Due to oronacrisis, the demand for contactless and online payments will fuel the growth of the payment card market over the next few years
Malaysia’s card payment market will reach $80.2 billion in 2025, GlobalData reports. In fact, the cost of card payments in Malaysia has decreased by 4.9% in 2020.
Restrictions on isolation and social distancing to contain the spread of the virus have led to cuts in consumer spending and the closure of brick-and-mortar stores, affecting card payments.
However, as economic conditions improve and the vaccination program accelerates, card payments are expected to grow 8.5% in 2021. Moreover, GlobalData predicts that the cost of card payments will grow at a CAGR of 11.1% through 2025.
Credit and debit cards are the most preferred type of card for payments in Malaysia, primarily because of the bonuses offered on these cards. They account for 66.5% of all card payments by value in 2021, while debit cards account for the remaining 33.5%.
In spite of an overall decline in the number of card payments, the debit card performed a 13.6% increase in 2020 due to the migration of cash transactions to debit cards and the growing preference for debit cards for contactless payments, as most debit cards in the country have contactless functionality.
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