If you grew up using shillings or small notes in exchange for some finger food back in the book-carrying days, you would understand the pinch of not having any cash inside your wallet because that would also mean skipping a meal or maybe owing someone else money.
Does that ring any bell in your head?
How about recalling the insecurity that you felt before when your wallet ran low on notes?
Do Malaysians believe in going cashless?
To be fair, it does feel like you were hanging by a thread back in those days before digital payment was introduced.
Fast forward to the present, Malaysia is progressively making its way to becoming a cashless society due to its advantages over cash.
Today, it makes more sense to leave the house with an empty wallet but you could still come home full-handed (depends on what you purchase, of course).
So, how much are you familiar with going cashless?
Why cashless payment in Malaysia?
So, what is cashless payment? Going cashless means getting rid of physical money and choosing to perform a fund transaction online instead.
There is a saying that goes “You’ll miss it when it’s gone”, but this practice could mean for the better.
Money is one of the key survival tools in this world and it is hard to find someone who fails to see its value.
Having abundant cash brings you more than just emotional security but it also comes with a taste of the harsh reality.
Money attracts people and troubles, as well. The more cash you have, the higher the risk you expose yourself to threats. This is especially true when Malaysia is known for its unpredictable events.
In fact, a survey by Free Malaysia Today shows that Malaysians are becoming increasingly comfortable with going cashless. Many believed that they could last a few days without having any cash on them.
New opportunities arise for Malaysians
It is almost impossible to ignore the groundwork Malaysia has laid to encourage the acceptance of digital transactions.
Since then, the outlook has been optimistic as Bank Negara Malaysia (BNM) shares an increasing number of Malaysians adopting cashless payment methods for the first quarter of 2018.
Be it one way or another, cashless initiatives put the government and people at an advantage. Besides making easier tracking and collection for tax, fraud activities become harder to pursue as digital footprints are present for every transaction made.
While we should not forget the value that cash has brought into our lives, it is also important to recognize the milestones that digital transactions have achieved.
Gone were the tedious shopping trips, as the convenience brought by online payment, mobile wallets, debit cards or credit cards have sent goods to our doorsteps instead.
Shopping from the comfort of home has never been more ideal. Besides, discounts offered to buyers when they make payments online also further encouraged consumers to go digital.
Adopting cashless payment methods
Of course, getting Malaysians to adopt cashless payment methods as a permanent solution in their lives definitely takes time to run its course.
The first step to embracing the future of payment starts with educating people with the right information. Relevant parties play a vital role in ensuring that people’s confidence is built over time as Malaysia gradually implements an electronic payment system in different sectors of business.
According to The Malaysian Reserve about the cashless society in Malaysia, 80% of transactions in the country are still driven by cash while the remaining 20% are done by online banking or credit cards.
However, it is not surprising to witness this occurrence in the country as many business operators are still relying on physical money payments.
This still poses a challenge for Malaysians to independently rely on cashless payment as it would be quite rare to pay without cash in hawker centers, night markets, or even mamak stalls.
However, the technology is slowly being embraced by small businesses with the emergence of e-wallets and QR pay, which provide lots of advantages to these businesses to grow further with cashless payments.
The emergence of e-wallets and QR pay
Nevertheless, Malaysia can be seen working its way up to digitalizing its economy as many digital players in the market are launching various digital services to improve consumers’ lifestyles.
The time has never been more right for Malaysia to accept digital payment platforms like e-wallet as its emergence has the potential to transform the traditional payment process through the transaction of e-money.
This new mode of payment will change consumer’s perspective towards cash as e-money will now facilitate the payment process.
The convenience allows users to scan a Quick Response (QR) code provided at payment counters via the provider’s mobile application.
Embrace the future of payment together
It will be just a matter of time before the acceptance of cashless payment in Malaysia becomes viral as youth holds the greatest purchasing power and they are among the majority to adopt technology in their lives.
This is why as a payment gateway provider at iPay88, we see the importance of educating consumers from early with the right payment solutions as this could increase their confidence to make payments online frequently.
To find out more about iPay88 and our services, talk to us today and find out how you can make a difference to your business.
