Digital Payments Transforming Travel in Malaysia

Cross-Border Digital Payments Jump 45% As Malaysia Targets 47 Million Visitors

Iman Aminuddin

21st October 2025 - 3 min read

Alipay+ has reported a 45% year-on-year increase in mobile wallet transactions across Malaysia, reflecting a shift in how international travellers are choosing to pay for goods and services.

The growth extends beyond the capital, with secondary cities such as Semporna, Kuantan, and Tawau seeing rising adoption of mobile-first payment methods.

Malaysia ranks among the world’s top five most popular destinations for Alipay+ users and leads Southeast Asia by transaction volume. With the Visit Malaysia 2026 campaign aiming to attract 47 million visitors, Alipay+ is expanding its network to support local merchants and tourism operators.

Cross-Border Payments Gain Traction Among Travellers

Alipay+ currently supports cross-border payment acceptance across more than 100 markets and partners with 40 digital wallets, representing 1.8 billion users globally.

In the first half of 2025, over 6.5 million digital wallet users made their first cross-border payment through Alipay+ whilst travelling. Malaysia remains a top destination, particularly for visitors from China, Hong Kong SAR, Kazakhstan, and Thailand, with China representing the fastest-growing source market.

Cross-border transactions via PayNet’s DuitNow QR increased by more than 80% year-on-year during the same period. Tourism spending through Alipay+ at DuitNow QR merchants grew by over 150%, benefitting local small and medium-sized enterprises.

Douglas Feagin, President of Ant International, said mobile wallets can act as a catalyst for economic growth by connecting travellers and businesses in new ways. He added that Alipay+ aims to support the travel ecosystem with AI-powered payments and digital services designed for mobile-savvy consumers.

Spending Patterns Shift Toward Local Experiences

Traveller behaviour is changing, with more visitors seeking value and exploring local merchants rather than sticking to major retail centres.

Intra-Asia travel continues to drive growth, with transactions by Alipay+ partners in the region up 32% year-on-year. Redemptions through A+ Rewards, an in-app marketing platform offering local promotions, rose by 57%, whilst transactions under USD10 increased by 37%.

Spending is also diversifying beyond retail and dining. Payments for local services such as beauty, medical, and education are on the rise. In South Korea, K-beauty service payments surged by 115% year-on-year.

In Malaysia, greater digital payment acceptance has enabled tourists to explore experiences ranging from hawker stalls to heritage sites, supporting both small and large businesses.

The shift towards digital payments extends beyond tourists. According to RMFLS 2025, 90% of Malaysians now use e-wallets while only 10% still do not use them at all. Among e-wallet users, 43% report spending about the same as they would with cash or cards, whilst 24% say they tend to spend more with e-wallets, and another 24% say they tend to spend less.

This growing reliance on digital payments has raised some questions. Recent disruptions to major banking services have highlighted the vulnerability of a largely cashless population, as explored in our article on Malaysia’s cashless dependence.

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Iman Aminuddin

Iman writes about personal finance with curiosity. She is interested in the stories behind money, the hesitation around big decisions, and the small habits that shape financial futures. Off the clock, she is either dissecting a film or climbing her way up the leaderboard in her favourite games.