If you grew up using shillings or small notes in exchange for some finger food back in the book-carrying days, you would understand the pinch of not having any cash inside your wallet because that would also mean skipping a meal or maybe owing someone else money. Does that ring any bell in your head? How about recalling the insecurity that you felt before when your wallet runs low on notes? To be fair, it does feel like you were hanging by a thread back in those days before digital payment was introduced.
Fast forward to 2018, Malaysia is progressively making its way to becoming a cashless society. Today, it makes more sense to leave the house with an empty wallet but you could still come home full-handed (depends on what you purchase, of course). So, how much are you familiar with going cashless?
Why cashless payment?
Going cashless also means getting rid of physical money and choosing to perform a fund transaction online instead. There is a saying that goes “you’ll miss it when it’s gone”, but this practice could mean for the better. Money is one of the key surviving tools in this world and it is hard to find someone who fails to see its value. Having abundant cash brings you more than just emotional security but it also comes with a taste of the harsh reality.
Money attracts people and troubles, as well. The more cash you have, the higher risk you expose yourself to threats. This is especially true when Malaysia is known for its unpredictable events. In fact, a recent survey shows that Malaysians are becoming increasingly comfortable to go cashless. Many believed that they could last a few days without having any cash on them.
New opportunities arise for Malaysians
It is almost impossible to ignore the groundwork Malaysia has laid to encourage the acceptance of digital transactions. Since then, the outlook has been optimistic as Bank Negara Malaysia (BNM) shares an increasing number of Malaysians adopting cashless payment methods for the first quarter of 2018. Be it one way or another, cashless initiatives put the government and people at advantage. Besides making easier tracking and collection for tax, fraud activities become harder to pursue as digital footprints are present for every transaction made.
While we should not forget the value that cash has brought into our lives, it is also important to recognise the milestones that digital transactions have achieved. Gone were the tedious shopping trips, as the convenience brought by online payment, mobile wallets, debit cards or credit cards have sent goods to our doorsteps instead. Shopping from the comfort of home has never been more ideal. Besides, discounts offered to buyers when they make payment online also further encouraged consumers to go digital.
Embrace the future of payment
Of course, getting Malaysians to adopt cashless payment methods as a permanent solution in their lives definitely takes time to run its course. The first step to embrace the future of payment starts from educating people with the right information. Relevant parties play a vital role in ensuring that people’s confidence is built over time as Malaysia gradually implements electronic payment system into different sectors of business. As a matter of fact, 80% of transactions in the country are still driven by cash while the remaining 20% are done by online banking or credit card.
However, it is not surprising to witness this occurrence in the country as many business operators are still relying on physical money payments. This still poses as a challenge for Malaysians to independently rely on cashless payment as it would be quite rare to pay without cash in hawker centers, night markets or even mamak stalls.
Nevertheless, Malaysia can be seen working its way up to digitising its economy as many digital players in the market are launching various digital services to improvise consumers’ lifestyles. The time has never been more right for Malaysia to accept digital payment platforms like e-wallet as its emergence has the potential to transform traditional payment process through the transaction of e-money. This new mode of payment will change consumer’s perspective towards cash as e-money will now facilitate the payment process. The convenience allows users to scan a Quick Response (QR) code provided at payment counters via the provider’s mobile application.
It will be just a matter of time before the acceptance of cashless payment becomes viral as youth holds the greatest purchasing power and they are are among the majority to adopt technology in their lives. This is why as a payment gateway provider at iPay88, we see the importance of educating consumers from early with the right payment solutions as this could increase their confidence to make payments online frequently.
To find out more about iPay88 and our services, talk to us today and find out how you can make a difference to your business.