Malaysia’s total card payments market is projected to grow at a compound annual growth rate (CAGR) of 7.1% between 2025 and 2029 to reach MYR538 billion ($125.7 billion) in 2029. This is mainly driven by expanding POS terminal infrastructure, growing adoption of contactless payments, rise of digital banks, and government-led financial inclusion programs, according to GlobalData, a leading intelligence and productivity platform.
GlobalData’s Payment Cards Analytics reveals that the total card payments value in Malaysia increased from MYR225.5 billion ($52.7 billion) in 2021 to MYR408.5 billion ($95.4 billion) in 2025. This expansion was underpinned by government’s push for electronic payments—particularly the development of POS infrastructure and policy measures such as interchange fee caps—alongside a rising banked adult population and the availability of low-cost basic banking services.
Koppisetty Pujitha, Senior Banking and Payments Analyst at GlobalData, comments: “Malaysia’s card payments growth is being shaped by a combination of infrastructure build-out and policy support aimed at shifting everyday transactions away from cash. Alongside the expansion in POS terminals, measures such as capped interchange fees and cash transaction limits are improving acceptance economics for merchants and accelerating the long-term transition to electronic payments, even as cash use remains significant in parts of the economy.”
Debit card payments represented 41% of the total card payment market in Malaysia in 2025. Debit cards’ growth is supported by Bank Negara Malaysia (BNM)’s financial inclusion initiatives such as a new policy on Basic Banking Services, which requires all financial service providers to offer low-cost basic savings and current accounts that come with free debit cards. The new policy will be effective from 1April 2026.
Credit and charge cards accounted for 59% of the total card payment transaction value in 2025. Banks are driving the uptake of credit and charge cards via rewards, cashback and instalment features.
Meanwhile, the government’s recent rollout of digital-bank licenses is intensifying competition in Malaysia’s banking sector and accelerating both account and credit card adoption. As of September 2025, the five licensed digital banks had collectively onboarded roughly 1.97 million customers and held deposits totalling MYR 3.1 billion ($724.2 million). Regulatory measures are further reinforcing card adoption.
The rising uptake of contactless payments is also fuelling the growth of card-based transactions nationwide. In June 2025, TNB Electron, in partnership with CIMB Bank, Visa, and JuiceUP—a provider of electric vehicle (EV) charging solutions in Malaysia—launched contactless payment terminals at key rest-and-service EV charging stations along major highways. This innovation enables EV owners to pay for their charging services using contactless debit or credit cards or use digital wallets such as Apple Pay, Google Pay, or Samsung Pay, with no dedicated EV apps required.
Pujitha concludes: “Malaysia’s total card payments market is expected to see continued growth over the next five years. This momentum will be driven by expanding acceptance networks, rise of contactless payments, growing competitiveness from digital banking, and strong financial inclusion initiatives.”
Notes
Quotes provided by Koppisetty Pujitha, Senior Banking and Payments Analyst at GlobalData
Information is based on GlobalData’s Payment Cards Analytics
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