A significant shift towards cashless transactions has taken place in Malaysia, as 63% of the population now utilize mobile wallets for their daily financial needs, positioning the country as a global leader in digital wallet adoption. This finding is based on the Adyen Index 2024, a retail report released by global financial technology platform Adyen.
The report further highlights that 41% of Malaysian consumers are embracing mobile-enabled solutions like tap-to-pay, while 36% respondents indicated they no longer carry physical wallets. This growing preference for digital payment methods has driven demand for streamlined in-store experiences, such as kiosks and one-click checkouts.
In response to this evolving consumer behavior, businesses are adopting innovative strategies to enhance customer loyalty. Notably, 73% of retailers are leveraging social commerce and personalization tactics. This emphasis on social media aligns with the report's finding that 73% of Malaysians utilize social media for shopping, surpassing the global average of 44%.
Social media platforms have emerged as a prominent shopping channel, particularly among Millennials and Gen Z. Millennials dominate this trend, with 80% reporting they have made social media purchases in the past year. Gen Z, on the other hand, exhibits the fastest growth, with 17% of Gen Z social media shoppers being first-time buyers in the last 12 months.
To further enhance the shopping experience and attract customers, businesses are investing in technology and loyalty programs. 21% of retailers are investing in financial technology, while 51% of consumers are willing to share data in exchange for discounts from retailers.
The Adyen Index 2024 is based on a survey of over 38,000 shoppers and 13,000 merchants across 26 markets, including over 1,000 consumers and 500 businesses in Malaysia. The survey was conducted between January 15 and February 1 of this year.
