Despite Malaysian consumers’ high adoption of alternative payments (111 e-payment transactions per capita in 2017 and forecasted to escalate up to 200 in 2020), the VMware Banking Consumer 2020 Study found that 46% of consumers are still skeptical towards e-wallets and payment applications, questioning their security. This figure rises to 53% when speaking of smart devices with payment capabilities. The study reveals a strong preference for traditional payment methods with 70% of consumers favoring online interbank transfers, ATMs or cash – in contrast to neighboring Indonesia, Thailand and The Philippines.
Part of the problem is that Malaysian consumers are lacking good cyber hygiene habits: 82% of respondents store their bank account details on one to six applications and only 25% use different passwords for all their accounts triggering fraud cases and loss for banks. However the cashless adoption rate in Malaysia is rising.
Ultimately, banks and financial services institutions need to boost the network infrastructure and protect their apps, data and users across numerous cloud environments. Forward-thinking banks have already started to introduce biometric payments with 71% of consumers trusting in its security alongside with cash payments.