Is it better to use cash or card in Malaysia?

Do you have a trip to Malaysia on the horizon? If the answer is yes, you’re probably already planning your itinerary and setting up a travel budget. Regardless of how much you plan to spend, it’s important to understand the financial habits of people in Malaysia compared to those in the UK.

Malaysians still primarily use cash for paying, even though the near future is expected to be much more contactless. Since it can be tricky to decide what you should rely on during your trip, we’re here to help. We’ll dive into the details to answer the question - Is it better to use cash or card in Malaysia?

We’ll also show you a cost-effective way to manage your spending in Malaysia. For any international purchases, whether online or in person, you can rely on the Wise card. You can even withdraw cash like a local for low fees* at the mid-market exchange rate.

How cash-centric is Malaysia?

Cash is still the number one payment option in Malaysia. However, the popularity of digital wallets and cards is on the rise and predictions show that these methods will dominate in the future. On average, over 30% of POS payments in Malaysia are made in cash, with e-wallets closely following at 24%.

However, this is expected to change in just a few years. Digital wallets will likely be used for over 40% of all transactions, with cash and credit cards sharing the second place.

Cash etiquette in Malaysia²

Tipping isn’t traditionally a part of Malaysian culture, but it’s become more common due to Western influences. However, it’s still not expected and is generally seen as a sign of appreciation.

There’s no set amount for tipping, so it comes down to your judgement. People usually leave between 5% and 10% to their servers, tour guides or taxi drivers, but this is just a general guideline. However, keep in mind that a service fee is often included in restaurant prices and tipping is a nice bonus on top of that.

You could also leave any leftover change from the bill instead of worrying about percentages. This is also a nice way to let your server know you’re satisfied with the service and the overall experience. These are the general rules, but the tip amount will mostly depend on the circumstances.

Cash or card in Malaysia - the comparison

We’ve listed some situations where you’ll be paying for things in Malaysia. Here’s whether you’ll be able to pay by card, in cash or both:

Paying for…	Card 💳	Cash 👛
🚕 Taxis3	Usually, yes	Yes
🏪 Convenience stores	Usually, in larger stores	Yes
🚌 Public transport4	Only on KTM trains	Yes
🍽️ Restaurants5	Usually, in bigger cities	Yes
🦐 Hawker centres	No	Yes

Using your card in Malaysia at an ATM⁶

There are over 13,000 ATMs in Malaysia and they’re run by around 25 banks. They can be easily located in big cities, but even smaller towns typically have some available. You’ll be able to find them in shopping malls, main streets, town squares and, of course, banks.

Withdrawal limits at Malaysian ATMs vary, but you can typically expect between 1,500 and 3,000 MYR per transaction. Make sure you check with the bank operating the ATM you're using.

It’s always recommended to choose to withdraw in the local currency without a currency conversion. This will mean you get a better rate, as the conversion will be done by your bank or card provider instead of the ATM provider.

Check out the latest GBP to MYR conversion rates below:

Will my UK debit card work in Malaysia?

Yes, your UK debit card will most likely work fine in Malaysia. However, keep in mind that some places might not accept cards as a form of payment at all. Also, additional fees will apply for using your card abroad.

Can I use my UK credit card in Malaysia?

Yes, you can use your UK-issued credit card in Malaysia, as long as you go to a place that accepts cards.

Reasons to use cash in Malaysia

Since cash is the most popular payment method in Malaysia, you’ll blend right in when using it. It’s accepted everywhere and it’s often the only option in smaller shops and restaurants. Also, some things, such as public transport, can only be paid with cash.

Besides, cash is often a better choice, as you might miss out on certain experiences if you don’t carry it. For example, you won’t be able to buy anything from street vendors or from wet markets and hawker centres. In case you come across some small, family-run restaurants in Malaysia, you probably won’t be able to pay with your card. Also, in case you like leaving cash tips, it’s good to keep some Malaysian ringgit on you.

Reasons to use credit or debit cards in Malaysia

The main reasons to use cards during your trip to Malaysia are safety and convenience. Carrying large amounts of cash when travelling makes you an easy target for pickpockets, so it’s a good idea to have your cards with you instead. Also, if you use your card to pay, you won’t have to deal with bringing spare ringgit back home.

Are contactless card payments common in Malaysia?

Contactless payments are very popular in Malaysia. In fact, a few years ago, a survey by Visa found that Malaysia was one of the leading cashless markets in Southeast Asia.⁷ The contactless limit in Malaysia is 250 MYR⁸, after which you’ll need to enter your PIN.

Your Wise card can also be used for contactless payments in Malaysia. If you don’t want to carry cards with you, you can get the Wise virtual card with the same features.

Other payment methods in Malaysia

Besides traditional credit and debit cards, other payment methods are also available in Malaysia.

Mobile payment⁵

The most popular digital wallet apps such as Apple Pay, Google Wallet and PayPal are also used in Malaysia. However, there are some local options as well, like GrabPay and Touch 'n Go. GrabPay has various features beyond just making payments. You can also earn GrabRewards, which can be redeemed for discounts or various rewards, and transfer money to other GrabPay users. If you plan on using any of these wallet apps during your trip, make sure you update them before you leave to avoid any issues.

For an additional layer of security, you could add your Wise virtual card to your wallet. You can also freeze your Wise virtual card after every transaction.

Buy now pay later options (BNPL)⁵

BNPL services are becoming popular in Malaysia. A well-known local BNPL option is Atome. Atome allows you to split your purchases into 3 interest-free payments, with the first paid upfront.

What is the best way to pay in Malaysia: cash or card?

If you’re still wondering - cash or card in Malaysia? - the answer is probably cash. Malaysia is predicted to become much more digital in the near future, but until that time comes, stick to the most traditional payment method. It’s used everywhere and sometimes even the only option. If you don’t want to entirely rely on cash, you could also bring your cards with you or make sure your digital wallet apps are up-to-date.

However, the best solution for spending in Malaysia is combining the safety and convenience of cards and the popularity of cash. Cards can be a good option when visiting big cities, while cash could be your primary payment and tipping method.

Spend like a local in Malaysia with the Wise card

Want to spend like a local in Malaysia without worrying about exchange rates and hidden fees? The Wise card might be just the option you were looking for.

Use your Wise card for international payments, from your accommodation costs to daily expenses. It automatically converts your pounds at the mid-market exchange rate with only a small, transparent currency conversion fee*.

You can also use it to easily withdraw cash from the ATMs in Malaysia. Each month, you can make 2 withdrawals of up to 200 GBP for free. After that, there is a charge of 0.5 GBP per withdrawal. There’s also a 1.75% fee on any amount you withdraw above 200 GBP. Keep in mind, however, that additional charges may occur from independent ATM networks.

Spend like a local with Wise 💳

Cash or card in Malaysia - FAQs

Here are some of the most frequent questions about using cash or cards in Malaysia:

Do you need to bring cash to Malaysia?

Cash is the most popular payment method in Malaysia, but you might be able to get by with your card if you’re travelling to a big city.

Can I use my UK debit card in Malaysia?

Yes, you can use your UK-issued debit card for spending in Malaysia.

Can you use contactless payments in Malaysia?

Yes, contactless payments are quite common in Malaysia.

Should I exchange money before I travel to Malaysia?

There’s no need to exchange money ahead of your trip. You could also rely on your Wise card and have it automatically convert money for you.

Do Malaysian taxis take cards?

Taxis in bigger cities accept cards as a form of payment.

What’s the best way to pay for things in Malaysia from the UK?

Malaysians mostly use cash for paying, but it’s also common to pay with your card or a digital wallet.

Please see the Terms of Use for your region or visit Wise fees & pricing for the most up-to-date information on pricing and fees*.

Sources used:

1. Statista - biggest POS payment methods in Malaysia
2. Traveloka - tipping in Malaysia
3. Grab Malaysia - paying with your card in Malaysian taxis
4. Kuala Lumpur Insider - paying for public transport in Malaysia
5. Shuttle Global - popular payment methods in Malaysia
6. ATM Fee Saver - ATMs in Malaysia
7. Payments Journal - contactless payments in Malaysia
8. OCBC - contactless limits in Malaysia

Sources last checked on date: 09-Oct-2024