Although they acknowledge the convenience of using an app or installing e-wallets on their phones, they are sceptical about the security of such payment methods.
Eliza Ismail, 34, said she was concerned about submitting personal details such as banking data when using mobile apps.
“I am afraid I will face the risk of technical glitches or the system going down,” she said.
“I do not want such risks, which is why I would rather use cash or my debit card, not the apps.”
Given a choice, though, she still prefers to use cash.
“For me, it’s cash,” she told FMT. “Even if I go cashless, I still need to top up the amount.
“Also, I need to keep track of the balance I have, even when it is more convenient because the apps on the mobile phones are used for payment.”
For Daniel Chow, 30, it does not matter whether he goes cashless – at the end of the day, he says, it is still money spent.
As for using cashless payment options, he adds, it all boils down to convenience or the benefits that can be derived.
“In general, if you make use of cashless modes which, in return, give you rebates or offers, or if you are too lazy to leave the house or don’t want to withdraw money from the ATM, I guess that it is a benefit,” he said.
He recalled an experience in Singapore where one of his friends was too lazy to install the FavePay app on her phone.
“Because she was lazy to log in and set up the account and the payment method, she lost out on the rebate that she could have gotten.
“It was not much,” he added. “Probably 6-7%. But a while later, after setting up the account, she started to benefit from there.”
But even given the convenience and benefits of cashless payment, he said, it is still important to carry around some cash in case of emergencies.
“If you get into a minor accident and, say, you scratch someone’s car, you may be able to settle it then and there for between RM50 and RM100, maybe.”
In general, he added, not all mamaks and food stalls accept cashless payments either.
For him, going cashless or not is a matter of lifestyle.
“If I shop at, say, hypermarkets instead of the morning market, I can go cashless. Similarly, if I dine at restaurants or places where they only accept cashless payments, then I technically do not need cash,” he said.
However, he does not subscribe to the e-wallet mode of payment unless he thinks he will use it often enough or if he will benefit from good discounts.
“You are basically putting money into that company for them to do whatever they want with.”
Recent reports said Malaysia is still a long way from transitioning into a cashless society, mainly due to the spending habits of those who prefer to pay by cash.
Payments Network Malaysia Sdn Bhd group CEO Peter Schiesser estimated that Malaysia would only become a cashless society in 20 years.
“In the digital era, it is very expensive for a country to print cash or for retailers to handle cash,” he said on the sidelines of a recent media briefing on Malaysia’s payments ecosystem.
For Melanie Chan, 35, the range of cashless payment modes only opens up more options.
She still keeps cash on hand but would immediately opt for cashless payment modes if they are available.
“Such payment modes are really convenient,” she said, citing Maybank’s QRPay, GrabPay, FavePay, Boost and the Touch n Go e-wallet as examples.
“Of course, using such modes does not mean I do not carry cash around with me. I still do. But I would rather use digital payment methods.”
She said e-wallets were especially convenient if she happened to be low on cash.
“I don’t have to withdraw money from the ATM so often. I do have to keep track of the balance I have in those apps, but that is just a minor inconvenience.”