29 Jan 2020
Posted in Banking
E-commerce payments in Malaysia to cross US$11bn in 2023, says GlobalData
The e-commerce market in Malaysia is among the fastest-growing in Southeast Asia, with a total transaction value of MYR25.6bn (US$6.2bn) in 2019. It is expected to grow at a compound annual growth rate (CAGR) of 15.9% to reach MYR46.3bn (US$11.2bn) in 2023, says GlobalData, a leading data and analytics company.
GlobalData’s latest report, ‘Malaysia Cards & Payments: Opportunities and Risks to 2023’, states that rising Internet and smartphone penetration, growing middle class population and increasing tech-savvy millennials, coupled with government initiatives, propelled the e-commerce market value to grow more than three times between 2015 and 2019.
Sowmya Kulkarni, Banking and Payments Senior Analyst at GlobalData, comments: “In addition to the increasing number of online shopping population, the government is also supporting the country’s e-commerce market with initiatives under its National eCommerce Strategic Roadmap (NESR).”
As part of the NESR, the government is putting concerted efforts to increase the awareness among consumers and businesses, especially small and medium-sized enterprises (SMEs). The government launched Digital Free Trade Zone in March 2017 with an aim to position Malaysia as one of the regional e-commerce hubs.
According to GlobalData’s 2019 Banking and Payments Survey, alternative payments are the most preferred mode of e-commerce purchases in Malaysia, accounting for 38.2% in 2019, closely followed by payment cards with 38%.
Sowmya concludes: “With consumers gradually shifting from cash to electronic payments in Malaysia, the rise in online shopping will provide payment companies a significant growth opportunity in Malaysia.”