Why has Big Tech payment growth surged 170% in Malaysia?

Question

Accepted Answer

Big Tech Payment Growth in Malaysia Surged by 170 Per Cent Since Pandemic Onset

The adoption of payment processes by major technology companies (Big Tech) in Malaysia has experienced a significant surge of approximately 170 per cent since the onset of the pandemic. This substantial growth can be attributed to a confluence of factors, including the inherent simplicity of these payment methods, their widespread demand across various consumer needs, and a reduction in consumer hesitancy or trust barriers.
Easing Entry Through Developmental Policies

Government and central bank policies have played a crucial role in facilitating the increased presence of Big Tech payment solutions within the Malaysian market. These developmental initiatives have focused on fostering interoperability through the establishment of common national infrastructure, thereby creating a more integrated digital payment ecosystem. Furthermore, an open entry policy for new participants in the payment sector has allowed Big Tech entities to more readily establish and expand their payment services.
Comparison with Overall E-payment Growth

While the 170 per cent expansion of Big Tech payments is notable, it is important to contextualise this within the broader e-payment landscape in Malaysia. The overall growth in e-payments during the same period was approximately 20 per cent. Despite the rapid rise of Big Tech payment methods, their contribution to the total value of e-payments remains relatively small, accounting for less than 0.2 per cent of the overall transaction value.
Dominance of Online Banking and Limited Disruption

Online banking continues to be the primary method for digital value transfers in Malaysia, underscoring its established position. Beyond payment services, the disruptive impact of Big Tech on other financial services within Malaysia is currently limited. Factors such as the high level of financial inclusion and the presence of robust, competitive incumbent financial institutions have helped to mitigate the potential for widespread disruption by Big Tech players in these other areas.

Reading history

Hide →

This history is cleared when the page is closed.

Why has Big Tech payment growth surged 170% in Malaysia?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends