A comprehensive overview of the cards, payments and consumer banking market in Malaysia.
Key Topics
Demographics and the economy
Payments environment
Malaysia cards market
Mobile payments
Profit pool
The networks in Malaysia
Key retail banks and issuers
Acquiring and processing
Online acquiring
Regulatory and other cards market information
Appendices: Data
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.
Payments Environment:
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.
Cards market:
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.
Mobile Payments:
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
Profit Pool:
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.
Card Networks:
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.
Online Acquiring:
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.
7-eleven
99 speedmart
ACI Worldwide
AirAsia
Alipay
Alliance Bank
AmBank
American Express
Ant Financial Services
Apple Pay
ASEAN
Association of Southeast Asian Nations
Bank Islam Malaysia
Bank Negara Malaysia
Bank of Chengdu
Bank of China
Bankard
Bayar
BigPay
BNM
Boost
Braintree
CIMB
CIMB Pay
Citi
Citibank
Cognizant
DBKL Parking
Digi Telecommunications
Diners Club
Direct Debit
DuitNow
eGHL
Emirates
EON Bank
EONCAP Islamic Bank
eSPICK
Etsy
EZ-link
FavePay
Financial Process Exchange
GHL Cardpay
Google
Grab
GrabPay
helloPay
HLB
Hong Leong Bank
HOUSe
HSBC
HSBC Amanah Malaysia
HSBC Bank Malaysia
IBG
IBM
ICBC
ICTF
Industrial and Commercial Bank of China
Interbank GIRO
Interoperable Credit Transfer Framework
iPay88
Ipmart
Jack Ma
JCB
JomPay
KiplePay
Lazada
Lelong
Loan2Go
Malaysia Airlines
Malaysia Electronic Payment System
Malaysian Digital Economy Corporation
Malaysian Electronic Clearing Corporation
ManagePay Systems
Mastercard
Maybank
MaybankPay
McDonald's
mCompass
MDEC
MEPS
MEPS-CASH
MIMB Investment Bank
MOLPay
MPay
MyClear
MyDebit
MyRapid Touch 'n Go
National Electronic Cheque Information Clearing System
NETS
NTT DATA
OCBC
OctoPay
ONEXOX
Pacific Malaysia
Payment Card Reform Framework
Payments Network Malaysia
PayNet
PayPal
Paysys Malaysia
PCRF
Petronas
PETRONAS Dagangan
PICKnGO
Public Bank
Qoo10
Rakuten
Razer
RazerPay
Real-Time Retail Payments Platform
Reflex
Retail Payments Platform
RHB Bank
RRP
Sadaqa House
Samsung Pay
SAN
Sarawak Pay
Shared ATM Network
Shell
SmartTAG
SnapNPay
Standard Chartered
SuperBuy
TAP Mobile Banking-I
Telekom Malaysia
Tencent
Tesco Malaysia
The Store
TnG
TnG Digital
Touch 'n Go
Touch 'n Go
Tun Razak Exchange
UnionPay
UOB
Vcash
Visa
WeChat Pay
Western Union
World Trade Platform
WorldRemit
XOX Mobile
Zalora
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.
See more Asia-Pacific Country Reports or explore the full range of cards and payments reports available for 72 markets worldwide.
To find out more or to discuss subscription options, please email: research_enquiries@verisk.com or telephone: +44(0)20 7337 4200.