20/04/2026

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MONDAY | APR 20, 2026

/thesuntelegram FOLLOW / Malaysian Paper

ON TELEGRAM m RAM

COMMENT by Tee Kean Kang

Powering seamless cashless payments I N 2026, digital payments will no longer be optional for Malaysian businesses; they are a consumer driven necessity reshaping how payment systems to operate smoothly and consistently, as even minor inefficiencies can quickly ripple through daily operations, affecting liquidity, customer satisfaction and overall business continuity. usage has dramatically increased convenience, with millions of cross border transactions recorded in the first half of 2025 alone, driven by regional linkages and Asean

commerce operates. What began as a convenience has evolved into a critical operational foundation. As consumers become accustomed to cashless transactions, businesses face a new reality: payment systems must be reliable, transparent and seamless – especially as they contend with tighter margins and elevated expectations. For business owners, payments have moved beyond convenience and are now firmly embedded in their daily operations. When settlements are delayed, confirmations lack clarity or systems fail during peak periods, the consequences are immediate constrained cash flow, disrupted workflows and weakened confidence in going fully cashless. As Malaysia’s digital economy enters a more mature phase, the strength and reliability of payment infrastructure will determine which businesses thrive and which struggle to keep pace. Scale of digital economy Malaysia’s digital economy continues to demonstrate strong momentum. Digital payments, especially e-wallets and QR-based transactions, have become integrated into everyday life, with a significant majority of consumers adopting mobile-first payment methods. Research indicates that a significant share of Malaysian consumers are using QR codes and mobile wallets, reflecting a strong appetite for payment innovation. This widespread adoption is translating into scale. Digital commerce and services are estimated to contribute nearly US$40 billion (RM157 billion) this year while digital payment transactions exceed US$200 billion in value. At this scale, payments are no longer a background function. Businesses depend on

initiatives. While this scale has improved convenience, it has also increased exposure to fraud and operational errors. Many businesses operate on tight margins, meaning that even a small payment discrepancy or fraud incident can result in significant loss. Trust in payment systems will be established through design rather than branding, with clear payment confirmation, safer transaction flows and reduced opportunities for error becoming basic expectations rather than optional features. Infrastructure control Beyond simplicity, businesses are demanding visibility and authority over how money actually moves. They are scrutinising fees, processing paths and settlement timelines more closely than ever. Payment systems built on multiple intermediaries are often obscure on where funds sit and when they are cleared. Simpler structures with direct and clearly defined links to core payment infrastructure can restore transparency and predictability in how funds move and settle. This clarity will enable businesses to plan with confidence and hold payment providers accountable. In 2026, control over payment infrastructure will be just as critical as the ability to accept payments quickly because speed without visibility will no longer meet the needs of modern businesses. Borderless commerce Cross-border payments are no longer limited to large enterprises or specialised exporters as tourism, regional travel and online platforms continue to bring international customers to local businesses.

In 2026, several clear trends are expected to shape how businesses assess and select payment gateways. Liquidity certainty In the early stages of digital adoption, a payment was deemed successful once a transaction was completed. That is no longer sufficient. What matters now is how quickly funds are available and whether settlement timelines are predictable. Cash flow affects everything from inventory planning to meeting payroll obligations, and uncertainty around payouts can make it difficult to plan with confidence. As Malaysia’s financial system moves towards round-the-clock settlement capabilities, expectations around payout speed and visibility will continue to rise. Businesses will favour payment partners that deliver funds clearly, consistently and without unnecessary delay. Operational simplicity The proliferation of multiple payment methods has introduced complexity for many businesses – from managing multiple devices to reconciling disparate reporting tools. While additional methods once helped capture customer preferences, they now often create inefficiency that can strain staff and divert attention from customers and core operations. Today, businesses seek unified payment systems that seamlessly integrate acceptance, confirmation and reporting, thus reducing daily workload and operational risks. In a mature digital economy, complexity is less a sign of innovation and more an operational cost. Built-in trust Malaysia’s widespread QR payment

Digital payments, especially e-wallets and QR-based transactions, have become deeply integrated into everyday life, with a significant majority of consumers adopting mobile-first payment methods. – BERNAMAPIC

help SMEs overcome traditional credit barriers, ensuring they have the working capital to thrive. Strategic imperatives For business owners, payment decisions can no longer be revisited only when something breaks – they are strategic decisions that influence cash flow reliability, operational stability and competitive positioning. In a digital economy where transactions are constant and margins are tight, unreliable or complex payment systems can create real costs. Payments are moving beyond transactions and into the core enablers of business operations. The systems that matter will be those built on strong foundations, designed for simplicity and trusted to work consistently. TeeKean Kang is the CEO of Paydibs, a registered payment service provider. Comments: letters@thesundaily.com

In the first half of 2025 alone, cross-border QR transactions exceeded 11 million, a trend expected to accelerate with Visit Malaysia 2026. Businesses are expected to accept international wallets and payment methods as easily as the local ones, without added setup burdens or complex reconciliation. Beyond payments True “beyond payments” growth in 2026 will not be driven by adding more payment methods but by how transaction data unlocks access to capital. Payments are evolving into a gateway for embedded finance, where a business’s real sales history enables fairer, faster financing, such as merchant cash advances or dynamic credit lines. This shift will transform payments from a transactional tool to a growth enabler, turning real-time business activity into a financial identity. By integrating payments with responsible lending, platforms can

Education retains its importance in the Malaysian landscape for parents, students and stakeholders. The changes are fast paced with new developments in new fields of study such as cybersecurity, data protection, augmented and virtual reality, machine learning in education, digital education and artificial Intelligence. Leading the way are universities, who are invited to showcase their latest programmes, curriculum and content in our Education Focus for 2026.

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