The Malaysian payment cards
instrument registered positive growth during the review period (2009–2013),
recording a compound annual growth rate (CAGR) of 7.09% to reach 50.5 million
cards in circulation by the end of 2013. In terms of transaction value, payment
cards valued MYR402.9 billion (US$128.2 billion) in 2013, after registering a
review-period CAGR of 6.87%. Robust economic performance, improved banking
infrastructure, new product developments and growing acceptance of card-based
payments at POS terminals and on public transport were key factors driving
growth. The adoption of Europay, MasterCard and Visa (EMV) standards, and the
emergence of contactless technology also supported the growth.
The average transaction value
(ATV) in Malaysia in 2013 was US$141.1, lower than China and Thailand, which
recorded ATVs of US$299.1 and US$152.6 respectively, but higher than Australia
and India, which recorded ATVs of US$104.9 and US$59.2 respectively. Of these
five countries, Australia recorded the highest frequency with 100.3
transactions per card, while Malaysia’s was relatively low at 18.7. China
recorded had the highest level of penetration of 3.0 cards per individual among
the peer countries, followed by Australia with 2.9, Malaysia with 1.7, Thailand
with 0.9, and India with 0.3.
The growing use of Touch ‘n Go
(TNG) payments on public transit systems have driven the growth of prepaid
cards. TNG is a prepaid e-cash card launched in 1997, and was one of the first
to offer contactless card transactions in the country. TNG accounted for 98.8%
of all e-money (prepaid cards) transactions in Malaysia, in terms of
transaction volume, in 2011, and the system is capable of processing over 3
million transactions per day. It is around three times faster than cash for
transit or toll payments. Initially developed as a toll card, TNG has expanded
its application into areas such as public transport, parking, theme parks and
some retail outlets. The card can be reloaded at multiple locations such as
customer service centers on highways, some petrol stations, TNG ‘hubs’, and
bank automated teller machines (ATMs) and cash deposit machines (CDMs).
The report provides top-level
market analysis, information and insights into Malaysia's cards and payments
industry, including:
- Current and forecast values for
each category of Malaysia's cards and payments industry, including debit cards,
credit cards, charge cards and prepaid cards
- Comprehensive analysis of the
industry’s market attractiveness and future growth areas
- Analysis of various market
drivers and regulations governing Malaysia's cards and payments industry
- Detailed analysis of the
marketing strategies adopted for selling debit, credit, charge and prepaid
cards used by banks and other institutions in the market
- Comprehensive analysis of
consumer attitudes and buying preferences for cards
- The competitive landscape of
Malaysia's cards and payments industry
Scope
- This report provides a
comprehensive analysis of Malaysia's cards and payments industry.
- It provides current values for
Malaysia's cards and payments industry for 2013, and forecast figures for 2018.
- It details the different
economic, infrastructural and business drivers affecting Malaysia's cards and
payments industry.
- It outlines the current
regulatory framework in the industry.
- It details the marketing
strategies used by various banks and other institutions.
- It profiles the major banks in
Malaysia's cards and payments industry.
Reasons to Buy
- Make strategic business
decisions using top-level historic and forecast market data related to -
Malaysia's cards and payments industry and each market within it.
- Understand the key market trends
and growth opportunities in Malaysia's cards and payments industry.
- Assess the competitive dynamics
in Malaysia's cards and payments industry.
- Gain insights in to the
marketing strategies used for selling various card types in Malaysia.
- Gain insights into key
regulations governing Malaysia's cards and payments industry.
In March 2011, BNM introduced new
regulations on eligibility requirements for credit cards, restricting their
issue to those with an annual income of at least MYR24,000 (US$7,625). Those
earning MYR36,000 (US$11,437) or less may only hold credit cards from a maximum
of two issuers. BNM also restricted credit limits, which should not be more
than twice the monthly income per issuer. The regulations aimed to encourage
responsible lending by issuers, and resulted in no increase in the number of
credit cards in circulation at 8.3 million from 2011 to 2013. However, overall
credit card transaction value rose from MYR88.8 billion (US$29.0 billion) in
2011 to MYR100.1 billion (US$31.9 billion) in 2013.
The Malaysian payment cards
instrument grew from 38.4 million cards in circulation in 2009 to 50.5 million
in 2013, at a CAGR of 7.09%. It is anticipated to grow at a forecast-period
CAGR of 3.34%. Malaysia has one of highest card penetrations in Asia–Pacific,
with nearly five cards per individual. Although ATM transactions were the major
contributor, transaction values at POS terminals has been gradually increasing,
representing rising consumer preference for cashless transactions, a trend also
prevailing in other markets in the region.
Spanning over 106 pages, 72 Tables and 46
Figures “Malaysia's Cards and Payments
Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products
and Competitive Landscape” report covering Key Facts and Top Events,
Executive Summary, Payment Instruments, Market Attractiveness and Future Prospects
of Cards and Payments, Analysis of Cards and Payments Industry Drivers,
Emerging Consumer Attitudes and Trends, Payment Cards, Debit Cards, Credit
Cards, Charge Cards, Commercial Cards, Card Technology, Regulations in the
Cards and Payments Industry, Card Fraud Statistics, Card Issuers, Card Schemes,
Prepaid Cards, Merchant Acquiring and Processing, Appendix. This report Covered
10 Companies - Maybank, Citibank Bhd, CIMB Bank, RHB Bank, Hong Leong Bank,
MasterCard, American Express, Visa, Diners Club, Bankcard (e-Debit).
