PETALING JAYA: Businesses, both big and small, have agreed that cashless payments are a welcome part of the future.
However, they also believe that cash will remain important as some customers will still choose to pay this way.
The Malaysia Retail Chain Association (MRCA) said consumers now very much preferred to use e-wallets and cards to pay.
“But looking ahead, the MRCA believes that cash will still be relevant, although it will be reduced as Malaysia moves towards becoming more digitalised.
“Cash is still important, as not everyone is equipped or comfortable with cashless payments.
“That said, it is expected that the younger generations will prefer cashless transactions over cash,” it said.
The MRCA was asked to comment on the rise in the usage of electronic money (e-money) and the prospect of Malaysia being a cashless society in the future.
Based on data from Bank Negara Malaysia, e-money has the biggest volume of transactions compared with other electronic payment tools like credit, debit and charge cards.
The MRCA said the Covid-19 pandemic has shifted consumer behaviour, leading many to go cashless.
“Such electronic payments save time and reduce the handling of cold hard cash,” it said.
At present, most of the MRCA’s 580 members, especially in urban areas, have adopted e-wallet payments.
“Even tourists expect retailers to provide e-wallet payment options,” it added.
Federation of Hawkers and Traders Associations of Malaysia president Datuk Seri Rosli Sulaiman said most of its 23,000 members have enabled customers to pay through e-wallets or by scanning QR codes to transfer payments directly.
“It’s simply a safer and more secure way to pay,” he said, adding that there were 14 associations under the federation.
Rosli said the federation aimed to train all small traders and hawkers to use e-money, as it was also convenient for them to track bills and daily transactions.
“Sometimes, hawkers don’t even keep receipts,” he said, adding that going electronic also meant financial statements can be generated easily for documentation to be presented to the government.
Rosli said it was common for hawkers to misplace physical cash while operating their stalls and using e-money helped reduce this problem.
“There’s also an issue with hygiene, as physical cash can harbour bacteria. These days, especially after Covid-19, both customers and hawkers prefer not to touch banknotes,” he said.
In the future, Rosli said going cashless could be beneficial for all, including both customers and hawkers.
“Some developed countries have already achieved this, and so should we if we don’t want to be left behind,” he said.
