Non-Cash Payment Options in Malaysia

Non-cash payments such as payment cards as well as Internet and mobile banking are more efficient ways to complete transactions compared to cash. As such, the Malaysian government and the central bank, Bank Negara Malaysia, have embarked on a mission to bring Malaysia closer to becoming a cashless economy, which is in line with the country’s vision of becoming a developed nation by 2020. This research note aims to give a structured overview of the non-cash payment options, discuss the relevant policies that have been implemented since 2010, and the challenges that the country will face in adopting non-cash payment methods. The paper finds that the infrastructure which the government has been investing in to promote such payment methods that reflect the aims of the Financial Sector Blueprint 2011–2020 has met some level of success, but demand for non-cash payment instruments is lagging. To increase adoption, the central bank has to implement programmes to overcome the mindset of consumers, increase their trust towards non-cash payments and reduce their stickiness towards cash.