Source: GlobalData
Malaysia credit and charge card payments market to grow by 6.8% in 2025, forecasts GlobalData
Posted in Banking
Malaysia’s credit and charge card payments market is expected to register a growth of 6.8% to reach MYR245.7 billion ($53.7 billion) in 2025. This growth will be driven by the rising consumer spending and increasing consumer preference for cashless transactions, reveals GlobalData, a leading data and analytics company.
GlobalData’s Payment Cards Analytics reveals that credit and charge card payment value in Malaysia registered a growth of 7.9% in 2024, driven by the rise in consumer spending. The value is forecast to register a compound annual growth rate (CAGR) of 5.5% between 2025 and 2029 to reach MYR304.3 billion ($66.5 billion) in 2029.
Kartik Challa, Senior Banking and Payments Analyst at GlobalData, comments: “Credit and charge cards were the most preferred payment cards in Malaysia, accounting for 59.7% of total card payment value in 2024. This was mainly driven by the rewards, discounts, cashback, and interest-free installment facilities offered with these cards, as well as developing payment infrastructure and a growing e-commerce market.”
Malaysians are increasingly using credit and charge cards for payments, with the frequency of payments per card standing at 82.8 times in 2024, much higher compared to 37.7 times for debit cards. This figure is anticipated to further rise to 107.1 by 2029.
Challa adds: “This is driven by banks offering flexible repayment options and value-added benefits such as cashback, reward points, discounts, and installment facilities. CIMB Malaysia offers ‘0% Easy Pay,’ allowing customers to pay for purchases in monthly interest free installment of up to 36 months at more than 1,000 participating merchants.”
Growing POS terminalization has been another key driver for the rise of credit and charge cards in Malaysia. The number of POS terminals per million inhabitants in Malaysia stood at 27,693 in 2024, which is higher compared to its peers such as Thailand (13,507), Indonesia (8,142), India (6,964) and Vietnam (5,988), though there is significant room for further expansion of POS infrastructure.
Rising e-commerce payments are also contributing to the growth in credit and charge card usage. According to GlobalData’s E-Commerce Analytics, credit and charge cards are one of the most preferred payment methods for online payments, with 17.1% share in 2024.
Moreover, banks in Malaysia offer debt consolidation option to credit card holders, which will further help boost usage. For instance, UOB offers the UOB Bank Transfer program, which allows customers to consolidate their outstanding credit card balances from other banks. The program is designed to help credit card holders to manage their debt and avoid default by offering lower interest rate and extended repayment terms.
Challa concludes: “The Malaysian credit and charge card market is poised for sustained growth over the next five years, driven by the economic recovery, growing consumer preference for electronic payments, a rising middle-class and young working population, and growth in e-commerce payments. However, challenges such as global trade war between major countries, and geopolitical uncertainty remain obstacles to the market.”
*GlobalData’s 2024 Financial Services Consumer Survey was carried out in Q2 2024. Approximately 67,292 respondents aged 18+ were surveyed across 41 countries.