The most popular payment methods in Malaysia

Change is happening fast in Malaysia, with the digital economy at an all-time high. Alternative Payment Methods (APMs) are quickly becoming the future of payments here.

Malaysia’s digital market is growing rapidly, and the country continues to make progress towards its goal of becoming a cashless society by 2030, making it a prime opportunity for business expansion.

Despite its relatively small population, Malaysia’s digital commerce is expected to exceed $30 million per capita by 2028.

The gross transaction value of digital payments in Malaysia increased by more than $13 billion in 2023 and is forecast to reach approximately $207 billion by the end of 2025.

Previously heavily reliant on cash, following the pandemic, Malaysia became the second leading country in Southeast Asia for the rate of cashless payments adoption.

With the online payment market expanding rapidly, businesses must start offering the payment methods that customers want.

The value of electronic money transactions in Malaysia reached more than 100 billion Malaysian ringgit in 2023.

Several fast-growing digital payment methods in Malaysia are behind this growth. Perhaps none more so than digital wallets, where adoption has risen significantly in recent years, driven by incentives from the government, wallet providers and merchants.

QR codes are also gaining popularity, with 61% of Malaysian consumers having used them to make payments, up from just 25% the year before.

Buy Now, Pay Later (BNPL) is another area in which transaction volumes are growing. By 2027, BNPL is expected to account for 6% of e-commerce transactions, up from 2% in 2022.

The most popular digital wallet in Malaysia is Touch’n Go, used by a staggering 90% of consumers. Other popular digital wallets in the country include Grab Pay, Boost, ShopeePay and MAE.

Cross-border spending accounts for 44% of all Malaysian e-commerce sales, with 52% of Malaysian shoppers spending cross-border.

The preferred payment methods in Malaysia are A2A, digital wallets, credit and debit cards, and other payment methods such as BNPL and prepaid cards.

A2A payments continue to be the most popular alternative payment method in Malaysia. Built on real-time payment rails, they are revolutionising the payments landscape.

Digital wallets come in second place, accounting for a quarter of e-commerce payments. Credit cards account for 16%.

By leveraging Malaysia's range of APMs, you can reduce cart abandonment, improve conversions, and provide a seamless customer experience.

Ecommpay supports multiple payment methods in Malaysia, including digital wallets, online banking, and bank transfers.

Our Malaysia online banking method gives merchants access to an electronic payment system where they can offer their customers access to a list of Malaysia’s local banks.

First introduced as a contactless payment card in 1997 used on toll booths and public transport, Touch ‘n Go is now Malaysia’s most popular digital wallet and is used for everything from parking to online shopping.

With 90% of consumers in Malaysia using Touch n’ Go, if you’re planning to expand your business to this country, you can’t afford not to be offering this digital wallet to your customers.

As the country’s second most popular wallet, Grab has over 17 million users in Malaysia, with this figure expected to reach more than 28 million in 2025. There are more than 3,000 merchants across the GrabPay network in Malaysia with people commonly using this digital wallet for both online and physical stores as well as food stalls.

Consumers make payments by entering their phone number and one-time verification code.

Boost is a prepaid wallet that consumers top up with credit, and can then use to pay bills, transfer money, send money to friends, pay for transport, and use for online shopping. Many merchants provide Boost as a payment method, from online health, beauty and fashion retailers, to restaurants, grocery stores, and petrol stations.

Bank transfers remain a dependable option for large transactions in Malaysia. The biggest banks in Malaysia's finance sector are Maybank, CIMB, Public Bank Berhad, RHB Bank and AmBank.

Malaysia has made considerable strides in its digital journey. We can help you take advantage of this momentum by advising on, and providing, the payment methods you need to reach new customers in this region.

Let’s grow, together