QR payments have emerged as a preferred option among Malaysians, with transaction volumes on the DuitNow QR more than doubling to three billion transactions in 2025, underscoring both the scale and speed of adoption, Bank Negara Malaysia said.

Speaking at a forum on last Thursday, Governor Abdul Rasheed Ghaffour said in his keynote speech that the rapid uptake reflects a broader structural shift towards digital payments, with Malaysia now increasingly operating as a cash-light economy.

He noted that individuals in Malaysia now make, on average, more than one digital payment a day, compared with once a week a decade ago, highlighting rising confidence and accessibility in the system.

Abdul Rasheed said the growth in QR payments has been driven by convenience, cost efficiency and ease of use, making it widely accepted by merchants across the country.

The DuitNow QR ecosystem has expanded to more than three million touchpoints nationwide, including small and micro businesses.

He cited examples such as Pulau Redang, where over 90 percent of businesses now accept digital payments following targeted industry collaboration, with nearly half of merchants reporting revenue increases of more than 50 percent.

Beyond domestic adoption, he said Malaysia is also strengthening cross-border payment connectivity, particularly in ASEAN, where over 70 million micro, small, and medium enterprises (MSMEs) face friction in payment processes rather than trade access.

As of end-2025, Malaysia has established 29 payment linkages with regional partners through platforms such as PayNet and Alipay+, with initiatives like Project Nexus aimed at further improving interoperability and reducing settlement frictions.

However, Abdul Rasheed cautioned that infrastructure alone is not enough, stressing the need for broader merchant inclusion and deeper usage among MSMEs to fully unlock the benefits of regional connectivity.

He also warned that the rapid expansion of instant payments brings new risks, particularly in fraud and cyber threats, which require proactive, real-time detection and response systems.

He highlighted Malaysia’s National Fraud Portal as a key industry-wide initiative, now being enhanced with predictive analytics to detect threats before they materialize.

At the same time, he said faster payments must be supported by resilient back-end infrastructure, including near real-time settlement systems such as RENTAS+, to reduce credit and settlement risks.

“Payments must not only be fast, but consistently reliable, safe and secure,” he said, adding that trust remains the foundation of the digital financial system.

Looking ahead, Abdul Rasheed said innovation must be pursued responsibly, supported by structured frameworks such as Bank Negara’s regulatory sandbox and Digital Asset Innovation Hub, which are testing use cases including tokenized deposits and stablecoins.

He added that artificial intelligence in financial services must be governed with strong accountability and transparency as it becomes increasingly embedded in decision-making processes.

He concluded that Malaysia’s approach aims to ensure that digital payment innovation continues to advance while preserving financial stability, inclusivity and public trust.

Malaysia’s digital payments rise as 8.44 billion transactions processed in 2025