Adyen Index: Malaysia tops in global mobile wallet adoption

Malaysians are at the forefront of adopting mobile wallets, with 63% using them for transactions. This is according to the Adyen Index 2024, based on a survey spanning 26 markets with over 38,000 shoppers and 13,000 merchants.

41% of consumers prefer tap-to-pay
Malaysian shoppers are inclined towards quick and convenient ways of paying, fueling the demand for streamlined in-store experiences such as kiosks and one-click checkouts.

“As retail evolves, technology and personalisation are key. Our findings show Malaysians lead in mobile wallet usage globally, highlighting a shift to digital payments and social commerce. To retain customer loyalty and maintain competitiveness, businesses must be nimble in catering to these changing consumption preferences,” said Soon Yean Lee, Country Manager, Malaysia, Adyen.

Adyen’s research further showed that Millennials were more likely to shop on social media platforms than any other age group, with 80% saying they’d done so in the last 12 months. There is growth across all age demographics using these platforms to shop. Gen Z consumers clocked the greatest growth; of all of the Gen Z consumers that have shopped on social media, 17% of them are first-time buyers.

Fraud: An Enduring Problem for Malaysian Companies
With the rise of mobile wallets and social commerce, fraud has increased significantly. In 2023, 95% of Malaysian businesses faced attempts of cyber-attacks or data breaches, ranking the country second globally after Canada. Additionally, 65% of businesses reported that fraudulent transactions and chargebacks have heavily impacted their operations and profitability, higher than the global average of 51%.

A chargeback occurs when a payment is reversed after a customer disputes a charge. This process can threaten revenue, especially with the rise of friendly fraud. To combat this, 69% of Malaysian businesses are considering working with their payment providers to secure chargeback liability guarantees.

"Online shopping is built on trust and consistency. By creating a secure environment with strong customer authentication and chargeback management, retailers enable consumers to shop confidently. This also minimizes chargeback risks, leading to increased revenue and more efficient operations," said Lee.

Enhancing Shopping Experiences
To improve shopping experiences and boost consumer engagement, businesses are investing in technology. Unified commerce solutions are pivotal for cost optimisation and operational efficiency, resulting in a 16% higher growth rate for retailers using this technology. A single platform helps streamline processes, automate tasks, and reduce manual errors. Consolidating multiple systems into one platform also lowers maintenance, upgrade, and development costs, improving ROI.

51% of consumers are willing to share data for discounts and loyalty incentives, compared to 48% globally. This underscores the importance of personalised experiences and incentives in fostering consumer engagement and loyalty.

The Adyen Index highlights Malaysia's quick shift to digital payments and social commerce. Despite the growth potential, businesses must prioritise security measures to counter the rising threat of fraud.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.

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