KUCHING: Payment reliability is becoming a daily operational pressure for Malaysian businesses as cashless transactions move from convenience to necessity.
Paydibs chief executive officer Tee Kean Kang said that by 2026, digital payments will no longer be optional. Instead, they will be a consumer-driven requirement that reshapes how businesses operate.
“As digital payments become the default, businesses face higher expectations around reliability and clarity, especially as margins tighten and customers grow less tolerant of friction,” he said.
According to Kang, the cost of payment friction is most visible when systems fail at critical moments. Issues such as delayed settlements, unclear confirmations or system outages during peak periods can have immediate consequences.
“When settlements are delayed, confirmations lack clarity, or systems fail during peak periods, the impact is immediate — constrained cash flow, disrupted workflows and weakened confidence in going fully cashless,” he said.
He added that as Malaysia’s digital economy matures, payment infrastructure will increasingly influence business performance.
“The strength and reliability of payment infrastructure will determine which businesses thrive and which struggle to keep pace,” he said.
Digital payments are now routine for consumers, with e-wallets and QR-based transactions widely embedded in daily life. Kang noted that mobile-first payment methods are used by a significant majority of consumers.
This widespread adoption has translated into scale. Digital commerce and services are contributing close to US$40 billion this year, while digital payment transactions exceed US$200 billion in value.
“At this level of activity, payments are no longer a background function,” he said.
Looking ahead, Kang said businesses are placing greater emphasis on liquidity certainty, particularly how predictable settlement cycles are and how quickly funds become usable.
“What matters increasingly is how quickly funds become available and whether settlement timelines are predictable,” he said.
Expectations are set to rise further as Malaysia moves towards round-the-clock settlement capabilities such as RENTAS+.
“As Malaysia’s financial system moves towards 24-hour settlement through initiatives like RENTAS+, expectations around payout speed and visibility will continue to rise,” he said.
Operational simplicity is also becoming a deciding factor in the choice of payment gateways. Kang said managing multiple payment methods, devices and reporting tools can create unnecessary daily strain.
“Businesses are looking for unified systems that integrate payment acceptance, confirmation and reporting, reducing workload and operational risk,” he said.
At the same time, wider QR adoption has increased exposure to fraud and operational errors, particularly for businesses operating on tight margins. Clear confirmation and safer transaction flows are therefore becoming essential.
“Trust in payment systems will increasingly be built through design rather than branding, with clear confirmations and reduced opportunities for error becoming basic expectations,” he said.
Kang added that merchants are scrutinising fees, processing paths and settlement timelines more closely, seeking better visibility over how funds move and where they sit during processing.
“In 2026, control over payment infrastructure will be just as critical as speed, because speed without visibility no longer meets the needs of modern businesses,” he said.
Cross-border acceptance is also drawing growing attention as tourism, travel and online platforms bring international customers to local merchants. Kang noted that cross-border QR transactions exceeded 11 million in the first half of 2025 alone.
“This trend is expected to accelerate as Malaysia prepares for Visit Malaysia 2026,” he said.
Beyond transactions, payment data is increasingly supporting access to capital through embedded finance models tied to real sales performance.
“Payments are evolving into a gateway for embedded finance, where real sales history enables fairer and faster financing, including merchant cash advances and dynamic credit lines,” he said.
Kang stressed that payment decisions can no longer be treated as a periodic fix, as unreliable or complex systems introduce costs that businesses can no longer absorb.
“In a digital economy where transactions are constant and margins are tight, payment systems must deliver certainty and consistency,” he said.
“When done right, payment infrastructure does more than move money. It allows businesses to operate with confidence, adapt to change and compete effectively.”
