The Malaysian payment cards instrument registered positive growth during the review period (2009–2013), recording a compound annual growth rate (CAGR) of 7.09% to reach 50.5 million cards in circulation by the end of 2013. In terms of transaction value, payment cards valued MYR402.9 billion (US$128.2 billion) in 2013, after registering a review-period CAGR of 6.87%. Robust economic performance, improved banking infrastructure, new product developments and growing acceptance of card-based payments at POS terminals and on public transport were key factors driving growth. The adoption of Europay, MasterCard and Visa (EMV) standards, and the emergence of contactless technology also supported the growth.
The average transaction value (ATV) in Malaysia in 2013 was US$141.1, lower than China and Thailand, which recorded ATVs of US$299.1 and US$152.6 respectively, but higher than Australia and India, which recorded ATVs of US$104.9 and US$59.2 respectively. Of these five countries, Australia recorded the highest frequency with 100.3 transactions per card, while Malaysia’s was relatively low at 18.7. China recorded had the highest level of penetration of 3.0 cards per individual among the peer countries, followed by Australia with 2.9, Malaysia with 1.7, Thailand with 0.9, and India with 0.3.
The growing use of Touch ‘n Go (TNG) payments on public transit systems have driven the growth of prepaid cards. TNG is a prepaid e-cash card launched in 1997, and was one of the first to offer contactless card transactions in the country. TNG accounted for 98.8% of all e-money (prepaid cards) transactions in Malaysia, in terms of transaction volume, in 2011, and the system is capable of processing over 3 million transactions per day. It is around three times faster than cash for transit or toll payments. Initially developed as a toll card, TNG has expanded its application into areas such as public transport, parking, theme parks and some retail outlets. The card can be reloaded at multiple locations such as customer service centers on highways, some petrol stations, TNG ‘hubs’, and bank automated teller machines (ATMs) and cash deposit machines (CDMs).
The report provides top-level market analysis, information and insights into Malaysia’s cards and payments industry, including:
- Current and forecast values for each category of Malaysia’s cards and payments industry, including debit cards, credit cards, charge cards and prepaid cards
- Comprehensive analysis of the industry’s market attractiveness and future growth areas
- Analysis of various market drivers and regulations governing Malaysia’s cards and payments industry
- Detailed analysis of the marketing strategies adopted for selling debit, credit, charge and prepaid cards used by banks and other institutions in the market
- Comprehensive analysis of consumer attitudes and buying preferences for cards
- The competitive landscape of Malaysia’s cards and payments industry
- This report provides a comprehensive analysis of Malaysia’s cards and payments industry.
- It provides current values for Malaysia’s cards and payments industry for 2013, and forecast figures for 2018.
- It details the different economic, infrastructural and business drivers affecting Malaysia’s cards and payments industry.
- It outlines the current regulatory framework in the industry.
- It details the marketing strategies used by various banks and other institutions.
- It profiles the major banks in Malaysia’s cards and payments industry.
Reasons to Buy
- Make strategic business decisions using top-level historic and forecast market data related to – Malaysia’s cards and payments industry and each market within it.
- Understand the key market trends and growth opportunities in Malaysia’s cards and payments industry.
- Assess the competitive dynamics in Malaysia’s cards and payments industry.
- Gain insights in to the marketing strategies used for selling various card types in Malaysia.
- Gain insights into key regulations governing Malaysia’s cards and payments industry.
In March 2011, BNM introduced new regulations on eligibility requirements for credit cards, restricting their issue to those with an annual income of at least MYR24,000 (US$7,625). Those earning MYR36,000 (US$11,437) or less may only hold credit cards from a maximum of two issuers. BNM also restricted credit limits, which should not be more than twice the monthly income per issuer. The regulations aimed to encourage responsible lending by issuers, and resulted in no increase in the number of credit cards in circulation at 8.3 million from 2011 to 2013. However, overall credit card transaction value rose from MYR88.8 billion (US$29.0 billion) in 2011 to MYR100.1 billion (US$31.9 billion) in 2013.
The Malaysian payment cards instrument grew from 38.4 million cards in circulation in 2009 to 50.5 million in 2013, at a CAGR of 7.09%. It is anticipated to grow at a forecast-period CAGR of 3.34%. Malaysia has one of highest card penetrations in Asia–Pacific, with nearly five cards per individual. Although ATM transactions were the major contributor, transaction values at POS terminals has been gradually increasing, representing rising consumer preference for cashless transactions, a trend also prevailing in other markets in the region.
Spanning over 106 pages, 72 Tables and 46 Figures “Malaysia’s Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape” report covering Key Facts and Top Events, Executive Summary, Payment Instruments, Market Attractiveness and Future Prospects of Cards and Payments, Analysis of Cards and Payments Industry Drivers, Emerging Consumer Attitudes and Trends, Payment Cards, Debit Cards, Credit Cards, Charge Cards, Commercial Cards, Card Technology, Regulations in the Cards and Payments Industry, Card Fraud Statistics, Card Issuers, Card Schemes, Prepaid Cards, Merchant Acquiring and Processing, Appendix. This report Covered 10 Companies – Maybank, Citibank Bhd, CIMB Bank, RHB Bank, Hong Leong Bank, MasterCard, American Express, Visa, Diners Club, Bankcard (e-Debit).
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