Value of electronic money transactions in Malaysia 2016-2023

The value of electronic money transactions in Malaysia reached around 106 billion Malaysian ringgit in 2023, an increase of around 35 billion Malaysian ringgit from the previous year. E-money is usually stored in e-wallets, with some of the most popular e-wallets in Malaysia including Touch n’ Go and Grab pay. The increase in transaction value in 2023 showed that e-wallets are becoming more commonly used as a cashless payment method across the country.

Current trend driven by e-commerce

The share of e-commerce to the gross domestic product (GDP) in Malaysia showed a three percent increase in 2020 when the COVID-19 pandemic began. This current trend in e-commerce had an effect on the popularity of e-wallets, due to the fact that consumers purchased more online during the movement control order (MCO). Although restrictions have now been lifted, paying for e-commerce sites is still the leading reason for consumers in Malaysia to use their digital payment systems.

Better regulations for e-money

There are now many e-wallet services for consumers in Malaysia to store and use their e-money. The current trend compelled the Malaysian government to impose better regulations, especially for non-bank e-money issuers. At the end of 2022, the Central Bank of Malaysia issued a policy document to ensure better safety and governance of the cashless payment system.

In 2021, the per capita transaction of e-money in Malaysia already reached more than 2,100 Malaysian ringgit. With the assurance of better regulations, cashless payment will likely become the preferred option among Malaysian consumers.