This is the highest adoption rate globally according to the Adyen Index 2024, a retail report based survey of over 38,000 shoppers and 13,000 merchants across 26 markets -- including over 1,000 consumers and 500 businesses in Malaysia -- conducted from Jan 15 to Feb 1, 2024.
Adyen said Malaysian consumers are shifting away from physical wallets, with 41 per cent now relying on mobile-enabled solutions like tap-to-pay.
"Malaysian shoppers are inclined towards quick and convenient ways of paying, fueling the demand for streamlined in-store experiences such as kiosks and one-click checkouts," it said in a statement today.
On the popularity of social commerce among consumers, the index showed that 73 per cent of Malaysians are utilising social media for shopping, much higher than the global average of 44 per cent.
"Malaysians also shop on these platforms approximately six times per month," Adyen said.
The research further found that millennials were most likely to shop on social media platforms than any other age group, with 80 per cent saying they had done so in the last 12 months.
It added that Gen Z consumers clocked the greatest growth -- of all the Gen Z consumers who have shopped on social media over the past 12 months, 17 per cent were first-time buyers.
Recognising the growth potential, businesses have swiftly adapted strategies to align with evolving customer preferences, Adyen said.
"A striking 73 per cent of Malaysian retailers report experiencing revenue growth after enabling social commerce," it said.
Based on the survey, 45 per cent of consumers also have expressed loyalty to retailers who facilitate direct purchases via social media platforms, emphasising the need for seamless omnichannel experiences in fostering customer loyalty.
Adyen Malaysia country manager Soon Yean Lee said the recent findings reveal a significant shift towards digital payments and social commerce with Malaysian consumers leading the global trend in mobile wallet usage.
"To retain customer loyalty and maintain competitiveness, businesses must be nimble in catering to these changing consumption preferences," he said.
-- BERNAMA
