According to GlobalData, the Malaysian e-commerce market is anticipated to surge by 12.8 percent in 2024, driven by the ongoing shift of consumer preferences from offline to online shopping.
“Malaysia is among the fastest-growing e-commerce markets in Southeast Asia, supported by the rising internet and smartphone penetration, availability of secure online payment systems, and increasing number of online shoppers,” said Poornima Chinta, Senior Banking and Payments Analyst at GlobalData.
“Furthermore, online shopping festivals such as Black Friday, Cyber Monday, and Single’s Day have also contributed to the overall growth of e-commerce in Malaysia.”
Alternative payment methods are the most preferred payment tools for e-commerce payments, with alternative payment solutions accounting for a combined market share of 35.7 percent in 2023.
Grab Pay and ShopeePay are the most popular alternative payment methods due to their simplicity, speed, and convenience. Global brands such as PayPal and Apple Pay are also available.
The growth of alternative payments has also been driven by the rising popularity of buy now, pay later (BNPL) solutions. Some prominent BNPL brands in Malaysia are SPayLater, PAYLATER, and Atome.
TikTok Shop partnered with Atome in July 2023 to further drive sales and enable customers to pay for instalments by selecting Atome at the payment checkout.
Payment cards and bank transfers follow alternative payments. In 2023, cards accounted for a 24.9 percent share of e-commerce transaction value, and credit cards are preferred over debit cards due to their value-added benefits.
“With the rise in consumer preference for online shopping, improved payment infrastructure, and proliferation of payment tools, the future of e-commerce in Malaysia looks promising,” said Chinta.
“The e-commerce market is anticipated to increase at a compound annual growth rate (CAGR) of 11.7 percent between 2024 and 2028 to reach MYR78.4 billion ($17.2 billion) in 2028.”
