What type of payment method you’re using when you make payments online?
The exponential growth of cross-border e-commerce has precipitated the rise of different payment methods. There is an endless number of payment methods to match all payment contexts such as pay in advance, pay afterwards, payment and delivery at the same time. Let’s take a look at the payment methods available for e-commerce in Malaysia.
According to Worldpay Global Payments Report 2016, credit cards are still the most popular payment method, with 66% of total transactions are completed using credit cards in Malaysia. Bank transfers are also proving to be very popular – recorded 20% of the total transaction. This is followed by debit card (5%), cash on delivery (3%), e-Wallet (3%), prepaid (1%), prepay (1%) and other payment methods (1%).
Generally, Visa and Mastercard are the most popular card schemes used for credit card transactions in Malaysia, both recorded 55% and 43% respectively whereas other local card schemes comprised 2%.
Malaysia has 30.8 million of population in 2016 with 72% of the population having access to the internet. More population having the access to the internet means the growth of e-commerce in Malaysia will be looking good in the coming years. Hence, the turnover for e-commerce is projected to reach US$4bn in 2020 from US$2bn in 2016.
However, the dominance of credit cards is expected to decline significantly over the next few years, as alternative payment methods become more established.