Retail in Asia

In People

Malaysia on track to becoming a cashless nation by 2030, says ShopBack

During the third quarter of 2023, the economies of several Southeast Asian countries demonstrated pockets of growth and resilience, despite challenges posed by monetary tightening measures and a slowdown in global demand, according to McKinsey. Notably, nations such as Malaysia, the Philippines, Singapore, and Vietnam experienced an upturn in GDP growth during this period.

Malaysia in particular saw faster growth than anticipated in the third quarter, with increased domestic consumption boosting its rise. 

SEE ALSO: Singapore hikes GST to 9 percent in 2024 despite rising cost of living

Retail in Asia speaks with Vincent Wong, general manager, Malaysia, at shopping, rewards and payments platform ShopBack, discussing Malaysia’s consumer landscape and his company’s latest initiatives. 

RiA: Malaysia’s economy has demonstrated higher growth than anticipated in 2023. Can you describe its consumer landscape and how that has evolved over the years?

Vincent Wong: Malaysia’s retail and e-payments landscape alongside the rise of a new generation of consumers has unveiled a clear trend: consumers are yearning for more rewarding and seamless shopping experiences. Studies have shown that 83 percent of Malaysian shoppers want shopping experiences that offer tangible rewards and there has been an increasing significance of flexible payment options, with 55 percent of shoppers likely to abandon their shopping carts if their preferred payment method isn’t available. 

Furthermore, Malaysia is on track to becoming a cashless nation by 2030 and is one of the most developed contactless payments markets in Asia Pacific, with 7 out of 10 Malaysian consumers actively using cashless payment methods, which shows that the reliance on cash for daily transactions is decreasing.

Millennials and Gen Z users are driving the transition with their increasing use of cashless payments via QR-code, contactless cards, online shopping and in-app payments. 

Source: Shutterstock
RiA: How are ShopBack offerings designed around that behaviour?

Wong: In efforts to cater to this growing demand, ShopBack aims to provide shoppers with the flexibility to choose their preferred payment method through our payment services. We strive to deliver a rewarding shopping experience by allowing shoppers to supercharge their savings and earn cashback on top of the rewards from their debit or credit card payments, when they shop both online and in-store.

To date, Malaysian users have earned more than RM200 million (USD43.5 million) worth of cashback with ShopBack. We want to continue to deliver on this by providing more options and flexibility. Our mission remains to make ShopBack the most rewarding way to shop and we aim to deliver even greater value and accessibility for both shoppers and partnering merchants.

RiA: Can you tell us about some of your recent initiatives at ShopBack?

Wong: ShopBack is continuously seeking innovative ways to reinvent the shopping experience for consumers. With this in mind, we recently introduced our latest payment offering, ShopBack Pay, which allows shoppers to easily make payments in-store using their preferred payment method while earning cashback and rewards as they pay. Furthermore, the earned cashback can also help them save on their purchases with exclusive deals and can be used to pay for upcoming purchases. The introduction of in-store rewards provides shoppers with a truly rewarding shopping experience from start to end all within the ShopBack app. Apart from gaining access to an extensive range of brands and exclusive deals, shoppers can now look forward to seamless in-store payments, making their shopping journey more convenient than ever.

We have a large user base with over five million users and are the leading discovery and cashback platform in Malaysia, as well as the preferred marketing partner for thousands of online and offline retailers, as well as brands across fashion, sports, health and beauty, travel, home and lifestyle. Through our payment services, shoppers can tap into ShopBack’s extensive network of merchants to shop and earn at their favourite brands such as Christy Ng, Jovian, JD Sports, Agoda, Puma, Bata, Marks & Spencer, Jakel and more.

SEE ALSO: Analysing footfall: How to leverage Asia’s evolving retail landscape to deliver an exceptional customer journey

RiA: What’s next for ShopBack, and what can shoppers expect from the platform in 2024? 

Wong: Currently, ShopBack is the first entry point for over 30 million shoppers in the Asia-Pacific, and now aims to be the last checkout point with ShopBack payment solutions to help partners increase conversions and basket size while driving customer loyalty.

The team at ShopBack is always working relentlessly to create rewarding experiences for our users, and will continue to make sure every transaction is a win with ShopBack.