Samsung launched its mobile payment system, Samsung Pay, in Malaysia via a partnership with Malaysian banking leader Maybank. The move could spur growth of mobile payments in Malaysia, where digital banking has taken root, but proximity payment usage is still in the early stages.
Samsung, the No. 1 phone brand in Malaysia, is offering its Samsung Pay to customers of Maybank. It’s the first bank in Malaysia to tie into the Samsung Pay system.
A recent survey by EY found that while mobile wallets are not unheard of, there is still plenty of room for growth. The survey found that 12% of internet users in Malaysia regularly use proximity mobile payments. Respondents were significantly more comfortable with other digital financial services, such as digital banking.
In fact, the survey found that almost nine in ten internet users in Malaysia tap into digital banking at least occasionally, and almost seven in ten said they do so via their bank’s app. That suggests that there could be a significant appetite for payments via mobile phone.
According to a Nielsen survey in March 2016, more consumers in Malaysia would be likely reach for their mobile wallets if certain improvements are made. A majority of the respondents said they would begin or increase use if security was heightened, or if incentives or loyalty rewards were given.
As of the end of 2016, Samsung Pay had been introduced to 12 countries worldwide, including Australia, China, Singapore, South Korea, and Thailand.