05/04/2026

ON SUNDAY April 5, 2026 X theSunday Special

Building trust in a digital economy As digital payments expand, regulators are stepping up to ensure safety, transparency and fair practices. The central bank is working with the Ministry of Finance and the Securities Commission Malaysia to establish a new regulatory framework through the Consumer Credit Bill to regulate non-bank BNPL providers. This move is expected to bring greater accountability to the rapidly growing BNPL sector, protecting both consumers and merchants. For businesses, staying compliant is now a core part of digital operations. “Every business – big or small – has compliance and security top of mind. Merchants should adopt risk assess ment practices, embed compliance into their digital operations and ensure data governance and transparency,” Anderson emphasised. “Keep meticulous transaction records and stay informed about new regulations through channels like Bank Negara Ma OD\VLD¶V 5HJXODWRU\ 6DQGER[ ´ VKH DGYLVHG Few things frustrate online shoppers more than a slow or complicated checkout. 5HVHDUFK E\ %D\PDUG ,QVWLWXWH IRXQG WKDW 17% of cart abandonments globally are due to a “too long or complicated checkout process.” Anderson encourages businesses to use integrated POS systems, barcode scanners and customised interfaces to improve speed and accuracy in physical stores. For online checkouts, she emphasised R̆ HULQJ SRSXODU ORFDO SD\PHQW PHWKRGV and guest checkout options, alongside mobile-friendly interfaces. “Understanding and selecting ap plicable security options as part of the ÀRZ LV DOZD\V UHFRPPHQGHG ,W¶V DERXW balancing speed, convenience and safety,” she added. For many small and medium enter prises (SMEs), digital transformation still feels like a steep climb. High infra structure costs and complex banking requirements have traditionally limited access to modern payment tools. The scale of smartphones and digital wallets has widened the scope of pay PHQW DFFHSWDQFH $V 0DOD\VLD¶V ¿QWHFK sector matures, new technologies like AI, tokenisation and blockchain are reshaping how transactions are made and secured. “The Malaysian market is incredibly dynamic and well primed as an early adopter of emerging technologies. We’ve VHHQ WKLV ¿UVW KDQG ZLWK WKH 'LJLWDO $V set Innovation Hub and the work on a wholesale central-bank digital currency,” Anderson observed. While blockchain is likely to play a

bigger role in back-end and institutional payments, AI and tokenisation are already mainstream in retail. AI and machine OHDUQLQJ DUH FRPPRQO\ XVHG IRU LQ ÀLJKW fraud detection, while tokenisation re places sensitive payment data with tokens for greater security. Looking ahead, she believes these tech nologies will expand further as “agentic commerce” – AI-driven systems that autonomously discover, negotiate and complete purchases – gains traction. Innovation doesn’t happen in isola tion. Anderson believes that Malaysia’s payment ecosystem thrives best through FROODERUDWLRQ DPRQJ EDQNV ¿QWHFKV DQG regulators. Cashless, connected Malaysia So what will Malaysia’s payments land VFDSH ORRN OLNH ¿YH \HDUV IURP QRZ" “There’s a lot of discussion about the rise of agentic commerce, with AI agents acting on behalf of users to discover, negotiate and complete purchases autono mously. Authorisation, authentication and accountability will become increas ingly important and it’s exciting to see the industry already seeking solutions,” Anderson said. Key trends to accelerate: • Malaysia’s e-commerce payments will become fully digital and mobile-driven , integrated seam lessly across platforms. • E-wallets, instant bank transfers (DuitNow and FPX) and BNPL will dominate online transactions. • Traditional card usage will de cline , replaced by tokenised creden tials for embedded payments. • Real-time payments (RTPs) will gain traction, enabling instant transactions for both consumers and merchants. From tap-and-go payments in Klang 9DOOH\ FDIpV WR 45 FRGHV LQ UXUDO PDUNHWV Malaysia’s rapid embrace of cashless systems signals more than convenience ± LW¶V D UHÀHFWLRQ RI DQ HFRQRP\ DGDSWLQJ to global digital currents. With a young, tech-savvy population, strong regulatory oversight and innova tive players driving merchant readiness, Malaysia is well on its way to becoming one of Southeast Asia’s most advanced digital payment hubs. For consumers, it means faster, safer DQG PRUH ÀH[LEOH WUDQVDFWLRQV )RU EXVL nesses, it means new ways to grow and compete. For the nation, it means a future where money moves as freely – and as instantly – as a swipe on a screen.

The shift towards digital wallets From QR payments at hawker stalls to AI-driven commerce, Malaysia is rapidly moving towards a fully digital payments landscape

A S Malaysia marches deeper into the digital age, the way its citizens pay, shop and move money is transforming faster than ever. From bustling hawker stalls that now ÀDVK 45 FRGHV WR RQOLQH PDUNHWSODFHV offering Buy Now Pay Later (BNPL) options at checkout, digital payments have woven themselves into the fabric of Malaysian life. “E-Wallets and alternative payment methods are increasingly established as the mainstay for many Malaysians – par ticularly among younger demographics,” Lucy Anderson, vice president at Global Payments, explained. “Cards will remain important for cer tain use cases such as big-ticket items, international transactions, rewards programmes and for people who have built up credit.” Bank Negara Malaysia’s 2023 report revealed that e-Wallet transactions sur passed 7.5 billion that year, marking a 37% increase from 2022. Platforms like Touch ‘n Go, GrabPay and ShopeePay are now household names, accepted everywhere from mamak restaurants to luxury boutiques. M DOD\VLD¶V ³PRELOH ¿UVW´ FXOWXUH LV DOVR fuelling this growth. “Over 80% of online consumers access e-commerce via smartphones, with mobile devices generating 65% of e-commerce volume. Mobile shopping is shaping the way Malaysians pay, with high integration across social media, influencer links,

BY DAYANA SOBRI

livestreams and marketplaces like Lazada and Shopee,” Anderson shared. This seamless ecosystem, where brows ing, discovery and payment happen within D VLQJOH WDS LV UHGH¿QLQJ KRZ FRQVXPHUV engage with brands. For younger Malaysians, especially, e-Wallets are not just convenient; they’re a lifestyle. Buy Now Pay Later (BNPL) services have emerged as a powerful tool for both consumers and retailers. Market data shows that BNPL adoption in Malaysia is projected to grow 15.1% annually by 2025, reaching an estimated USD 2.52 billion. Anderson said this surge reflects a JURZLQJ DSSHWLWH IRU ¿QDQFLDO ÀH[LELOLW\ “ %13/ LPSURYHV FDVK ÀRZ E\ DOORZLQJ consumers to spread payments over time, while providing an accessible way to access credit. It also boosts retail growth, particularly for SMEs with higher-ticket items.” She noted that while BNPL may not replace other payment methods entirely, it will become a mainstream option within VSHFL¿F FRQWH[WV “As platforms like Atome, Grab and Shopee embed BNPL into their checkout ÀRZV FRQVXPHUV ZLOO FRQVLGHU LW PRUH often, especially for discretionary pur chases.” This trend has been particularly ben H¿FLDO IRU 60(V ZKLFK PDNH XS RI Malaysian businesses according to SME &RUS %\ R̆ HULQJ ÀH[LEOH SD\PHQW RS tions, smaller merchants can reach more customers and drive repeat purchases.

E-wallets are widely used for everyday purchases.