55% Of Malaysians Now Pay Cashless As E-Wallets See Major Surge In F&B and Retail

55% of Malaysians have used cashless payments in the past three months, and the adoption of cashless transactions is becoming more prevalent as e-wallets make inroads into F&B and retail.

According to the latest Ipsos study titled “Non-cash Economy and the Role of E-wallets” of 1,020 Malaysians aged 18 to 74, the pandemic has been a great accelerator as e-wallets are increasing their presence across channels. More than half of Malaysians now have an average of two non-cash payment modes at their disposal.

E-wallets are quickly becoming all-purpose payment methods – over the past year; there’s been significant growth in e-wallet usage for over-the-counter purchases. In 2022, the continued growth in usage is driven by physical F&B and retail as Malaysians are out and about again. Adoption of e-wallets continues among the youth, while for the older population, the growth appears to have topped out. Furthermore, e-wallets continue to be more common in the more urban and affluent segments. As e-wallet payment becomes viable across channels, there’s an indication that consumers are finding their favourites and sticking with it.

Among the cashless channels, primary mediums include online banking (36%), debit card (32%), e-wallet (27%) and credit card (8%). Primarily dominant among younger consumers, cashless payments are seen largely taking place at F&B outlets and retail stores as well. Other cashless transactions include tolls and parking (49%), F&B outlets (46%), retail stores (45%), food deliveries (35%), online purchases (33%), bill payments (25%) and money transfers to friends and family (22%).



The report revealed that “The continued growth is primarily driven by the younger population, while adaption has stalled for the older age groups. In addition, E-wallet usage continues to skew heavily towards urban high-income segments; however, usage is also picking up among the lower income groups.”

The study also found that Touch ‘n Go remains the preferred e-wallet, cementing its dominant position and increasing its presence across more channels. These are followed by Malayan Banking Bhd online payment (28%), ShopeePay (21%), Boost (16%), Grab Pay (16%), Setel (4%), Alipay (2%) and Razer Pay (1%).