30/11/2025

ON SUNDAY November 30, 2025 theSunday Special V

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become a powerful yet less visible force in Malaysia’s commerce. “It enables businesses to serve om QLFKDQQHO FXVWRPHUV Ḣ FLHQWO\ E\ OLQNLQJ payment methods. 76% of businesses have used payment orchestration for RYHU ¿YH \HDUV DQG SODQ WR LQFUHDVH investment,” he explained. For SMBs, orchestration levels the SOD\LQJ ¿HOG LQWHJUDWLQJ EDFN Ṙ FH IXQF tions and improving fraud prevention. “Nearly 89% of businesses report gains LQ Ḣ FLHQF\ DQG FXVWRPHU H[SHULHQFH With AI, these advantages will only deep en, from instant vendor disbursements to automated fraud checks,” he said. Keeping the local touch Despite advances, Malaysia’s consumers still value person-to-person interactions. Tantri acknowledged this cultural dimen sion. “Customer relationships, local language options and community engagement are central,” he said. “Mobile wallets and QR code payments allow secure transactions while retaining face-to-face connections. This balance helps businesses scale without losing the human touch.” So which trends will shape Malaysia’s small business sector most profoundly in the coming years? Tantri pointed to the growth of digital payments, particularly cards and mobile wallets. “The e-commerce market is projected to grow to RM67.1 billion by 2028. The demand for comprehensive, integrated payment solutions will be crucial. The integration of AI and digital security tools ZLOO EROVWHU WUXVW DQG Ḣ FLHQF\ KHOSLQJ combat fraud and protect customer data,” Tantri concluded with a reinforcement. For Malaysia’s small businesses, the message is clear: Digital transformation is no longer optional. From night market stalls to established retailers, the tools shaping tomorrow’s payments are already here. The challenge lies in adopting them LQ ZD\V WKDW DUH VHFXUH Ḣ FLHQW DQG VWLOO rooted in the uniquely local character of Malaysian commerce.

Live selling and the social commerce boom Few trends have captured the imagina tion of Malaysian consumers. From live streams to digital shops, merchants are meeting customers where they spend most of their time: Online. “The growth of live selling and social FRPPHUFH UHÀHFWV D VLJQL¿FDQW VKLIW LQ consumer behaviour,” Tantri explained. “ 8QL¿HG SODWIRUPV DUH EHFRPLQJ HV sential tools for streamlining orders, SD\PHQWV DQG IXO¿OPHQW LQ UHDO WLPH 7KH\ allow sellers to connect with consumers in an interactive, engaging way. “The survey revealed that 29% of busi nesses are incorporating live commerce into their strategies. However, adoption remains uneven. Larger enterprises are experimenting faster, while SMBs lag due WR GL̆ HUHQFHV LQ WHFKQRORJLFDO UHDGLQHVV Still, the potential is immense. “Consumers prefer to complete pur chases without leaving the platform. As costs fall and risks diminish, we can expect more SMBs to embrace live commerce,” said Tantri. A UWL¿FLDO LQWHOOLJHQFH DW WKH frontlines Artificial intelligence (AI) is no longer FRQ¿QHG WR WHFK JLDQWV 6PDOO EXVLQHVVHV across Southeast Asia are beginning to harness their power in areas ranging from fraud detection to customer engagement. “AI is enhancing customer interac tions by automating routine tasks like appointment scheduling and generating marketing reports,” Tantri noted. “ ,W FDQ DQDO\VH WUDQVDFWLRQ GDWD WR ÀDJ unusual patterns, protecting businesses against fraudulent activity. Major proces sors have invested heavily in these tools, DOORZLQJ 60%V WR EHQH¿W ´ He also highlighted AI’s role in per sonalisation. “By using historical shopping patterns, AI can provide tailored recommendations, creating a frictionless experience. An impressive 94% of SMBs in our survey are testing or deploying AI technologies. This GHPRFUDWLVDWLRQ PHDQV VPDOOHU ¿UPV QRZ KDYH DFFHVV WR Ḣ FLHQFLHV RQFH UHVHUYHG for large enterprises.” The transformation of point-of sale systems Point-of-sale (POS) terminals were once

“Biometric authentication, such as ¿QJHUSULQW DQG IDFLDO UHFRJQLWLRQ HQVXUHV secure transactions without compromis ing user convenience,” said Tantri. “This integration of security and con venience is crucial for building consumer trust.” Embedded payments for SMEs In the business-to-business (B2B) space, embedded payments are opening new possibilities. Traditionally reliant on invoicing and manual transfers, SMEs now have the chance to adopt systems that R̆ HU D FRQVXPHU JUDGH OHYHO RI HDVH RI XVH “As B2B spending moves online, suppliers and buyers want integrated solutions that are fast and secure. While larger enterprises have used embedded payments for years, SMBs are now ramp ing up investment in them. In fact, 82% plan to expand their capabilities in this area,” Tantri further explained. T KH EHQH¿WV JR EH\RQG Ḣ FLHQF\ “Embedded payments reduce steps in the transaction process, streamline supply chains and improve overall productivity,” he added. Behind the scenes Payment orchestration – coordinating multiple channels and providers has

simple machines for card payments. Today, they are becoming sophisticated hubs of business intelligence. “The number of POS terminals in Malaysia grew from 738,772 in 2020 to an estimated 912,013 in 2024,” said Tantri. “These systems now handle far more than transactions. They integrate loyalty SURJUDPPHV SHUVRQDOLVHG R̆ HUV DQG FXV tomer insights.” Government initiatives to encourage cashless transactions have fuelled adop tion, while AI-enhanced “super wallets” add features like voice commands and spending analysis. Interestingly, SMBs are adopting these technologies faster than enterprises: 82% are piloting or deploying digital wallets compared to 25% RI ODUJHU ¿UPV “This high adoption rate is largely due to reduced costs,” Tantri explained. “Many solutions require no additional hardware, making them more accessible to smaller businesses.” Reaching micro-entrepreneurs Accessibility remains a concern, particu larly for Malaysia’s vast informal sector: Night market traders, food stalls and home-based bakers. “Smart POS and AI-powered tools are becoming increasingly accessible. Flex ibility in settlement banks, personalised service and 24/7 support help micro entrepreneurs adopt digital solutions,” said Tantri. But technology alone is not enough. “Bridging the digital gap is about trans forming the payment experience into part of the consumer journey. POS systems are no longer just transaction points – they’re places of service that generate valuable insights,” he explained. These insights allow micro-entrepre QHXUV WR UH¿QH SULFLQJ PDQDJH LQYHQWRU\ and compete with larger players. He illustrated how AI can enhance such systems. “A restaurant’s POS might recommend appetisers based on past purchases, while a night market stall could suggest drink specials depending on the weather. These features help small businesses operate PRUH Ḣ FLHQWO\ ´ Digital identity has become central to payment security. With rising fraud threats, businesses are embracing bio metrics and tokenisation.

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