Traders may finally shift to cashless payment to woo digital savvy youths, says economist
SHAH ALAM - Traders are told to leverage on cashless payment to increase sales as more digital savvy youths use e-wallets.
Sunway University Economic Studies Programme Dr Yeah Kim Leng said once traders are aware that cashless payments can effectively boost business volume and attract new customers who prefer digital payment methods, traders will quickly adopt them.
"Traders will be able to meet these expectations of digital-savvy clients while expanding and integrating their traditional and digital businesses by adopting a safe, convenient and a popular method of payment," Yeah said.
He said cashless payment should be encouraged because they improve the country's overall economic efficiency and competitiveness.
It also reduces transaction costs, promote economies of scale and scope, increase data gathering and streamline information processing system, all of which will lead to better decision making by individuals and organisations.
"They will be much more convinced if it is demonstrated to be more convenient, safe, and secure than dealing with physical currency," said Yeah told Sinar Daily.
But a cafe owner Norasikin Abdul Rani said she prefers cash over QR code payment since it is easier to close her accounts. She is aware that some establishments take credit cards or online banking, but she prefers cash.
" Workers here spend RM20 or less. We are not an overpriced cafe, so I believe cash is preferable to cashless payment," Norasikin said.
"Not only that, but we used cash to purchase groceries for our inventory. Most businesses, such as a wet market or a convenience store, only accept cash. Online or card payments can be more difficult to process at
times."
Furthermore, owner of Limoka Coffee Azrul Hanaffi Rauzan said customers sometimes falsely claim to have made a payment, even when the traders confirm that no payment has been received.
Azrul said another challenge is that during crowded events like Ramadan, it is difficult for traders to check their phones and ensure that payments have been successfully received.
However, Azrul said there are various facilities available in the market for traders to address this issue.
For instance, there are "Bayarlah" Apps that offer devices capable of displaying a message like "you have received xxx payment" when a consumer scans the vendor's QR code, indicating that the payment has been successfully accepted by the seller, he added.
D Luboq Cafe owner Ramlah said that the bank must persuade traders that using cashless payment is faster and safer.
She said the cashless payment method such as QR codes, Touch 'n Go, credit machines and debit cards must be simple and easily accessible, ensuring quick transactions.
"My recommendation is to provide clients with more flexible payment options.
" I rarely have cash with me, so it's not always easy for me to pay for something with cash if I'm the consumer.
" It would be ideal if businesses could accept cashless payment methods," Ramlah said.
