In just five years, Malaysia's payment landscape has transformed drastically. What used to be a cash-first society has shifted rapidly toward digital wallets—and now, that shift is beginning to go global. 

The Rise of E-Wallets in Malaysia

Thanks to the combined pressures of the Covid-19 pandemic and the push for contactless transactions, e-wallets like Touch 'n Go (TNG) have surged in popularity. According to Bank Negara Malaysia's 2024 report, Malaysians made a whopping 14.7 billion electronic transactions worth nearly RM700 billion.

What's more impressive? E-money—including e-wallets and card-based digital money—made up 38% of these transactions. Of that chunk, 64% were specifically from e-wallets. That puts e-wallets just a hair behind online banking in terms of how Malaysians move their money.

Teamwork Behind the Digital Push

According to Muhamad Hanif Asa'Ari from the Ministry of Domestic Trade and Cost of Living, this wasn't just the result of market demand. It took tight collaboration between the government and the private sector.

Speaking at the 2025 World Expo in Osaka, Hanif shared that this "whole-of-government" approach was key. Ministries worked hand-in-hand with telcos and fintech players to bring connectivity—and digital transactions—to even the most remote parts of Malaysia.

This collaborative approach included initiatives like the Retail Digitalisation Initiative (Redi), which aimed to help rural SMEs embrace cashless solutions.

From a 15,000 Merchant Goal… to 2.6 Million

Originally, the Redi programme hoped to get 15,000 merchants using e-wallets by 2025. As of last year, that number has skyrocketed past 2.6 million.

The next big challenge? Bridging the digital divide between urban and rural users. Urban e-wallet usage sits at 63.8%, while rural adoption trails at 36.5%. The Ministry's target for the next national plan is to close that gap.

TNG Digital, the force behind the TNG eWallet, has played a major role here—claiming responsibility for onboarding 38% of PayNet merchants to date.

A Small Business Success Story

Yiap Phing Phing, who runs Village Burger in Penang, used to be strictly cash-only. But after going digital with TNG eWallet, her whole business operation changed.

"We used to run blind," she said. "We didn't know what was selling, when we were busiest, or who kept coming back."

With access to digital records, she can now monitor sales trends, reward loyal customers, and manage her staff more effectively. "It's not just about payments anymore. It's strategy."

Queues are shorter, cash handling is simpler, and her end-of-day reports are a breeze.

Government Incentives Driving Adoption

TNG Digital COO Mohd Herman Sarbini also pointed to various government programmes like eMadani and eBelia, which provided direct incentives to encourage users to adopt e-wallets.

"We've participated in all six of these programmes across the past six years," he said, noting that around 25 million users have benefited.

And the company isn't stopping there—recently, they launched a registration feature for ASEAN tourists so that visitors to Malaysia can use TNG eWallet to shop like locals.

What's Next for TNG eWallet?

Looking ahead, TNG plans to roll out a business-focused version of its eWallet, designed to offer financial services and lending tools for SMEs. They're also working on an in-app restaurant ordering feature—think AliPay's seamless in-app dining experience—slated for launch next year.

Travel Perks with TNG: A Japan Test Drive

If you're heading overseas, TNG eWallet has some perks in store. From travel insurance and tour bookings to flight deals with Firefly and Klook, it's becoming a true travel companion.

You can even get a roaming eSIM through the app to avoid fumbling for a SIM card when you land. And with cross-border payment compatibility through PayNet, Visa, and AliPay+, you can use your eWallet in countries like Japan—albeit with some limitations.

Using TNG eWallet in Japan

At the 2025 World Expo in Osaka, Malaysian visitors found that many central Osaka retailers, thanks to PayPay's collaboration with AliPay+, now accept TNG eWallet. You can scan and pay at convenience stores, malls, and some restaurants. Just look out for the TNG, PayPay, or AliPay+ logos—or ask the staff.

That said, Japan is still very much a cash-friendly country. Not all places are ready for QR payments, and some public transport—like trams—only accept local cards or physical yen. So, pack a credit card or some yen just in case.

Final Thoughts

TNG eWallet's expansion abroad isn't just about spending overseas—it's a signal that Malaysia's digital payment ecosystem is maturing. Whether it's supporting rural SMEs or helping travelers breeze through Osaka, the little blue app is quietly proving it's more than just a local convenience. It's Malaysia's cashless passport to the world.