Malaysians have remained at home since the epidemic began. Each family was only permitted a certain number of individuals to go shopping for everyday essentials. Malaysians turned to the internet platforms for daily purchases and seek services to be safe. This resulted in an unparalleled increase in e-commerce growth and digital payments were boosted by COVID-19.
Money transfer is the most commonly used form of payment in Malaysia for e-commerce. Financial Process Exchange (FPX), a Malaysia-based private payment platform, has contributed to public confidence by providing a reliable and easy transaction system that allows consumers to make transactions online using their bank credentials.
Despite the rapid growth of bank transfers, credit cards are on the increase. Credit card expansion is influenced by strong marketing efforts with enticing rewards, enhanced banking equipment, and greater point-of-sale card approval among Malaysians.
Digital wallets and e-wallets are also popular payment options in Malaysia. Malaysia is the Southeast Asia leader in the adoption of digital wallets. Although there are various digital wallets, e-wallets, and perhaps even mobile wallets, they are all fundamentally the same digital payment method, but to their own set of user advantages and efficiencies.
Despite rising online payment trends, cash on delivery payment remains very popular. COD was formerly among the most popular forms of payment owing to security worries about online payments, but it fell out of favor as payment gateway companies upgraded their protection and verification procedures.
These popular payment methods should be kept in mind when companies are trying to connect with consumers, as now it is one of the things that could make or break a companies’ success online. Companies must be willing to adapt and provide consumers with a variety of options, catering to the ever-growing demand.