A must-see for investors: analysis of the Malaysian payments industry

Malaysian payments industry analysis: a must-read guide for investors

I. Industry overview: a fast-growing digital economy engine

1. market size

   • Malaysia's e-payment transaction volume to exceed in 2023RM38 billionThe annual growth rate is 24% (BNM data).
   • Cashless payment penetration expected to reach 202550%(Visa report), cash dependency continues to decline.

2. policy-driven

   • National Fintech Blueprint (2022-2026): Promote cross-border payment interconnection (e.g. QR code interoperability with Indonesia and Thailand).
   • Digital banking licences issued: Boost, Grab and 5 other organisations licensed to reshape inclusive financial services.

II. Core Tracks and Competitive Landscape

3. The Case for Transforming Traditional Banks:
   • Maybank's MAE Wallet enhances user stickiness by integrating investment functions (gold ETF subscription).

Investment Highlights and Risk Warning

✅ opportunity point:

• QRPh standardised QR code system covers 90% merchants nationwide with mature infrastructure.
• Surging demand for Islamic fintech compliance programmes (61.3% Muslim group of the population).

⚠️ Risk Warning.

• International giants such as Grab and Ant Group are squeezing the profit margins of local small and medium-sized players.
• BNM's proposed Buy Now Pay Later Regulatory Framework may drive up compliance costs.

IV. Tracking of cutting-edge trends

1. CBDC Pilot Progress: Project Dunbar Multi-National Digital Currency Bridge Enters Second Phase of Testing.
2. Web3 Payments: Luno Exchange Supports Direct Fiat Purchase of Cryptocurrencies, Average Daily Volume Breaks RM200 Million.

📊 Investor Action Recommendation.

• Short-term focus on government subsidy scenario service providers (e.g. digitised tenders for agricultural subsidy distribution).
• Long-term layout of cross-border B2B payment infrastructure projects.

To obtain the full version of the report and the financial model template of the subject company, you may contact the professional consultant team for customised analysis. (Note: This article does not constitute investment advice)

In-depth analysis of the Malaysian payments industry (continued): emerging opportunities and strategic placement

V. Segmented market growth dynamics dismantled

1. Social e-commerce drives e-wallet explosion

   • TikTok Shop Malaysia GMV growth of $3,00% by 2023, driving a surge in inbuilt payment usage.
   • PrestoMall, a local platform, has increased its payment conversion rate by 45% through its "cashback for code scanning" strategy.

2. The golden track for cross-border payments

   • China-Malaysia bilateral trade reaches $110bn (2023), spawning:
     • Alipay+ has access to 100,000 local merchants such as 7-Eleven;
     • WeChat Pay MY supports direct Ringgit-RMB settlement.

3. BNPL's fine-tuned operations
   | flat-roofed building | differentiation strategy | level of bad debt control |
   |————|—————————|————-|
   | Atome | Luxury instalment (in collaboration with Sephora) | <2% |
   | Split | Education Staging (Language Programme Scenarios) | <1.5% |

VI. Policy dividends and regulatory developments

✅ Key policy window 2024:

• Digital Banking Officially Launched: Boost Bank plans to launch a Muslim compliant savings product in Q3.
• FinTech Sandbox 2.0:: BNM Open API Standards Pilot Project focusing on.
  🔹 Embedded insurance (e.g. GrabPay trip delay insurance automatically triggered)
  🔹 Carbon credit payments (Pilot company: Sunway Group).

⚠️ Compliance Minefield Alert:

• Amendments to the Anti-Money Laundering Act require face recognition verification for e-wallets exceeding RM3000 in a single transaction.

VII. Technological disruptive variables

1. AI risk controlCase in point:
   • BigPay uses machine learning models to increase fraudulent transaction block rates to 981 TP3T (compared to only 821 TP3T for traditional rules engines).
2. blockchain applicationBREAKOUT.
   • Sarawak state government pilots automated settlement of gas tariffs on the chain to save 30% reconciliation costs.

📌 INVESTOR MEMO: Tech M&A Target Recommendation - Local AI startup [Staple] provides real-time cash flow forecasting tools for small and medium-sized merchants.

VIII. Regional benchmarking insights

💡Replicable model suggestion: learn from GoTo's GoPay's "motorbike rider agent network" ground promotion strategy.

[Guidance for further action]

1️⃣ resource-based investor:: Participation in the digital banking ecosystem (e.g. logistics company Lalamove can cut into the driver payroll system).
2️⃣ technology-based investor: Bet on API aggregation platforms (refer to Razer Merchant Services success story).

Need a list of specific subject DDs or guidance on the sandbox application process? Feel free to submit your needs to our professional team to get the full version of the "Investment Handbook for the Malaysian Payments Circuit". (Data updated to 2024Q2)