PAYNET: "20 YEARS FOR MALAYSIA TO BECOME CASHLESS SOCIETY"

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 statistics provided by Bank Negara Malaysia (BNM), RM 833 million of transactions has been made via internet banking from January to November in 2018, RM 741,9 million in year 2017, and RM 588.2 million in year 2016.

The statistics indicating the use of mobile banking increased in first 11 months of 2018 which involving 1.92 billion of transactions, 1.05 billion in year 2017, and 526.6 million in year 2016 whereas the cash withdrawal from automatic teller machine has dropped to 718.3 mil in year 2018 from the previous 763.9 million in year 2017 and 761.2 million in 2016.

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