CASHLESS ERA

The impact of over-reliance on digital payments is critical towards a country. The light of cyber security threats and geopolitical concerns among citizens will put the country at risk. A cashless society like Sweden is facing a potential risk. A sudden down of digital infrastructure will make the country to be in a chaos situation. Thus, government plays a vital role to make sure the digital payment systems is smooth functioning and is highly secured for citizen to use within the country. OpenGov Asia has reported in early December 2018 that Malaysia's e-commerce landscape is expected to grow exponentially. A roadmap is being pursued by National E-Commerce Council (NeCC) to ensure doubling growth rate of e-commerce and achieving RM 211 billion of GDP contribution by 2020. E-payment systems will be expanded and allow tracing which reported later in December 2018. Malaysian government will focus on government transactions that is "For good governance and reducing cor...

It requires 20 years for Malaysia to become a cashless society, says PayNet.  The spending habits of Malaysians are slowing the process of making the country becoming a cashless society as most of the Malaysians are still preferring cash transactions rather than digital payment systems.  CEO Peter Schiesser from Payments Network  Malaysia Sdn Bhd (Pay Net) Group mentioned on a media briefing about Malaysia's payment ecosystem that it is costly for a country to print cash or for retailers to handle cash in the digital era. Besides, cashless society may be unavailable in rural area. They heavily reliant on cash, thus lowering the degree of financial literacy.  To increase people's awareness of using cashless payment systems, country should play a role on educating them. Thanks to the booming of e-commerce market in Malaysia as there is a sharp increase in the past 2 years on the number of electronic payment transactions.  According to the stati...

Malaysia is fast becoming a cashless society, with 70% of the consumers preferring merchants that accept digital payments compared to those that only accept cash. According to the Visa Consumer Payment Attitudes Study 2018, there is a growing preference for digital payments among Malaysian consumers as seen in a similar trend based on their Visa Net data, an advanced global processing network that provides secure and reliable payments around the world. Even based on the diagram above, the internet banking in ruling the way of payment made by the consumers. More than half of the respondents said going cashless offers greater payment security, in addition to being able to track their spending better.  

What is cashless all about? Characterized by the exchange of funds by cheques, debit or credit card or electronic method rather than the use of cash. What is cashless society?  describes an economic state whereby financial transactions are not conducted with money in the form of physical banknotes or coins, but rather through the transfer of digital information (usually an electronic representation of money) between the transacting parties. Example: 1.        Pay tools with e-toll 2.        Pay for public transportation with e-money 3.        Pay parking tickets with e-wallet 4.        Shop with debit or credit cards 5.        Online shopping with cashless payment Below are the pros and cons of cashless payment systems: