The Malaysian Payment Landscape syndicated report has also revealed that 63% of Malaysians use debit cards and 57% use online banking, mostly to make payments for recurring expenses such as phone and internet bills. It said only 27% use credit cards to pay for their expenses and even fewer use mobile wallets at 8%.
The management company said that payment preferences also shift depending on the type of expenses. While two in three Malaysians have a debit card, it said its usage for day-to-day expenses remained relatively low, as cash is overwhelmingly preferred for everyday activities.
It added that the use of credit cards to pay for everyday expenses is comparatively low; only one in four Malaysians use a credit card for this purpose, mainly those aged between 35 and 64.
According to the report, while awareness on mobile wallets in Malaysia is high (88%), concerns on security and fraud are the biggest barrier to adoption with 50% of non-users citing security as the main reason for not making the switch to mobile wallets.
Another barrier is the fear of overspending, it said, with one in three consumers abstaining from using mobile wallets to avoid spending beyond their means.
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