From Cashless to Contactless: A Conceptual Review of QR Payment in Malaysia

Abstract

The shift in payment methods in Malaysia has been very quick. Cash Payments methods have been replaced with Contactless payment methods. With this significant change, QR payments have become one of the main methods of enabling digital transactions in Malaysia. This paper aims to explore the main factors influencing the adoption of QR payments in Malaysia. It does this by explaining the current literature regarding the adoption of QR payments in Malaysia using a review and synthesis model. Broadly categorized, the author examines the technological, consumer, and market and policy dimensions of QR payment adoption literature. The author notes a number of factors which influence the adoption of QR payments and which fall within the 3 categories mentioned. In the technological dimension, readiness of the technology, perceived ease of use, and system accessibility of the QR payment technology are significant. In the consumer dimension, trust, convenience, and repetitive use influence consumer adoption of QR payments. At the market level, the author notes the influence of institutional, governmental, banking, and fintech sponsorship/ support and how this impacts the adoption of QR payments. The author attempts to describe how the identified factors influence QR payment adoption in Malaysia and confirms the importance of untested empirical research as it pertains to the adoption of QR payments in the context of a cashless payment system.