KUALA LUMPUR: Selangor and Penang have achieved 90 per cent digital payments penetration while Perlis, Kedah and Perak garnered over 60 per cent, 80 per cent and 49 per cent respectively up to October this year.
Payments Network Malaysia Sdn Bhd (PayNet) government digitalisation senior director Firdaus Ghani said Johor is also showing a good progress at over 50 per cent cashless usage.
Perlis has made great progress, increasing cashless usage from 8.0 per cent in 2020 to 61.56 per cent in 2022.
The state implemented various initiatives, including payment portals involving multiple agencies.
"The challenge is in motivating people to go cashless, and Perlis state government is planning to make cashless payments mandatory for renewing licences next year," Firdaus added.
So far eight agencies including Perbadanan Tabung Pendidikan Tinggi Nasional, 155 local authorities through Ministry of Local Government Development, Ministry of Investment, Trade and Industry, Jabatan Imigresen Malaysia, Majlis Amanah Rakyat, Mahkamah Persekutuan Malaysia, Pertubuhan Keselamatan Sosial and Kumpulan Wang Simpanan Pekerj have achieved full cashless status.
"To achieve high cashless adoption, we found that having local champions is essential. Leaders like the menteri besar of Selangor and Kedah have played key roles in promoting cashless adoption," Firdaus told reporters after the prize giving ceremony for 'Cashless Boleh' campaign 3.0 here today.
Firdaus said 20 agencies involved in the cashless programme contribute more than 70 per cent of the federal government's revenue, including customs, immigration and the Inland Revenue Board.
Engagement and pushing for cashless payments have been critical and there are several challenges faced related to infrastructure, such as internet connectivity.
Sabah and Sarawak are still working on increasing their transactions, Firdaus said.
As for the nation, he said the cashless usage target is to reach more than 90 per cent by 2025.
PayNet is still discussing and seeking approval from the Finance Ministry to continue with Cashless Boleh 4.0.
"As for the upcoming year, we'll begin in December, as many people visit government agencies for various services like passports and licences during that time," he added.
Paynet group chief executive officer PayNet Farhan Ahmad said as the retail payments infrastructure provider is proud to facilitate the nation's journey to embrace the digital economy.
"We do this by making digital payments available to the rakyat in a secure, accessible and inclusive manner.
" With the current public sector digital payments adoption rate at over 80 per cent, both the rakyat and the government are already experiencing the amazing benefits from the efficiencies gained, Farhan added.
Finance Ministry deputy secretary General (Management) Datin Rashidah Mohd Sies said the government continues to focus on driving efficiencies and transparency within the public sector.
PayNet is Malaysia's premier payments network and central infrastructure for financial markets.
Bank Negara Malaysia is PayNet's single largest shareholder, with 11 financial institutions namely Malayan Banking Bhd, RHB Bank Bhd, Public Bank Bhd, CIMB Bank Berhad, AmBank (M) Bhd, Hong Leong Bank Bhd, Affin Bank Bhd, Alliance Bank Malaysia Bhd, Bank Islam Malaysia Bhd, Bank Muamalat Malaysia Bhd and Bank Kerjasama Rakyat Malaysia Bhd, as joint shareholders.