical hygiene.

Meanwhile, there are opportunities to grow cashless payments across cash dominant categories such as public transport, convenient stores and more, said Ng.

He added that Visa is collaborating with issuers, acquirers, merchants and the government to promote and accelerate the use of digital payments in the country.

He also shared that Visa launched the “Where You Shop Matters” initiative in August 2020 which empowers small and micro businesses to pivot from face-to-face to online and accept digital payments.

The initiative aims to drive consumer awareness and traffic to shop at the online stores of our registered merchants, which are provided with a digital hub equipped with solutions, tools, and services to help digitalise their businesses.

“Over 500 merchants have been on boarded to the platform.

“More than 400,000 unique visitors were recorded on the Visa Where You Shop Matters’s website,” he said.

As Malaysia enters the recovery phase, Ng reiterated that Visa is committed to using its network to help clients embrace continued business opportunities and pivot in times of uncertainty.

“We want to offer speed, convenience and security to help businesses adapt in the midst of the pandemic and thrive,” he said.

For more information, visit visa.com.my.

Visa was the exclusive Exabyte Partner of the Digital Financing: Powering a Ca$hless Economy Live Virtual Conference that was held on June 22 and 23 in commemoration of Star Media Group’s 50th Anniversary.

Visit bit.ly/digifinplaylist to watch the sessions’ replay.