Almost 60% of Malaysians used digital payment options in 2025, signalling a continued move away from cash, according to Ipsos Malaysia’s “Non-Cash Economy & the Role of E-Wallets” report.
Non-cash payments have become the primary method for purchasing goods and services, with e-wallets posting the strongest growth at 14%, followed by increased adoption of online bank transfers. Debit and credit cards were the least frequently used payment methods among respondents.
Separately, GlobalData projected that Malaysia’s payment card market—including point-of-sale (POS) transactions and ATM cash withdrawals—would grow by 4% to reach $177.9 billion (MYR814.1 billion) by 2025.
The data and analytics firm noted in its May 2025 report that broader card acceptance and the expansion of contactless payment technology are expected to drive this growth.
The value of payment card transactions in Malaysia grew at a compound annual growth rate (CAGR) of 8% between 2020 and 2024, reaching $171.1 billion (MYR783 billion).
Meanwhile, cash usage continues to decline, with ATM cash withdrawals accounting for 49.8% of the market in 2025, down from 63.3% in 2021.
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