This study aims to explore and analyze consumer preferences between mobile wallets and point-of-sale (POS) terminals in the Malaysian market. With the growing trend of digital payments, understanding the factors influencing consumers’ choices between these two payment methods is crucial for businesses and policymakers. Through a comprehensive survey and analysis, this research examines the factors that drive consumer adoption of mobile wallets and POS terminals, including convenience, security, acceptance, and familiarity. The findings contribute to the understanding of the evolving payment landscape in Malaysia and offer insights into tailoring strategies for businesses in the financial technology sector.



In recent years, Malaysia has witnessed a significant shift towards digital payment methods, driven by technological advancements and changing consumer behaviours. Among the prominent digital payment options are mobile wallets and point-of-sale (POS) terminals. Mobile wallets allow users to make payments using their smartphones, while POS terminals facilitate card-based transactions. This study seeks to identify the factors that influence consumer preferences between these two payment methods, providing valuable insights into the evolving payment ecosystem in Malaysia.


Literature Review

Prior research has highlighted various factors influencing consumers’ choice of payment methods, including convenience, security, acceptance, and familiarity. Mobile wallets offer convenience through quick and easy transactions, while POS terminals provide a seamless experience at physical retail outlets. Security concerns, however, remain a potential barrier for mobile wallet adoption. Additionally, the acceptance of payment methods by merchants and the familiarity of consumers with the technology play crucial roles in shaping their preferences.



A mixed-methods approach was employed for this study. A structured questionnaire was administered to a diverse sample of Malaysian consumers, encompassing various age groups, income levels, and geographic locations. The survey collected data on consumer preferences, usage patterns, and perceptions of mobile wallets and POS terminals. Quantitative data analysis, including descriptive statistics and regression analysis, was conducted to identify significant factors affecting consumer preferences.



Preliminary analysis suggests that convenience is a primary driver for the adoption of both mobile wallets and POS terminals. However, security concerns emerged as a significant factor affecting mobile wallet adoption. Consumers expressed varying levels of trust in the security measures implemented by mobile wallet providers. The acceptance of payment methods by merchants was found to strongly influence consumer choices, highlighting the importance of a widespread and accessible infrastructure for digital payments.



The findings underscore the need for mobile wallet providers to address security concerns through robust encryption and authentication mechanisms. Enhancing consumer trust in the security of mobile wallets could potentially accelerate adoption. Furthermore, collaborations between financial institutions and merchants are crucial to ensure widespread acceptance of both mobile wallets and POS terminals.



This study contributes to the understanding of consumer preferences between mobile wallets and POS terminals in the Malaysian market. By identifying factors such as convenience, security, acceptance, and familiarity, businesses and policymakers can tailor their strategies to encourage wider adoption of digital payment methods. As Malaysia continues its transition towards a cashless society, addressing security concerns and expanding the acceptance infrastructure will play pivotal roles in shaping the future of digital payments.