Malaysia Achieves Second Highest Rank in QR Code Payments Globally

Malaysia has become the second highest country in QR code payment adoption at 61.5%, following China. The success is attributed to the integration of platforms like DuitNow QR, which simplifies transactions for consumers and businesses alike. Despite the advancement towards digital payments, it is important to balance the needs of all demographics, including those who still rely on cash.

In recent years, Malaysia has witnessed a significant surge in digital payments, achieving remarkable success in QR code payment adoption. Currently, Malaysia ranks second worldwide, with a notable adoption rate of 61.5%, trailing only China, which leads at 67.4%. Such progress places Malaysia ahead of several traditional digital payment strongholds, including the United Kingdom, the United States, and parts of Europe.

The rise in QR code usage can be attributed to its widespread availability, found in various settings—from upscale boutiques to local food stalls. The integration of QR codes has been facilitated by a combination of convenience, robust fintech innovations, and government support. The introduction of platforms like DuitNow QR has simplified the process for businesses to incorporate QR payments seamlessly into their operations.

DuitNow has emerged as a pivotal solution, harmonizing different payment providers under a unified system. By consolidating multiple QR codes into one, DuitNow effectively alleviates complexities previously faced by businesses and consumers, enhancing user experience and encouraging broader adoption. This standardization has significantly contributed to Malaysia’s impressive QR code uptake.

The appeal of QR codes lies in their simplicity; they eliminate the need for costly terminals and complex software. Vendors can effortlessly display a QR code for customers to scan, verify, and finalize their transactions. Additionally, the ongoing initiatives from banks, e-wallet providers, and the government have further catalyzed the shift toward cashless transactions, particularly following the increased demand for touchless payments during the COVID-19 pandemic.

Since its inception in 2019, DuitNow QR has expanded dramatically. The number of merchants registered has soared to two million, surpassing the number of traditional point-of-sale terminals in Malaysia, while the transaction volume has immensely grown, reaching 360 million transactions valued at RM 14.6 billion. Small businesses represent a substantial portion of this growth, comprising 80% of DuitNow QR merchants.

Despite these encouraging trends, caution is advised as Malaysia navigates its path toward increased digitization. While a cashless society offers numerous benefits, it is vital to recognize the importance of balancing cash and digital payments, particularly for rural communities and older populations who may prefer traditional methods. It is paramount to ensure that the transition does not alienate individuals who are not wholly prepared for a cashless environment.

In conclusion, Malaysia’s impressive ranking as the second highest in QR code payments globally highlights the country’s rapid adoption of digital payment solutions. The success is a result of strategic innovations, governmental encouragement, and the effective implementation of platforms like DuitNow QR. However, as Malaysia embraces this digital transformation, it is essential to maintain a balance that includes all demographics, ensuring everyone benefits from advancements in payment technology.

Original Source: fintechnews.my