Malaysian Central Bank said Monday that Malaysia is well on track to achieve the Financial Sector Blueprint 2022–2026 target of over 15 percent compounded annual growth in the average e-payment transactions per capita as e-payments transactions continue to rise in 2024.

Bank Negara Malaysia (BNM) said in its annual report that in 2024, e-payment transactions grew by 19 percent to 409 transactions per capita from 343 in 2023.

On average, this translates to every Malaysian making at least one e-payment transaction per day.

This marks a significant milestone in the progress of e-payment adoption in Malaysia, given that the average was only one transaction per week just over a decade ago.

According to the bank, the high growth in 2024 was supported by increasing consumption activity, with the total value of selected retail e-payment transactions increasing by 17 percent to reach MYR 698.1 billion ($157.46 billion) from MYR 592 billion ($133.53 billion) in 2023.

Among the different modes of e-payments, online banking remained the most widely used.

These transactions also grew the most in 2024, increasing by 24 percent (2023: 13 percent).

In terms of online banking channels, the share of mobile banking at 62 percent (2023: 50 percent), is higher than internet banking.

The second most widely used mode of e-payment is electronic money (e-money).

In 2024, e-money transactions increased by 25 percent (2023: 26 percent).

64 percent of e-money transactions was attributed to electronic wallets (e-wallets) with the remainder to card-based e-money (2023: 59 percent).

The average transaction size of e-money remained low at around MYR 33 ($7.44)(albeit higher than in 2023 at MYR 27 [$6.09]), indicating that this mode of payment is commonly used for everyday purchases.

Meanwhile, payment cards is the third most used mode of e-payment.

Payment card transactions grew by 20 percent in 2024 (2023: 26 percent), with debit cards accounting for 68 percent of the total payment card transactions (2023: 66 percent).

The growth in debit card usage grew by twice as fast as credit cards (24 percent versus 12 percent).

Contactless card transactions continued to gain traction given its speed and convenience, constituting 83 percent of payment card transactions at physical premises during the year (2023: 77 percent).

This growth has been supported by the growing adoption of mobile wallet usage in Malaysia such as Apple Pay, Google Pay and Samsung Pay, as well as the expansion of open toll payment systems across more highways during the year.

Acceptance of e-payment transactions have continued to rise among businesses, especially smaller-sized enterprises.

In particular, the usage of DuitNow QR continued to increase given its convenience, lower cost and wide coverage.

There are 2.6 million registered DuitNow QR acceptance points across Malaysia as at end-2024 as compared to 2 million in 2023.

The wider DuitNow QR merchant network has contributed to an increase in DuitNow QR transactions by more than double (2024: 870 million; 2023: 360 million), with total transaction value amounting to MYR 31.1 billion ($7.01 billion) from MYR 14.6 billion ($3.29 billion) in 2023.

In 2025, BNM said its focus is to ensure that payment systems and money services business (MSB) services in Malaysia remain safe, efficient and fit-for-purpose.

“To this end, we will continue to proactively identify and address emerging risks through ongoing supervisory activities and continue strengthening our regulatory framework,” said the bank.

The bank will also work closely with the public and private sectors to preserve public confidence in the use of payment and MSB services and promote responsible innovation.

“This is especially important in the fight against financial fraud, where we intend to enhance collaboration with key stakeholders, such as the law enforcement agencies and relevant parties in the communication sector, while also ensuring effective implementation of existing countermeasures,” it said.

Additionally, BNM said it will strengthen its collaboration with international stakeholders, in line with Malaysia’s ASEAN Chairmanship in 2025 and BNM’s role as co-chair of the
ASEAN WC–PSS.

“The goal is to further expand instant payment connectivity and its use in the region, enabling more people to benefit from safe, efficient and affordable cross-border payments,

“Importantly, we will continue to futureproof domestic payment infrastructures through our ongoing work on Real Time Electronic Transfer of Funds and Securities System (RENTAS) and central bank digital currency (CBDC), as well as intensifying exploratory work on other emerging technologies such as asset tokenization, in line with aspirations of the Blueprint,” it said.

It added this is to ensure that payment infrastructures are responsive to the evolving needs of the financial system and broader economy.

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