Malaysia ranks second globally in QR code payments with 61.5% adoption, thanks to innovations like DuitNow QR, facilitating easier transactions for businesses. However, caution is advised against fully transitioning to a cashless society, as segments of the population still depend on cash.
The rise of cashless transactions in Malaysia has significantly accelerated, with QR code payments now accounting for 61.5% of payment methods, placing the country second globally behind China at 67.4%. This growth in QR code usage positions Malaysia ahead of other developed nations such as the UK and the US, showcasing a marked shift in consumer payment preferences.
The widespread use of QR codes can be attributed to their accessibility and the strategic push from both financial technology innovations and government initiatives. The launch of DuitNow QR has unified various payment platforms, allowing businesses to utilize a singular QR code, enhancing convenience for both merchants and customers, and promoting broad adoption across different sectors.
DuitNow QR has seen remarkable growth since its inception in 2019, reaching 2 million registered merchants and recording 360 million transactions valued at RM 14.6 billion. Small businesses constitute 80% of these merchants, demonstrating the platform’s importance in facilitating transactions for those with lower sales volumes. The increase in registered DuitNow QR codes from 0.3 million in 2019 to 2.0 million in 2023 underscores Malaysia’s strong position in the QR payment landscape.
However, there is a cautionary note against advocating for an entirely cashless society. The backlash against excessive cashless payment measures highlights the need for balance, especially in rural communities and among older populations who may still rely on cash. While digital payments are effective and safe, maintaining access to cash is essential to avoid alienating segments of the population that are not yet ready to make the transition.
In conclusion, Malaysia’s ascent to the second-highest rank in global QR code payment adoption reflects significant advancements in digital payment systems. The success of the DuitNow QR initiative has facilitated seamless transactions, particularly for small businesses. However, a balanced approach toward cashless payment adoption is essential to accommodate those who still rely on cash. Maintaining this balance will ensure that the transition to digital payments is inclusive rather than isolating.
Original Source: fintechnews.my
