No longer carrying wads of cash

More convenient: Several digital financial service providers confirmed a rise in Malaysians opting for cashless transactions while overseas. — FAIHAN GHANI/The Star

Malaysians prefer debit cards and e-wallets for ease and better rates

PETALING JAYA: From sipping coffee in Stockholm to shopping in Jakarta, more Malaysians are opting for cashless payments abroad.

Drawn by the convenience of making payments through the phone and debit cards while travelling, many say going cashless relieves them of the stress of carrying wads of cash.

Architect Mohd Tarmizi Abdullah, 39, only uses cashless transactions abroad.

“Even in Central Asia or Nordic countries, all my expenses are cashless. It’s extremely convenient,” he said.

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“I also feel more secure as I don’t have to worry about losing cash to pickpockets. If cash is stolen, it’s gone forever but cards and mobile wallets can be deactivated or replaced.”

Communications executive Zarif Shukri, 29, said digital platforms provide better currency conversion rates than traditional money changers.

He said the limited availability of some foreign currencies in Malaysia could make physical currency conversion a challenge.

“Prior to a recent trip to Budapest, Hungary, I looked around for the currency (Hungarian forint) but it was not available here. I had to buy Euros and US dollars first, then converted them after arriving in Budapest.

“Now with cashless options, I can buy the currency I need through my mobile app,” he said.

Human resources manager S. Jeyaraj, 55, keeps his options open while travelling by using both e-wallets and cash.

“Cash is important for smaller businesses and roadside stalls. It’s handy when you want to grab snacks or drinks while travelling.”

Senior copywriter KK Wong, 33, only uses debit cards from platforms that support international transactions when making payments abroad.

“I prefer them for their favourable exchange rate charges. My debit card also works at ATMs globally,” she said, adding that she still keeps some cash on hand as backup.

When contacted, several digital financial service providers confirmed a rise in Malaysians opting for cashless transactions while overseas.

Wise senior product manager Yee Won Nyon said Malaysia was now the company’s fastest-growing market in the Asia Pacific region, with active users increasing by 80% year-on-year in the financial year ending March 31, 2025.

“This shows how quickly Malaysians are embracing smarter financial tools for travel.”

She said Wise card usage continued to grow, with the number of cards issued in Malaysia rising by nearly 30% over the past financial year.

She said Japan currently topped the list of travel destinations among Malaysian users, with the yen balances rising 35% year-on-year, followed by significant spending in the United States, Indonesia, China, Australia and various European countries.

TNG digital chief executive officer Alan Ni said the shift from cash to cashless payments was evident in both domestic and international travel.

He added that cross-border payments were the company’s fastest-growing area of business.

Ni said partnerships with PayNet’s national QR network, Alipay+ network as well as Touch ‘n Go eWallet visa card led to a 360% increase in users’ average monthly overseas spending between 2023 and 2025.

“Today, we handle over RM300mil in cross-border payments every month,” he said, adding that the shift from cash to cashless was still at its early stages.

“This means there’s still significant room for cashless growth.”