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Synopsis
The report provides top-level market analysis, information and insights into Malaysia's cards and payments industry, including:
- Current and forecast values for each category of Malaysia's cards and payments industry, including debit cards, credit cards, charge cards and prepaid cards
- Comprehensive analysis of the industry’s market attractiveness and future growth areas
- Analysis of various market drivers and regulations governing Malaysia's cards and payments industry
- Detailed analysis of the marketing strategies adopted for selling debit, credit, charge and prepaid cards used by banks and other institutions in the market
- Comprehensive analysis of consumer attitudes and buying preferences for cards
- The competitive landscape of Malaysia's cards and payments industry

Summary
The Malaysian payment cards instrument registered positive growth during the review period (2009–2013), recording a compound annual growth rate (CAGR) of 7.09% to reach 50.5 million cards in circulation by the end of 2013. In terms of transaction value, payment cards valued MYR402.9 billion (US$128.2 billion) in 2013, after registering a review-period CAGR of 6.87%. Robust economic performance, improved banking infrastructure, new product developments and growing acceptance of card-based payments at POS terminals and on public transport were key factors driving growth. The adoption of Europay, MasterCard and Visa (EMV) standards, and the emergence of contactless technology also supported the growth.
The average transaction value (ATV) in Malaysia in 2013 was US$141.1, lower than China and Thailand, which recorded ATVs of US$299.1 and US$152.6 respectively, but higher than Australia and India, which recorded ATVs of US$104.9 and US$59.2 respectively. Of these five countries, Australia recorded the highest frequency with 100.3 transactions per card, while Malaysia’s was relatively low at 18.7. China recorded had the highest level of penetration of 3.0 cards per individual among the peer countries, followed by Australia with 2.9, Malaysia with 1.7, Thailand with 0.9, and India with 0.3.
The growing use of Touch ‘n Go (TNG) payments on public transit systems have driven the growth of prepaid cards. TNG is a prepaid e-cash card launched in 1997, and was one of the first to offer contactless card transactions in the country. TNG accounted for 98.8% of all e-money (prepaid cards) transactions in Malaysia, in terms of transaction volume, in 2011, and the system is capable of processing over 3 million transactions per day. It is around three times faster than cash for transit or toll payments. Initially developed as a toll card, TNG has expanded its application into areas such as public transport, parking, theme parks and some retail outlets. The card can be reloaded at multiple locations such as customer service centers on highways, some petrol stations, TNG ‘hubs’, and bank automated teller machines (ATMs) and cash deposit machines (CDMs).

Scope
- This report provides a comprehensive analysis of Malaysia's cards and payments industry.
- It provides current values for Malaysia's cards and payments industry for 2013, and forecast figures for 2018.
- It details the different economic, infrastructural and business drivers affecting Malaysia's cards and payments industry.
- It outlines the current regulatory framework in the industry.
- It details the marketing strategies used by various banks and other institutions.
- It profiles the major banks in Malaysia's cards and payments industry.

Reasons To Buy
- Make strategic business decisions using top-level historic and forecast market data related to Malaysia's cards and payments industry and each market within it.
- Understand the key market trends and growth opportunities in Malaysia's cards and payments industry.
- Assess the competitive dynamics in Malaysia's cards and payments industry.
- Gain insights in to the marketing strategies used for selling various card types in Malaysia.
- Gain insights into key regulations governing Malaysia's cards and payments industry.

Key Highlights
- The Malaysian payment cards instrument registered positive growth during the review period (2009–2013), recording a compound annual growth rate (CAGR) of 7.09% to reach 50.5 million cards in circulation by the end of 2013. In terms of transaction value, payment cards valued MYR402.9 billion (US$128.2 billion) in 2013, after registering a review-period CAGR of 6.87%. Robust economic performance, improved banking infrastructure, new product developments and growing acceptance of card-based payments at POS terminals and on public transport were key factors driving growth. The adoption of Europay, MasterCard and Visa (EMV) standards, and the emergence of contactless technology also supported the growth.
- The average transaction value (ATV) in Malaysia in 2013 was US$141.1, lower than China and Thailand, which recorded ATVs of US$299.1 and US$152.6 respectively, but higher than Australia and India, which recorded ATVs of US$104.9 and US$59.2 respectively. Of these five countries, Australia recorded the highest frequency with 100.3 transactions per card, while Malaysia’s was relatively low at 18.7. China recorded had the highest level of penetration of 3.0 cards per individual among the peer countries, followed by Australia with 2.9, Malaysia with 1.7, Thailand with 0.9, and India with 0.3.
- The growing use of Touch ‘n Go (TNG) payments on public transit systems have driven the growth of prepaid cards. TNG is a prepaid e-cash card launched in 1997, and was one of the first to offer contactless card transactions in the country. TNG accounted for 98.8% of all e-money (prepaid cards) transactions in Malaysia, in terms of transaction volume, in 2011, and the system is capable of processing over 3 million transactions per day. It is around three times faster than cash for transit or toll payments. Initially developed as a toll card, TNG has expanded its application into areas such as public transport, parking, theme parks and some retail outlets. The card can be reloaded at multiple locations such as customer service centers on highways, some petrol stations, TNG ‘hubs’, and bank automated teller machines (ATMs) and cash deposit machines (CDMs).
- In March 2011, BNM introduced new regulations on eligibility requirements for credit cards, restricting their issue to those with an annual income of at least MYR24,000 (US$7,625). Those earning MYR36,000 (US$11,437) or less may only hold credit cards from a maximum of two issuers. BNM also restricted credit limits, which should not be more than twice the monthly income per issuer. The regulations aimed to encourage responsible lending by issuers, and resulted in no increase in the number of credit cards in circulation at 8.3 million from 2011 to 2013. However, overall credit card transaction value rose from MYR88.8 billion (US$29.0 billion) in 2011 to MYR100.1 billion (US$31.9 billion) in 2013.
- The Malaysian payment cards instrument grew from 38.4 million cards in circulation in 2009 to 50.5 million in 2013, at a CAGR of 7.09%. It is anticipated to grow at a forecast-period CAGR of 3.34%. Malaysia has one of highest card penetrations in Asia–Pacific, with nearly five cards per individual. Although ATM transactions were the major contributor, transaction values at POS terminals has been gradually increasing, representing rising consumer preference for cashless transactions, a trend also prevailing in other markets in the region.

Table Of Contents

Malaysia%s Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape
Table of Contents
1 Key Facts and Top Events
2 Executive Summary
3 Payment Instruments
3.1 Current Payments Environment
3.2 Alternative Payment Instruments
3.2.1 M-payments
3.2.2 PayPal
3.2.3 MOLPoints
3.2.4 Mobile Money
3.2.5 Celcom AirCash
3.2.6 M-money
4 Market Attractiveness and Future Prospects of Cards and Payments
5 Analysis of Cards and Payments Industry Drivers
5.1 Demographic Drivers
5.1.1 Total population, and proportion of the population aged over 65 years
5.1.2 Urban and rural populations
5.1.3 Changing consumer lifestyles
5.1.4 Migration and immigration
5.1.5 Internet and mobile penetration
5.2 Economic Drivers
5.2.1 Nominal GDP Value and real GDP growth rate
5.2.2 Inflation and unemployment rate
5.2.3 Nominal GDP per capita
5.2.4 Base rate
5.3 Infrastructure Drivers
5.3.1 Number of point-of-sale (POS) terminals and penetration
5.3.2 Number of automated teller machines (ATMs) and penetration
5.3.3 Banking branches
5.4 Business Drivers
5.4.1 Retail sales value
5.4.2 E-commerce
5.4.3 Online and mobile banking
5.4.4 Consumer lending
6 Emerging Consumer Attitudes and Trends
6.1 Market Segmentation and Targeting
6.1.1 Consumer cards
6.1.2 Corporate cards
6.2 New Product Launches
6.3 Travel Spending
6.3.1 Outbound trips volume and spending
6.3.2 Inbound trips volume and spending
7 Payment Cards
7.1 Payment Cards Instrument Analysis
7.1.1 Number of cards in circulation by card type
7.1.2 Transaction volume by card type
7.1.3 Transaction value by card type
7.1.4 Personal vs commercial cards
8 Debit Cards
8.1 Debit Cards Market Analysis
8.1.1 Number of debit cards in circulation
8.1.2 Debit cards transaction volume by channel
8.1.3 Debit cards transaction value by channel
8.1.4 Number of debit cards in circulation by scheme
8.1.5 Debit cards transaction value by scheme
8.1.6 Debit cards issuers market shares
8.1.7 Debit cards comparison
8.1.8 Strategies
9 Credit Cards
9.1 Credit Cards Market Analysis
9.1.1 Number of credit cards in circulation
9.1.2 Credit cards transaction volume by channel
9.1.3 Credit cards transaction value by channel
9.1.4 Number of credit cards in circulation by scheme
9.1.5 Credit cards transaction value by scheme
9.1.6 Credit cards issuers market share
9.1.7 Credit cards comparison
9.1.8 Strategies
10 Charge Cards
10.1 Charge Cards Market Analysis
10.1.1 Number of charge cards in circulation
10.1.2 Charge cards transaction volume by channel
10.1.3 Charge cards transaction value by channel
10.1.4 Number of charge cards in circulation by scheme
10.1.5 Charge cards transaction value by scheme
10.1.6 Charge cards comparison
10.1.7 Strategies
11 Commercial Cards
11.1 Commercial Cards Market Analysis
11.1.1 Number of commercial cards in circulation
11.1.2 Commercial cards transaction value
11.1.3 Commercial credit cards
11.1.4 Commercial charge cards
11.1.5 Commercial cards comparison
12 Card Technology
12.1 EMV
12.2 Contactless
13 Regulations in the Cards and Payments Industry
13.1 Regulatory Framework
13.1.1 Revised eligibility requirements for credit cards issuance
13.1.2 New regulations to enhance credit cards security
13.1.3 Legal and regulatory framework
13.2 Anti-Money Laundering (AML)
13.3 Foreign Direct Investment (FDI) Regulations
14 Card Fraud Statistics
14.1 Card Fraud Analysis
15 Card Issuers
15.1 Maybank
15.2 Citibank Bhd
15.3 CIMB Bank (Commerce International Merchant Bankers Bhd)
15.4 RHB Bank (Rashid Hussain Bank)
15.5 Hong Leong Bank
16 Card Schemes
16.1 Bankcard (e-Debit)
16.2 MasterCard
16.3 Visa
16.4 American Express
17 Prepaid Cards
17.1 Prepaid Cards Market Analysis
17.1.1 Number of prepaid cards in circulation
17.1.2 Prepaid cards transaction value
17.1.3 Open-loop prepaid cards
17.1.4 Closed-loop prepaid cards
17.1.5 Prepaid cards comparison
17.1.6 Strategies
18 Merchant Acquiring and Processing
19 Appendix
19.1 Tables
19.2 Methodology
19.3 Contact Timetric
19.4 About Timetric
19.5 Timetric's Services
19.6 Definitions
19.7 Disclaimer

List of Tables
Table 1: Malaysia - Key Facts, 2013
Table 2: Regional Benchmarking of Malaysian Payment Cards Instrument, 2013
Table 3: Malaysian Migration and Immigration Statistics
Table 4: Malaysia - Changes in Overnight Policy Rate (%), 2009-2013
Table 5: Malaysia - Number of Banking Branches, 2009-2013
Table 6: Malaysia - Internet and Mobile Banking, 2009-2013
Table 7: Specialized Cards for Frequent Flyers
Table 8: Specialized Cards for Premium Customers
Table 9: Specialized Cards for Vehicle Owners
Table 10: Specialized Cards for Young People and Children
Table 11: Specialized Cards for Female Population
Table 12: Specialized Cards for Business Managers and Entrepreneurs
Table 13: Specialized Cards for SMEs
Table 14: Malaysia - New Product Launches
Table 15: Regional Benchmarking of Malaysian Debit Cards, 2013
Table 16: Malaysia - Debit Cards Comparison
Table 17: Regional Benchmarking of Malaysian Credit Cards, 2013
Table 18: Malaysia - Credit Cards Comparison, 2014
Table 19: Regional Benchmarking of Malaysian Charge Cards, 2013
Table 20: Malaysia - Charge Cards Comparison, 2014
Table 21: Malaysia - Commercial Cards Comparison
Table 22: Malaysia - Market Entry Strategies of Foreign Banks
Table 23: Regional Benchmarking of Malaysian Prepaid Cards, 2013
Table 24: Malaysia - Prepaid Cards Comparison
Table 25: Malaysia - Registered Merchant Acquiring Services Providers
Table 26: Malaysia - Payment Instruments Transaction Value (MYR Billion), 2009-2013
Table 27: Malaysia - Payment Instruments Transaction Value (US$ Billion), 2009-2013
Table 28: Malaysia - Payment Instruments Transaction Volume (Million), 2009-2013
Table 29: Malaysia - Number of Cards in Circulation by Card Type (Thousand), 2009-2018
Table 30: Malaysia - Transaction Volume by Card Type (Million), 2009-2018
Table 31: Malaysia -Transaction Value by Card Type (MYR Billion), 2009-2018
Table 32: Malaysia - Transaction Value by Card Type (US$ Billion), 2009-2018
Table 33: Malaysia - Number of Debit Cards in Circulation (Million), 2009-2018
Table 34: Malaysia - Debit Cards Transaction Volume and Frequency by Channel, 2009-2018
Table 35: Malaysia - Debit Cards Total and Average Transaction Value by Channel, 2009-2018
Table 36: Malaysia - Debit Cards Total and Average Transaction Value by Channel, 2009-2018
Table 37: Malaysia - Number of Debit Cards in Circulation By Scheme (Million), 2009-2013
Table 38: Malaysia - Debit Cards Transaction Value By Scheme (MYR Billion), 2009-2013
Table 39: Malaysia - Debit Cards Transaction Value By Scheme (US$ Billion), 2009-2013
Table 40: Malaysia - Debit Cards Transaction Value By Issuer (MYR Million), 2009-2013
Table 41: Malaysia - Debit Cards Transaction Value By Issuer (US$ Million), 2009-2013
Table 42: Malaysia - Number of Credit Cards in Circulation (Million), 2009-2018
Table 43: Malaysia - Credit Cards Transaction Volume and Frequency by Channel, 2009-2018
Table 44: Malaysia - Credit Cards Total and Average Transaction Value by Channel, 2009-2018
Table 45: Malaysia - Credit Cards Total and Average Transaction Value by Channel, 2009-2018
Table 46: Malaysia - Number of Credit Cards in Circulation By Scheme (Thousand), 2009-2013
Table 47: Malaysia - Credit Cards Transaction Value By Scheme (MYR Million), 2009-2013
Table 48: Malaysia - Credit Cards Transaction Value By Scheme (US$ Million), 2009-2013
Table 49: Malaysia - Credit Cards Transaction Value By Issuer (MYR Million), 2009-2013
Table 50: Malaysia - Credit Cards Transaction Value By Issuer (US$ Million), 2009-2013
Table 51: Malaysia - Credit Cards Balance Outstanding By Issuer (MYR Million), 2009-2013
Table 52: Malaysia - Credit Cards Balance Outstanding By Issuer (US$ Million), 2009-2013
Table 53: Malaysia - Number of Charge Cards in Circulation (Thousand), 2009-2018
Table 54: Malaysia - Charge Cards Transaction Volume and Frequency by Channel, 2009-2018
Table 55: Malaysia - Charge Cards Total and Average Transaction Value by Channel, 2009-2018
Table 56: Malaysia - Charge Cards Total and Average Transaction Value by Channel, 2009-2018
Table 57: Malaysia - Number of Charge Cards in Circulation By Scheme (Thousand), 2009-2013
Table 58: Malaysia - Charge Cards Transaction Value By Scheme (MYR Million), 2009-2013
Table 59: Malaysia - Charge Cards Transaction Value By Scheme (US$ Million), 2009-2013
Table 60: Malaysia - Number of Commercial Cards in Circulation (Thousand), 2009-2018
Table 61: Malaysia - Commercial Cards Transaction Value (MYR Billion), 2009-2018
Table 62: Malaysia - Commercial Cards Transaction Value (US$ Billion), 2009-2018
Table 63: Malaysia - Commercial Credit Cards, 2009-2018
Table 64: Malaysia - Commercial Charge Cards, 2009-2018
Table 65: Malaysia - Card Fraud (MYR Million), 2009-2013
Table 66: Malaysia - Card Fraud (US$ Million), 2009-2013
Table 67: Malaysia - Number of Prepaid Cards in Circulation (Million), 2009-2018
Table 68: Malaysia - Prepaid Cards Transaction Value (MYR Billion), 2009-2018
Table 69: Malaysia - Prepaid Cards Transaction Value (US$ Billion), 2009-2018
Table 70: Malaysia - Open-Loop Prepaid Cards, 2009-2018
Table 71: Malaysia - Closed-Loop Prepaid cards, 2009-2018
Table 72: Key Definitions

List of Figures
Figure 1: Malaysia - Payment Instrument Shares by Transaction Value (%), 2009 and 2013
Figure 2: Malaysia - Payment Instrument Shares by Transaction Volume (%), 2009 and 2013
Figure 3: Malaysia - Payment Cards Transaction Value and Growth, 2009-2018
Figure 4: Malaysia - Total Population (Million) and Proportion Aged Over 65 years, 2009-2018
Figure 5: Malaysia - Urban and Rural Populations (%), 2009-2018
Figure 6: Malaysia - Real Household Consumption (US$ Billion), 2009-2018
Figure 7: Malaysia - Internet and Mobile Penetration (Users per 100 Inhabitants), 2009-2018
Figure 8: Malaysia - Nominal GDP (US$ Billion) and Real GDP Growth Rate (%), 2009-2018
Figure 9: Malaysia - Inflation and Unemployment Rates (%), 2009-2018
Figure 10: Malaysia - Nominal GDP per Capita (US$ Thousand), 2009-2018
Figure 11: Malaysia - Number of POS Terminals and Penetration, 2009-2018
Figure 12: Malaysia - Number of ATMs and Penetration, 2009-2018
Figure 13: Malaysia - Retail Sales Value (MYR Billion), 2009-2018
Figure 14: Malaysia - E-commerce Value (MYR Billion), 2009-2018
Figure 15: Malaysia - Consumer Lending Shares (%), 2009-2013
Figure 16: Malaysia - Cards and Payments Industry Segmentation by Card Type
Figure 17: Malaysia - Outbound Trips Volume and Spending, 2009-2018
Figure 18: Malaysia - Inbound Trips Volume and Spending, 2009-2018
Figure 19: Malaysia - Card Shares In Terms of Numbers in Circulation (%), 2009-2018
Figure 20: Malaysia - Card Shares in Terms of Transaction Volume (%), 2009-2018
Figure 21: Malaysia - Card Shares in Terms of Transaction Value (%), 2009-2018
Figure 22: Malaysia - Personal and Commercial Cards, Transaction Value (MYR Billion), 2009-2018
Figure 23: Malaysia - Number of Debit Cards in Circulation (Million), 2009-2018
Figure 24: Malaysia - Debit Cards Transaction Volume by Channel (Million), 2009-2018
Figure 25: Malaysia - Debit Cards Transaction Value by Channel (MYR Billion), 2009-2018
Figure 26: Malaysia - Debit Cards Scheme Shares in Terms of Number of Cards in Circulation (%), 2013
Figure 27: Malaysia - Debit Cards Scheme Market Share in Terms of Transaction Value (%), 2013
Figure 28: Malaysia - Debit Cards Issuers Market Shares in Terms of Transaction Value (%), 2013
Figure 29: Malaysia - Number of Credit Cards in Circulation (Million), 2009-2018
Figure 30: Malaysia - Credit Cards Transaction Volume by Channel (Million), 2009-2018
Figure 31: Malaysia - Credit Cards Transaction Value by Channel (MYR Billion), 2009-2018
Figure 32: Malaysia - Credit Cards Scheme Market Share in Terms of Number of Cards in Circulation (%), 2013
Figure 33: Malaysia - Credit Cards Scheme Market Share in Terms of Transaction Value (%), 2013
Figure 34: Malaysia - Credit Cards Issuers Market Share in Terms of Transaction Value (%), 2013
Figure 35: Malaysia - Credit Cards Issuers Market Share in Terms of Outstanding Balance (%), 2013
Figure 36: Malaysia - Number of Charge Cards in Circulation (Thousand), 2009-2018
Figure 37: Malaysia - Charge Cards Transaction Volume by Channel (Thousand), 2009-2018
Figure 38: Malaysia - Charge Cards Transaction Value by Channel (MYR Million), 2009-2018
Figure 39: Malaysia - Charge Cards Scheme Market Share in Terms of Number of Cards in Circulation (%), 2013
Figure 40: Malaysia - Charge Cards Scheme Market Share in Terms of Transaction Value (%), 2013
Figure 41: Malaysia - Number of Commercial Cards in Circulation (Thousand), 2009-2018
Figure 42: Malaysia - Commercial Cards Transaction Value (MYR Billion), 2009-2018
Figure 43: Malaysia - Number of EMV Cards (Million), 2009-2013
Figure 44: Malaysia - Shares of Various Types of Card Fraud in Terms of Transaction Value (%), 2009 and 2013
Figure 45: Malaysia - Number of Prepaid Cards in Circulation (Million), 2009-2018
Figure 46: Malaysia - Prepaid Cards Transaction Value (Million), 2009-2018

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