A comprehensive overview of the cards, payments and consumer banking market in Malaysia.
Demographics and the economy
Malaysia cards market
The networks in Malaysia
Key retail banks and issuers
Acquiring and processing
Regulatory and other cards market information
Appendix I: Demographics and the economy
Appendix II: Payments environment
Appendix III: Cards market
Appendix IV: Mobile payments
Appendix V: Profit pool
Appendix VI: The networks
Appendix VII: Key retail banks and issuers
Appendix VIII: Acquirers and processing
Appendix IX: Online acquiring
Demographics and Economy:
It is expected that Malaysia's main economic sectors will record positive growth, with healthy growth in the service and manufacturing sectors in particular. These two sectors are the largest contributors to the economy, accounting for approximately 79% of GDP, according to the government.
Malaysia remains a largely cash-based society with cash in circulation equivalent to two-thirds of GDP in 2018. Cash is often used for payments at small businesses, including traditional wet markets and hawker centres (open-air food courts). Nevertheless, the use of non-cash retail payments continues to grow.
There were 113.9 million payment cards in the country at the end of 2018 (including credit cards, charge cards, debit cards and e-money cards), a 15% increase over the year before. Malaysia has one of the world's highest cards penetration rates, predominantly because over half are e-money cards.
The country has a vibrant mobile payments market with a wide range of banks and e-money issuers competing. BNM is actively supporting further development through liberal e-money regulation and the integration of its own e-wallet, MEPS-CASH, into MyDebit, the national debit card, which is distributed by all domestic banks
Profitability of Malaysia's credit cards market has followed an upward trend, thanks largely to growth in card numbers. As is the case in many markets globally, issuer portfolios in Malaysia have gradually shifted towards less risky transactors in the last decade.
Malaysia has a competitive credit cards market, with all the major international brands present: Visa, Mastercard and American Express. There are three debit card networks operating in Malaysia: Visa, Mastercard and domestic network MyDebit. The majority of Visa- and Mastercard- branded cards are co-badged with MyDebit.
Key Retail Banks and Issuers:
The credit cards market is very competitive with about 26 credit cards issuers serving a population of 32 million, of which only a minority are eligible for a credit card. The largest four credit cards issuers – Maybank, CIMB Bank, Citibank and Hong Leong Bank – collectively had a market share of 59% in 2018.
Acquiring and Processing:
Malaysia's merchant acquiring market is highly competitive, with most issuers offering acquiring services. The three largest merchant acquirers – Maybank, AmBank and CIMB – collectively accounted for an estimated 72% market share in 2018 in terms of acquired transactions.
The e-commerce market had estimated revenue of $3.4 billion in 2018 and is expected to experience healthy double-digit growth through the forecast period.
Regulatory and Markets Information:
The government is focusing on the interoperability of networks to expand digital payments. There are two types of payment systems in place – the large-value payment system (SIPS) and the retail payment system.
Ant Financial Services
Association of Southeast Asian Nations
Bank Islam Malaysia
Bank Negara Malaysia
Bank of Chengdu
Bank of China
EONCAP Islamic Bank
Financial Process Exchange
Hong Leong Bank
HSBC Amanah Malaysia
HSBC Bank Malaysia
Industrial and Commercial Bank of China
Interoperable Credit Transfer Framework
Malaysia Electronic Payment System
Malaysian Digital Economy Corporation
Malaysian Electronic Clearing Corporation
MIMB Investment Bank
MyRapid Touch 'n Go
National Electronic Cheque Information Clearing System
Payment Card Reform Framework
Payments Network Malaysia
Real-Time Retail Payments Platform
Retail Payments Platform
Shared ATM Network
TAP Mobile Banking-I
Touch 'n Go
Touch 'n Go
Tun Razak Exchange
World Trade Platform
Verisk financial reports include detailed market and competitor intelligence on payments cards, e-money, acquiring, retail banking, and consumer credit in the Asia Pacific region. Analysts use primary and secondary source data and conduct in-depth interviews with senior industry executives and finance experts.
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