81% of Malaysians Have Adopted Digital Cards for Convenience and Security, states IDEMIA Secure Transactions Global Study

The IDEMIA Secure Transactions (IST) global study, conducted by the renowned research agency Dentsu Insights, uncovers that design, convenience, and sustainability are the primary catalysts driving consumer payment trends. Security remains a concern, and consumers look for safe ways to pay.

As innovations, whether digital or physical, revolutionise every area of our daily lives, the payment sector is no exception. In this exclusive survey, carried out between December 2023 and January 2024, users around the world were interviewed on how they pay and what their expectations are when it comes to payment methods.

User Expectations Centred Around Three Priorities: Design, Convenience, Sustainability

Drawing from the feedback of more than three thousand respondents from 12 countries across 6 continents, IST gleamed the following key findings from Malaysian respondents:

• In Malaysia, 81% of consumers have already adopted digital cards, citing convenience and security as the primary reason for their adoption.
• 88% of consumers would have a more positive perception of their bank if they offered a biometric card, and 87% are interested in obtaining a numberless physical card as a security measure.
• 64% favour eco-friendly cards, while 40% of consumers prefer physical payment cards for in-store payments in which, underscoring the need for secure and sustainable payment solutions across the region.
• While 85% of consumers express concerns about fraudulent transactions, 67% have expressed a willingness to pay in-store via biometric checkout methods as a security measure.

Based on APAC and international respondents, the report also highlights three distinct consumer needs regarding users’ payment preferences:

Design matters: with the increasing number of options, from metal to OLED cards among others, card design has become a key differentiator. Expectations and appetite for innovative card designs are ever-growing:

• 72% of respondents care about the design of their payment cards, with 83% interested in having a metal card, and 84% showing a preference for numberless physical cards as an added security feature.

Flexibility is another crucial factor, enhanced by the combination of physical and digital cards made possible by mobile phones.

• With 71% of respondents utilising a digital payment card, and 68% of those without one express a desire to obtain a digital card within the next three years.
• Additionally, 86% of users value the option to activate their physical card by tapping it on their phone, highlighting the importance of seamless integration between physical and digital payment methods.

The shift towards sustainability in payment methods is also notable as 69% of consumers would choose an eco-friendly card and 71% of respondents are willing to participate in recycling programs for expired cards.

This growing demand for sustainable options underscores the need for payment providers to innovate and prioritise eco-friendly practices to meet evolving consumer expectations.

Understand Usage to Develop Payment Solutions That Best Meet Consumers’ Needs

Attuned to the preferences of its consumers, IST remains steadfast in its commitment to offer innovative services tailored to individual needs, while embracing the rapid advancements of the digital realm. Through regular surveys, IST aims to gain an in-depth understanding of consumers’ payment preferences and habits, positioning itself as the payment market’s technological expert armed with unparalleled knowledge of consumer behaviour.

IDEMIA Secure Transactions confirms its leadership by proactively addressing the three priorities identified in the survey with tailored solutions.

“As a trendsetter, we strive to be at the forefront of the evolutions in our industry and this survey testifies to this ambition. Consumers have high expectations for their payment solutions and the way they use and manage their payment means. It is IST’s role to meet and exceed them, by offering ever more innovative solutions.” says Julia Schoonenberg, Executive Vice President Payment Services at IDEMIA Secure Transactions.

IST has continually innovated to offer a myriad of card design options. Over the past decade, banks and FinTechs have disrupted the payments ecosystem, making available multiple banking options for consumers. Simultaneously, as banks increasingly digitise their services, the physical card and its design become a crucial tool for all card issuers to maintain strong customer connections. From card materials such as metal to special inks, and innovative features such as illuminating cards, IST continues to co-innovate new features and co-design captivating artwork.

In today’s era, where instant gratification is the norm, the mobile phone plays a central role in our daily lives. IST provides digital solutions to accompany banks and FinTechs in this essential transition. IST embraces the “best of both worlds” by offering both physical and digital payment solutions, with the highest level of security in terms of cryptography and tokenisation, for a comprehensive strategy that appeals to diverse audiences.

With regards to sustainability, IST supports card issuers in their ecological transition, by entirely reimagining the traditional payment products and attached services. IST encourages the use of innovative and ecofriendly materials and services through its GREENPAY offers, such as recycled PVC or the recently announced regenerative solution for bank customers GREENPAY Wallet. IST demonstrates its commitment to continuously improving the sustainability of each part of the payment card value chain.

In the APAC region, consumer preferences emphasise the necessity of innovative and sustainable payment methods. IST’s efforts to create aesthetically pleasing and highly secure card solutions, together with its commitment to sustainability, ensure that card issuers can fulfil their customers’ evolving expectations. IST’s commitment to innovation and environmental responsibility positions it as a payment card industry leader, meeting the different demands of consumers across the region.