As consumers continue to embrace payments innovations that address their evolving needs, contactless payments has grown in importance as an e-payment method of choice via card or mobile phone, delivering seamless speed, convenience and security. According to Mastercard data, today millions of consumers pay with a simple tap in over eight million locations across 111 countries. Other reports also show that in 2017, contactless transactions account for 15 percent of all global transactions at point-of-sale (POS) and this is expected to grow to 53 percent within 5 years, which means that by 2022, more than 1 in 2 transactions globally will be contactless.
Perry Ong, Country Manager, Malaysia and Brunei, Mastercard says, “Malaysia is no exception as over the past year, Mastercard data shows an upward trend in the usage of contactless payments. Mastercard is seeing more and more Malaysians choosing contactless or ‘Tap and Go’ for smaller ticket items, whether it be for dining, pumping petrol or making purchases at a convenience store. Mastercard finds this encouraging as it shows Malaysians’ willingness to adapt to payment advancements and the confidence they have in contactless payments as a convenient, safe and smart way to pay for goods every day.”
Mastercard contactless transactions have grown by 195 percent in January to March 2018 period, as compared to the same timeframe last year with Malaysians using contactless payments mostly at restaurants, followed by hypermarts and gas stations. The increased usage of contactless payments has also been matched by keen interest from the business community as they see real value of faster, simpler checkout experience towards improving their sales.
Reform measures implemented by Bank Negara Malaysia have also helped to make the transition in the acceptance of payment cards more affordable to merchants. The cost savings to merchants is expected to be about RM168 million in 2016 and has been said to spur an increase in the number of POS terminals by 40 percent to 323,000 terminals in the same year.
By 2020, Malaysia is targeting 800,000 POS terminals and of the total, 30 percent will be contactless-enabled – the equivalent of nearly a quarter of a million terminals. Based on Mastercard data, the number of contactless terminals in Malaysia increased significantly, recording a jump of approximately 400 percent between 2016 and 2017.
“Mastercard data shows that Malaysia is on track to achieve its contactless targets as part of its larger commitment to accelerate digital payments access and adoption. Greater collaboration with industry players and continued education on the benefits of contactless payments among consumers and merchants will be the cornerstone in realizing this vision,” adds Perry.