On Device Research has recently published an interesting report on Mobile Malaysia: ahead of the pack. The report helps us to understand the mobile landscape in Malaysia, especially the smartphone trend, and how it implies to mobile commerce and mobile payment.
To our surprise (and possibly yours too), Malaysia fares better in mobile landscape compared to most Southeast Asia countries, and even United States!
Key statistics of mobile users in Malaysia
First of all, let’s go through some of the key indicators of internet and mobile landscape in Malaysia:
According to World Bank, Malaysia, with 140 per cent mobile penetration, is leading Indonesia, Thailand and even United States! Only Singapore and Vietnam in Southeast Asia have higher mobile penetration than Malaysia.
Our earlier report shows 27 per cent smartphone penetration, but the latest data stands at 35 per cent, which means there are more than 10 million smartphone users in Malaysia. McCann even predicted that smartphone penetration in Malaysia will rise to 60 per cent by 2015.
On Device Research has also presented a breakdown of smartphone OS in Malaysia, with Android leading with 65 per cent, followed by iOS and Windows.
Due to the fact that three major mobile carriers in Malaysia are competing with each other in customer acquisition, affordable smartphone plans are the major factors contributing to the smartphone adoption.
Mobile commerce in Malaysia
According to Nielsen and PayPal Analysis, e-commerce market size in Malaysia was supposed to be RM 3.65 billion in 2013, including the transactions of both, services and products. If we refer to Euromonitor’s report, RM 1.24 billion (or 34 per cent of PayPal’s report) are products-only transactions.
Nielsen-PayPal reported RM 1.82 billion of mobile commerce in 2013, which represents close to 50 per cent of total e-commerce market size. Interestingly, mobile share of online commerce was only 5.5 per cent as recent as 2010, and it is projected to reach 59.6 per cent in 2015.
Next, what do Malaysians purchase on their mobile devices?
As expected, movie tickets are the main driver for smartphone purchases followed by fashion and accessories, while airline tickets are the most popular items Malaysians purchase on tablets.
Since movie tickets are the most popular items Malaysians buy on smartphone, let’s take a look at what kind of mobile payment methods accepted by the leading cinema in Malaysia – GSC.
If you refer to the screenshot above, GSC only accepts M2U, RHB (both online banking) and PayPal. We personally think PayPal provides the best user experience in m-payment, as compared to online banking which requires Transaction Authorisation Code (TAC).