Malaysia’s credit and charge card payment market is expected to grow 6.8 percent to reach MYR245.7 billion in 2025. This growth will be driven by the rising consumer spending and increasing consumer preference for cashless transactions.
GlobalData’s Payment Cards Analytics revealed that Malaysia's credit and charge card payment value increased 7.9 percent in 2024, driven by the rise in consumer spending. The value is forecast to register a compound annual growth rate (CAGR) of 5.5 percent between 2025 and 2029, reaching MYR304.3 billion in 2029.
“Credit and charge cards were the most preferred payment cards in Malaysia, accounting for 59.7 percent of total card payment value in 2024,” said Kartik Challa, Senior Banking and Payments Analyst at GlobalData.
“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. The frequency of payments per card stood at 82.8 times in 2024, much higher compared to 37.7 times for debit cards. This figure is anticipated to rise to 107.1 by 2029.
“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 percent Easy Pay,’ allowing customers to pay for monthly interest-free installments of up to 36 months at more than 1,000 participating merchants.”
Growing POS terminalisation 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). However, there is significant room for further expansion of POS infrastructure.
Rising e-commerce payments also contribute to growth in credit and charge card usage. According to GlobalData’s E-Commerce Analytics, credit and charge cards are among the most preferred payment methods for online payments, with a 17.1 percent share in 2024.
Moreover, banks in Malaysia offer debt consolidation options 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 manage their debt and avoid default by offering lower interest rates and extended repayment terms.
“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.”
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