Visa-Commissioned Study Estimates Migration to Electronic Payments Added 1.9 Billion Ringgit to GDP in Malaysia


A Visa-commissioned study, conducted by Moody’s Analytics to analyse the impact of electronic payments found that increased use of electronic payments, including credit, debit and prepaid cards added RM1.9 billion to the gross domestic product (GDP) and the equivalent of 24,000 jobs in Malaysia were added from 2012-2015 due to increased card usage.1

Global Growth
The global study, conducted by Moody’s on behalf of Visa, analyzed the impact of electronic payments on economic growth across 70 countries, including Malaysia, over a five-year period.  The Study found that the increased use of electronic payment products, including credit, debit and prepaid cards, added US$296B to global GDP, while raising household consumption of goods and services by an average of 0.18 percent per year2. In addition, Moody’s economists estimate that the equivalent to 2.6 million new jobs were created on average each year as a result of the increased use of electronic payments. The 70 countries make up almost 95 percent of global GDP.

Malaysia Impact
The proliferation of electronic payments has been shown to spur greater consumption of goods and services in Malaysia. According to the Study, consumption in Malaysia was one percent higher between 2011 and 2015 than it would have been if the use of electronic payments had not grown. In addition, total consumption increased on average by 0.07 percent over the sample period.

“The latest findings by Moody’s Analytics reinforce the many positive benefits that electronic payments bring to our local economy,” said Ng Kong Boon, Visa Country Manager for Malaysia. “Electronic payments contributes to a more stable and open business environment. Not only does it promote consumer confidence, convenience and financial inclusion for those without access to a formal banking system, electronic payments also lower cash handling costs, guarantees payment to merchants and help minimize what is commonly referred to as the grey economy -- economic activity that is often cash-based and goes unreported,” he said.

Ng also emphasized the importance of public policies that promote an open and competitive payment landscape which can lead to increased consumption.  “At Visa we are excited to be constantly offering new innovative payment solutions via partnerships and collaborations with local governments, financial institutions, merchants and technology companies that share our goal in growing commerce, accelerating electronic acceptance and spreading the benefits of card payments.”

With electronic payments increasingly acknowledged as being both secure and convenient, consumers in Malaysia have become more comfortable using cards and other electronic payment methods to make purchases, payments and transfers. The overall boost in transactions led to an additional 1.9 billion ringgit (US$0.49 billion) to Malaysia’s GDP between 2011 and 2015. The country also experienced a subsequent bump in employment by  to the equivalent of  24,000 new jobs from 2012 to 2015 to accommodate the additional demand for goods and services created through use of electronic payments in the economy.

“The increase in job opportunities and overall economic growth shows the economic value that electronic payments bring to the financial and economic ecosystem - from individuals to businesses and governments. We believe as the country continues to go cashless, we will see more positive impacts of electronic payments to the Malaysian economy,” said Mr. Ng Kong Boon, Visa Country for Malaysia.


1 To measure the impact of card usage on GDP, the consumption figure was multiplied by the portion of GDP that is represented by consumer spending in each country. The model can therefore estimate the impact of card usage on the overall economy.
2 Moody’s Analytics Study, “The Impact of Electronic Payments on Economic Growth” looked at the impact of card penetration on the private consumption of 70 countries over five years between 2011 and 2015.


About Visa

Visa Inc. (NYSE: V) is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world's most advanced processing networks — VisaNet — that is capable of handling more than 65,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit, or set rates and fees for consumers. Visa's innovations; however, enable its financial institution customers to offer consumers more choices: pay now with debit, pay ahead of time with prepaid or pay later with credit products. For more information, visit