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Country Report

Financial Cards and Payments in

Financial Cards and Payments in Malaysia

Nov 2020

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Executive Summary

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COVID-19 impact on consumer payments

The number of transactions and transaction value declined in Malaysia in 2020 as a direct result of the emergence of COVID-19 in the country, and the subsequent lockdown measures in the form of Movement Control Order (MCO) which included amongst other factors, work from home measures, or unemployment and decreasing disposable incomes with the latter weakening consumer sentiment. This scenario resulted in many Malays prioritising their spending on essential goods and services, reducing the number of payments that they made during the first half of the year in particular, during an unstable climate.

COVID-19 country impact

Malaysian borders were closed to foreigners on 17 March. The Malaysia Movement Control Order (MCO) started on 18 March, and included measures such as limited operating hours for grocery retailers of 08.

Weak consumer sentiment in line with unemployment and decreasing disposable incomes prompts government to launch fiscal stimulus packages

The emergence of the pandemic and the subsequent lockdown measures introduced by the government in an attempt to control the spread of the virus significantly hit major business sectors for the country including tourism (due to closed borders), hospitality and airlines, resulting in a spike in unemployment and weaker consumer sentiment. The latter factor has focused Malays’ spending priorities on essential goods and services, and reduced the likelihood of greater spending on big-ticket items which had also led to a decline for credit cards and charge cards in particular.

Emergence of pandemic boosts digital payment methods

With the country in lockdown for several months resulting in non-essential stores being closed and fears over potential exposure to the virus if consumers visited physical stores, even as the MCO was gradually eased, an increasing number of Malays headed online to orders goods in 2020. This supported a surge in a number of electronic and digital payment methods, supporting significant growth in the number of transactions and transaction value for both electronic direct/ACH transactions and mobile m-commerce remote.

Touch ‘n Go remains overall issuer of financial cards but Malayan Banking strengthens lead of card payment transactions

Local cashless card issuer Touch ‘n Go (TNG) retained its leadership in terms of financial cards in circulation due to the dominance of popular pre-paid cards with the player extending its service over the review period from being mainly a cashless system for public transport and tolls, to becoming another player in mobile payments, developing its own e-wallet and allowing payments in convenience stores and selected retail stores. Speed and convenience are the key drivers of the rise of digital payments and became increasingly relevant under the scenario of the pandemic.

What next for consumer payments?

Malay consumers are expected to continue to shy away from using cash payments over the forecast period in a continuation of a trend emerging during 2020 due to the emergence of the pandemic, and supported by the government’s vision for Malaysia to become a cashless society. This scenario is set to lead to further decline in terms of cash transactions over the forecast period, and further growth in the number of financial cards in circulation, primarily driven by debit cards with the latter expected to see a particularly strong performance over the forecast period, driven by an aversion to accruing credit and getting into debt amongst some consumers as they are spending money they already have in the bank.

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Overview

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Overview

Discover the latest market trends and uncover sources of future market growth for the Financial Cards and Payments industry in Malaysia with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Financial Cards and Payments industry in Malaysia, our research will save you time and money while empowering you to make informed, profitable decisions.

The Financial Cards and Payments in Malaysia market research report includes:

Analysis of key supply-side and demand trends
Historic volumes and values, company and brand market shares
Five year forecasts of market trends and market growth
Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

What is the market size of Financial Cards and Payments in Malaysia?
What are the major operators and issuers in Malaysia?
How will regulation impact the market?
What is the current state of emerging payment technologies such as mobile commerce?

Why buy this report?

Gain competitive intelligence about market leaders
Track key industry trends, opportunities and threats
Inform your marketing, brand, strategy and market development, sales and supply functions

Euromonitor’s industry reports, including Financial Cards and Payments in Malaysia, originate from our database within our Consumer Finance market share and market size database, Passport, a platform which analyses Consumer Finance in 46 countries and globally.

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Financial Cards and Payments in Malaysia - Industry Overview

EXECUTIVE SUMMARY

COVID-19 impact on consumer payments

COVID-19 country impact

Weak consumer sentiment in line with unemployment and decreasing disposable incomes prompts government to launch fiscal stimulus packages

Emergence of pandemic boosts digital payment methods

Touch ‘n Go remains overall issuer of financial cards but Malayan Banking strengthens lead of card payment transactions

What next for consumer payments?

MARKET INDICATORS

Table 1 Number of POS Terminals: Units 2015-2020
Table 2 Number of ATMs: Units 2015-2020
Table 3 Value Lost to Fraud 2015-2020
Table 4 Card Expenditure by Location 2020
Table 5 Financial Cards in Circulation by Type: % Number of Cards 2015-2020
Table 6 Domestic versus Foreign Spend 2020

MARKET DATA

Table 7 Financial Cards by Category: Number of Cards in Circulation 2015-2020
Table 8 Financial Cards by Category: Number of Accounts 2015-2020
Table 9 Financial Cards Transactions by Category: Value 2015-2020
Table 10 Financial Cards by Category: Number of Transactions 2015-2020
Table 11 Consumer Payments by Category: Value 2015-2020
Table 12 Consumer Payments by Category: Number of Transactions 2015-2020
Table 13 M-Commerce by Category: Value 2015-2020
Table 14 M-Commerce by Category: % Value Growth 2015-2020
Table 15 Financial Cards: Number of Cards by Issuer 2015-2019
Table 16 Financial Cards: Number of Cards by Operator 2015-2019
Table 17 Financial Cards: Card Payment Transactions Value by Operator 2015-2019
Table 18 Financial Cards: Card Payment Transactions Value by Issuer 2015-2019
Table 19 Forecast Financial Cards by Category: Number of Cards in Circulation 2020-2025
Table 20 Forecast Financial Cards by Category: Number of Accounts 2020-2025
Table 21 Forecast Financial Cards Transactions by Category: Value 2020-2025
Table 22 Forecast Financial Cards by Category: Number of Transactions 2020-2025
Table 23 Forecast Consumer Payments by Category: Value 2020-2025
Table 24 Forecast Consumer Payments by Category: Number of Transactions 2020-2025
Table 25 Forecast M-Commerce by Category: Value 2020-2025
Table 26 Forecast M-Commerce by Category: % Value Growth 2020-2025

DISCLAIMER

GLOBAL MACROECONOMIC ENVIRONMENT

GLOBAL INDUSTRY ENVIRONMENT

SOURCES

Summary 1 Research Sources

Charge Cards in Malaysia - Category analysis

KEY DATA FINDINGS

2020 IMPACT

Lockdown measures in response to COVID-19 significantly restricts travel opportunities amongst affluent consumer group, resulting in declines for personal charge cards

Work from home and restricted travel for businesses result in lack of opportunity to use commercial charge cards

American Express remains leading local operator of charge cards in partnership with dominant issuer Malayan Banking

RECOVERY AND OPPORTUNITIES

Demand for charge cards predicted to fall as consumers increasingly drawn to other options with competitive reward schemes

Slight recovery predicted for commercial charge cards in terms of usage and value but category will struggle to return to pre-pandemic figures due to growing competition from other options

Charge card operators will need to be more creative in order to compete with credit card offers over the forecast period to offer greater differentiation

CATEGORY DATA

Table 27 Charge Cards: Number of Cards in Circulation 2015-2020
Table 28 Charge Cards Transactions 2015-2020
Table 29 Charge Cards in Circulation: % Growth 2015-2020
Table 30 Charge Cards Transactions: % Growth 2015-2020
Table 31 Commercial Charge Cards: Number of Cards in Circulation 2015-2020
Table 32 Commercial Charge Cards Transactions 2015-2020
Table 33 Commercial Charge Cards in Circulation: % Growth 2015-2020
Table 34 Commercial Charge Cards Transactions: % Growth 2015-2020
Table 35 Personal Charge Cards: Number of Cards in Circulation 2015-2020
Table 36 Personal Charge Cards Transactions 2015-2020
Table 37 Personal Charge Cards in Circulation: % Growth 2015-2020
Table 38 Personal Charge Cards Transactions: % Growth 2015-2020
Table 39 Charge Cards: Number of Cards by Issuer 2015-2019
Table 40 Charge Cards: Number of Cards by Operator 2015-2019
Table 41 Charge Cards Payment Transaction Value by Issuer 2015-2019
Table 42 Charge Cards Payment Transaction Value by Operator 2015-2019
Table 43 Commercial Charge Cards: Number of Cards by Issuer 2015-2019
Table 44 Commercial Charge Cards: Number of Cards by Operator 2015-2019
Table 45 Commercial Charge Cards Payment Transaction Value by Issuer 2015-2019
Table 46 Commercial Charge Cards Payment Transaction Value by Operator 2015-2019
Table 47 Personal Charge Cards: Number of Cards by Issuer 2015-2019
Table 48 Personal Charge Cards: Number of Cards by Operator 2015-2019
Table 49 Personal Charge Cards Transaction Value by Issuer 2015-2019
Table 50 Personal Charge Cards Transaction Value by Operator 2015-2019
Table 51 Forecast Charge Cards: Number of Cards in Circulation 2020-2025
Table 52 Forecast Charge Cards Transactions 2020-2025
Table 53 Forecast Charge Cards in Circulation: % Growth 2020-2025
Table 54 Forecast Charge Cards Transactions: % Growth 2020-2025
Table 55 Forecast Commercial Charge Cards: Number of Cards in Circulation 2020-2025
Table 56 Forecast Commercial Charge Cards Transactions 2020-2025
Table 57 Forecast Commercial Charge Cards in Circulation: % Growth 2020-2025
Table 58 Forecast Commercial Charge Cards Transactions: % Growth 2020-2025
Table 59 Forecast Personal Charge Cards: Number of Cards in Circulation 2020-2025
Table 60 Forecast Personal Charge Cards Transactions 2020-2025
Table 61 Forecast Personal Charge Cards in Circulation: % Growth 2020-2025
Table 62 Forecast Personal Charge Cards Transactions: % Growth 2020-2025

Credit Cards in Malaysia - Category analysis

KEY DATA FINDINGS

2020 IMPACT

Decline for credit cards during pandemic due to increasing preference for debit cards but category remains dominant in terms of transaction value

Notable decline for commercial credit cards due to restricted travel and work from home measures

Competition intensifies amongst local issuers in 2020 with dynamic Malayan Banking launching a number of products to attract consumers

RECOVERY AND OPPORTUNITIES

Improved performance predicted for credit cards from 2021 as consumers continue to move away from cash transactions

Number of credit cards in circulation set to continue to decline as younger generations increasingly opt for debit cards

Greater segmentation likely in terms of targeting specific consumer groups by banks

CATEGORY DATA

Table 63 Credit Cards: Number of Cards in Circulation 2015-2020
Table 64 Credit Cards Transactions 2015-2020
Table 65 Credit Cards in Circulation: % Growth 2015-2020
Table 66 Credit Cards Transactions: % Growth 2015-2020
Table 67 Commercial Credit Cards: Number of Cards in Circulation 2015-2020
Table 68 Commercial Credit Cards Transactions 2015-2020
Table 69 Commercial Credit Cards in Circulation: % Growth 2015-2020
Table 70 Commercial Credit Cards Transactions: % Growth 2015-2020
Table 71 Personal Credit Cards: Number of Cards in Circulation 2015-2020
Table 72 Personal Credit Cards Transactions 2015-2020
Table 73 Personal Credit Cards in Circulation: % Growth 2015-2020
Table 74 Personal Credit Cards Transactions: % Growth 2015-2020
Table 75 Credit Cards: Number of Cards by Issuer 2015-2019
Table 76 Credit Cards: Number of Cards by Operator 2015-2019
Table 77 Credit Cards Payment Transaction Value by Issuer 2015-2019
Table 78 Credit Cards Payment Transaction Value by Operator 2015-2019
Table 79 Commercial Credit Cards: Number of Cards by Issuer 2015-2019
Table 80 Commercial Credit Cards: Number of Cards by Operator 2015-2019
Table 81 Commercial Credit Cards Payment Transaction Value by Issuer 2015-2019
Table 82 Commercial Credit Cards Payment Transaction Value by Operator 2015-2019
Table 83 Personal Credit Cards: Number of Cards by Issuer 2015-2019
Table 84 Personal Credit Cards: Number of Cards by Operator 2015-2019
Table 85 Personal Credit Cards Payment Transaction Value by Issuer 2015-2019
Table 86 Personal Credit Cards Payment Transaction Value by Operator 2015-2019
Table 87 Forecast Credit Cards: Number of Cards in Circulation 2020-2025
Table 88 Forecast Credit Cards Transactions 2020-2025
Table 89 Forecast Credit Cards in Circulation: % Growth 2020-2025
Table 90 Forecast Credit Cards Transactions: % Growth 2020-2025
Table 91 Forecast Commercial Credit Cards: Number of Cards in Circulation 2020-2025
Table 92 Forecast Commercial Credit Cards Transactions 2020-2025
Table 93 Forecast Commercial Credit Cards in Circulation: % Growth 2020-2025
Table 94 Forecast Commercial Credit Cards Transactions: % Growth 2020-2025
Table 95 Forecast Personal Credit Cards: Number of Cards in Circulation 2020-2025
Table 96 Forecast Personal Credit Cards Transactions 2020-2025
Table 97 Forecast Personal Credit Cards in Circulation: % Growth 2020-2025
Table 98 Forecast Personal Credit Cards Transactions: % Growth 2020-2025

Debit Cards in Malaysia - Category analysis

KEY DATA FINDINGS

2020 IMPACT

Further upturn in demand for debit cards during pandemic as consumers are encouraged to go cashless although price sensitivity reduces overall value of transactions

Work from home measures during pandemic significantly reduce value of transactions through commercial debit cards

Increasingly competitive landscape as local issuers attempt to attract consumers with innovative features

RECOVERY AND OPPORTUNITIES

Government launches short-term financial stimulus package likely to support further fall in unbanked population

Greater uptake of debit cards predicted for forecast period as consumers continue to move away from cash transactions

Online sales through debit cards or mobile wallets likely to continue to rise despite concerns over fraud

CATEGORY DATA

Table 99 Debit Cards: Number of Cards in Circulation 2015-2020
Table 100 Debit Cards Transactions 2015-2020
Table 101 Debit Cards in Circulation: % Growth 2015-2020
Table 102 Debit Cards Transactions: % Growth 2015-2020
Table 103 Debit Cards: Number of Cards by Issuer 2015-2019
Table 104 Debit Cards: Number of Cards by Operator 2015-2019
Table 105 Debit Cards Payment Transaction Value by Issuer 2015-2019
Table 106 Debit Cards Payment Transaction Value by Operator 2015-2019
Table 107 Forecast Debit Cards: Number of Cards in Circulation 2020-2025
Table 108 Forecast Debit Cards Transactions 2020-2025
Table 109 Forecast Debit Cards in Circulation: % Growth 2020-2025
Table 110 Forecast Debit Cards Transactions: % Growth 2020-2025

Pre-Paid Cards in Malaysia - Category analysis

KEY DATA FINDINGS

2020 IMPACT

Increasing demand for pre-paid cards in 2020 following emergence of COVID-19 and government push to make non-cash payments

Smaller category of closed loop pre-paid cards also performs well in 2020

Touch 'n Go consolidates position as dominant local issuer but BigPay continues to impress

RECOVERY AND OPPORTUNITIES

Positive performance predicted for pre-paid cards as Malaysia continues to move towards a cashless society, attracting the unbanked population

Issuers which offer greater flexibility likely to address increasing competition from e-wallets

Slower growth predicted for pre-paid cards in circulation as banks focus their attention on issuing debit cards to compete with e-wallets

CATEGORY DATA

Table 111 Pre-paid Cards: Number of Cards in Circulation 2015-2020
Table 112 Pre-paid Cards Transactions 2015-2020
Table 113 Pre-paid Cards in Circulation: % Growth 2015-2020
Table 114 Pre-paid Cards Transactions: % Growth 2015-2020
Table 115 Closed Loop Pre-paid Cards Transactions 2015-2020
Table 116 Closed Loop Pre-paid Cards Transactions: % Growth 2015-2020
Table 117 Open Loop Pre-paid Cards Transactions 2015-2020
Table 118 Open Loop Pre-paid Cards Transactions: % Growth 2015-2020
Table 119 Pre-paid Cards: Number of Cards by Issuer 2015-2019
Table 120 Pre-paid Cards: Number of Cards by Operator 2015-2019
Table 121 Pre-paid Cards Transaction Value by Issuer 2015-2019
Table 122 Pre-paid Cards Transaction Value by Operator 2015-2019
Table 123 Closed Loop Pre-paid Cards: Number of Cards by Issuer 2015-2019
Table 124 Closed Loop Pre-paid Cards: Number of Cards by Operator 2015-2019
Table 125 Closed Loop Pre-paid Cards Transaction Value by Issuer 2015-2019
Table 126 Closed Loop Pre-paid Cards Transaction Value by Operator 2015-2019
Table 127 Open Loop Pre-paid Cards: Number of Cards by Issuer 2015-2019
Table 128 Open Loop Pre-paid Cards: Number of Cards by Operator 2015-2019
Table 129 Open Loop Pre-paid Cards Transaction Value by Issuer 2015-2019
Table 130 Open Loop Pre-paid Cards Transaction Value by Operator 2015-2019
Table 131 Forecast Pre-paid Cards: Number of Cards in Circulation 2020-2025
Table 132 Forecast Pre-paid Cards Transactions 2020-2025
Table 133 Forecast Pre-paid Cards in Circulation: % Growth 2020-2025
Table 134 Forecast Pre-paid Cards Transactions: % Growth 2020-2025
Table 135 Forecast Closed Loop Pre-paid Cards Transactions 2020-2025
Table 136 Forecast Closed Loop Pre-paid Cards Transactions: % Growth 2020-2025
Table 137 Forecast Open Loop Pre-paid Cards Transactions 2020-2025
Table 138 Forecast Open Loop Pre-paid Cards Transactions: % Growth 2020-2025

Megatrends

Country Report

Financial Cards and Payments in Malaysia

New Report Guarantee

Executive Summary

New Report Guarantee

COVID-19 impact on consumer payments

COVID-19 country impact

Weak consumer sentiment in line with unemployment and decreasing disposable incomes prompts government to launch fiscal stimulus packages

Emergence of pandemic boosts digital payment methods

Touch ‘n Go remains overall issuer of financial cards but Malayan Banking strengthens lead of card payment transactions

What next for consumer payments?

Overview

Why buy this report?

Samples (FAQs about samples):

Want to find out more about this report?

Table of Contents

Financial Cards and Payments in Malaysia - Industry Overview

EXECUTIVE SUMMARY

COVID-19 impact on consumer payments

COVID-19 country impact

Weak consumer sentiment in line with unemployment and decreasing disposable incomes prompts government to launch fiscal stimulus packages

Emergence of pandemic boosts digital payment methods

Touch ‘n Go remains overall issuer of financial cards but Malayan Banking strengthens lead of card payment transactions

What next for consumer payments?

MARKET INDICATORS

MARKET DATA

DISCLAIMER

GLOBAL MACROECONOMIC ENVIRONMENT

GLOBAL INDUSTRY ENVIRONMENT

SOURCES

Charge Cards in Malaysia - Category analysis

KEY DATA FINDINGS

2020 IMPACT

Lockdown measures in response to COVID-19 significantly restricts travel opportunities amongst affluent consumer group, resulting in declines for personal charge cards

Work from home and restricted travel for businesses result in lack of opportunity to use commercial charge cards

American Express remains leading local operator of charge cards in partnership with dominant issuer Malayan Banking

RECOVERY AND OPPORTUNITIES

Demand for charge cards predicted to fall as consumers increasingly drawn to other options with competitive reward schemes

Slight recovery predicted for commercial charge cards in terms of usage and value but category will struggle to return to pre-pandemic figures due to growing competition from other options

Charge card operators will need to be more creative in order to compete with credit card offers over the forecast period to offer greater differentiation

CATEGORY DATA

Credit Cards in Malaysia - Category analysis

KEY DATA FINDINGS

2020 IMPACT

Decline for credit cards during pandemic due to increasing preference for debit cards but category remains dominant in terms of transaction value

Notable decline for commercial credit cards due to restricted travel and work from home measures

Competition intensifies amongst local issuers in 2020 with dynamic Malayan Banking launching a number of products to attract consumers

RECOVERY AND OPPORTUNITIES

Improved performance predicted for credit cards from 2021 as consumers continue to move away from cash transactions

Number of credit cards in circulation set to continue to decline as younger generations increasingly opt for debit cards

Greater segmentation likely in terms of targeting specific consumer groups by banks

CATEGORY DATA

Debit Cards in Malaysia - Category analysis

KEY DATA FINDINGS

2020 IMPACT

Further upturn in demand for debit cards during pandemic as consumers are encouraged to go cashless although price sensitivity reduces overall value of transactions

Work from home measures during pandemic significantly reduce value of transactions through commercial debit cards

Increasingly competitive landscape as local issuers attempt to attract consumers with innovative features

RECOVERY AND OPPORTUNITIES

Government launches short-term financial stimulus package likely to support further fall in unbanked population

Greater uptake of debit cards predicted for forecast period as consumers continue to move away from cash transactions

Online sales through debit cards or mobile wallets likely to continue to rise despite concerns over fraud

CATEGORY DATA

Pre-Paid Cards in Malaysia - Category analysis

KEY DATA FINDINGS

2020 IMPACT

Increasing demand for pre-paid cards in 2020 following emergence of COVID-19 and government push to make non-cash payments

Smaller category of closed loop pre-paid cards also performs well in 2020

Touch 'n Go consolidates position as dominant local issuer but BigPay continues to impress

RECOVERY AND OPPORTUNITIES

Positive performance predicted for pre-paid cards as Malaysia continues to move towards a cashless society, attracting the unbanked population

Issuers which offer greater flexibility likely to address increasing competition from e-wallets

Slower growth predicted for pre-paid cards in circulation as banks focus their attention on issuing debit cards to compete with e-wallets

CATEGORY DATA

Store Cards in Malaysia - Category analysis

2020 IMPACT

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