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Malaysiakini
5 days ago
- Business
- Malaysiakini
More Malaysians use smart tools to buy smarter
Malaysia is leading the region in AI-powered retail adoption, with 58 percent of consumers now using artificial intelligence (AI) tools to enhance their shopping experiences - far ahead of the global average of 37 percent. This is according to the Adyen Retail Report 2025, which surveyed over 41,000 consumers and 14,000 merchants across 28 markets. The findings underscore Malaysia's rapid shift towards intelligent, digital-first retail experiences, where AI tools are helping shoppers make quicker, smarter, and more personalised decisions - from finding outfit ideas to discovering new brands online. 'Malaysia is entering an era where AI acts like a personal stylist or shopping assistant,' said Lee Soon Yean, Country Manager, Malaysia at Adyen, a global financial technology platform for businesses. 'We're seeing a move beyond digital convenience to digital intelligence.' AI-powered retail takes off AI's influence on Malaysian retail is wide-ranging. Among local consumers surveyed, 71 percent said AI sparks ideas for meals, outfits, and purchases faster than anyone else, 69 percent credited AI for introducing them to new brands, and 60 percent are open to making purchases directly through AI interfaces in future. AI adoption is highest among Gen Z (74 percent) and Millennials (65 percent), though older consumers are catching up. Notably, 25 percent of Baby Boomers now report using AI to support purchases - a number that continues to grow. On the business side, Malaysian retailers are actively investing to keep up. 46 percent plan to deploy AI for marketing and sales, 43 percent for product innovation, and another 46 percent to strengthen fraud prevention systems. To support this shift, Adyen recently launched Adyen Uplift, an AI-powered payments optimisation suite that helps businesses detect genuine shoppers, reduce fraud, and improve payment success rates - all using end-to-end payments data across the entire customer journey. The rise of social commerce The retail revolution in Malaysia isn't happening on e-commerce websites alone - it's happening on social media. According to the report, 57 percent of Malaysians shop directly on social platforms, averaging six purchases per month. This includes even Baby Boomers, with 18 percent saying they buy on social media five times a month - slightly more than Gen Z shoppers at 14 percent. Influencer culture and peer recommendations are strong motivators: 52 percent are more likely to buy if a product is recommended by a friend or influencer, 45 percent are swayed by trending products, and 41 percent trust influencer endorsements more than traditional ads. Retailers are responding. 34 percent of Malaysian businesses plan to invest in social commerce this year - the highest rate across Asia-Pacific. The aim: transform social media from a marketing channel into a fully transactional platform, complete with integrated payments, consistent pricing, and real-time inventory, opined Lee (above). With social media emerging as a key shopping channel, the report underscores the importance of meeting consumers where they scroll - and making the path from discovery to checkout as seamless as possible. Online, offline and everything in between Today's Malaysian shopper is not choosing between online and offline - they expect both to work together, smoothly. The report shows: 72 percent of consumers want to move easily between social media, apps, and websites while shopping, 43 percent want promotions tailored to their preferences, and 39 percent would like easier returns and exchanges between channels. Despite the rise of digital, brick-and-mortar retail remains relevant. 57 percent of shoppers want to see and feel products before purchasing, 53 percent enjoy the instant gratification of taking items home immediately. To support these hybrid journeys, 52 percent of Malaysian businesses now offer unified commerce - allowing consumers to, for example, buy online and return in-store, or purchase in-store and ship to home. Another 26 percent plan to introduce this capability in the next year. Checkout remains a critical moment in the shopper's journey: 56 percent of Malaysians will abandon a purchase if the payment process is too slow, 54 percent will leave if their preferred payment method is not offered. Retailers are adapting by: Rolling out one-click purchases and queue-busting tools (58 percent), Enhancing payment speed (53 percent), and Equipping staff with mobile POS and Tap-to-Pay options (31 percent). In terms of payment preferences, digital wallets and online banking now rival credit and debit cards, with Buy Now, Pay Later (BNPL) also seeing growing adoption – 45 percent of businesses already offer BNPL, and the same number plan to expand it. As the report notes, retailers that can connect every touchpoint - online, offline, and social - will be best positioned to deliver the seamless, personalised experiences shoppers now expect. Fraud and trust As online shopping rises, so does concern over fraud. The report reveals: 41 percent of Malaysians experienced some form of payment fraud in the past year - a 16 percent increase from 2024. Younger shoppers are more affected: 65 percent of Gen Z and 61 percent of Millennials have faced fraud, compared to 46 percent of Baby Boomers. Fraud types reported include: Credit card scams (16 percent) Social engineering attacks (14 percent) Identity theft (12 percent) Account takeovers (10 percent) Retailers too are feeling the pressure, reporting average losses of RM6.29 million due to fraud in the past year. Chargebacks alone account for 18 percent of these losses. Yet, shoppers want fraud protection without hassle. Only 24 percent say they appreciate identity checks - and only if they do not slow things down. As a result, 46 percent of Malaysian retailers plan to invest in AI-driven fraud prevention tools. Smart platforms like Adyen's help detect anomalies and confirm genuine users in real time, keeping the process smooth for customers while improving security behind the scenes. With retail channels expanding and new ones emerging, success now hinges on connection - not just with customers, but across every touchpoint. With the right tech stack and a unified view of shopper behaviour, businesses can adapt in real time, personalise smarter, and deliver experiences that feel effortless. The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini. Interested in having your press releases, exclusive interviews, or branded content articles on Malaysiakini? For more information, contact [email protected] or [email protected]
The Star
5 days ago
- Business
- The Star
More local retailers looking to adopt AI
The Adyen Retail Report 2025 noted that 58% of Malaysian consumers have used AI to assist with purchasing. — Reuters KUALA LUMPUR: Malaysian retailers are looking to invest more in artificial intelligence (AI) technology to drive retail performance, according to financial technology company Adyen Malaysia. The Adyen Retail Report 2025 noted that 58% of Malaysian consumers have used AI to assist with purchasing, compared with the global average of 37%. The findings reflect a growing shift in digital consumption habits and expectations for personalised retail experiences. Adyen Malaysia, a provider of end-to-end financial technology solutions, said the trend signals a move from digital convenience to digital intelligence. The company's country manager Soon Yean Lee said that Malaysia is seeing a shift from digital convenience to digital intelligence. 'We are likely entering an era where AI acts as a personal stylist or shopping assistant, curating outfits, surfacing new brands and tailoring suggestions to each individual,' he said during a briefing yesterday about the Adyen Index 2025 Malaysia Report. The report noted that 57% of Malaysian businesses plan to invest in technology that enhances the customer experience, either through new methods to make payments or self-service kiosks. The findings also said that, as part of efforts to boost efficiency and reduce friction, businesses are focusing on revamping the checkout process with features like queue-busting and one-click purchases to improve the experienc for customers. Commenting on AI as a strategic asset, Lee said 'retailers generate large volumes of payments data daily, and AI helps unlock this value to drive conversions at scale'. He added that AI-powered payment optimisation could improve success rates, reduce fraud and help identify genuine shoppers with minimal friction. Meanwhile, the report highlighted the growing importance of 'unified commerce', which is a retail strategy that integrates all sales channels into a cohesive system. At present, 52% of Malaysian businesses surveyed offer unified systems that integrate online and offline sales channels, while another 26% plan to adopt such platforms within the next 12 months. Unified commerce allows businesses to consolidate inventory, pricing and customer data into a single system. Lee added that the approach enables retailers to deliver more consistent service while also improving cost efficiency and operational control. Despite growing interest in digital tools, the report noted that many businesses continue to face challenges with data fragmentation and system integration. It said the effectiveness of AI will depend largely on the quality and connectedness of the data supporting it. The Adyen Retail Report 2025 includes responses from 1,000 consumers and 500 merchants in Malaysia. Adyen is a global financial technology platform that provides payment processing and related financial services for businesses. It acts as a merchant acquirer, offering a single platform for businesses to manage payments across various channels like online, mobile, and point-of-sale. The company is headquartered in Amsterdam and has offices around the world. Beyond Malaysia, the company's Annual Retail Report for this year shows Gen Z is the largest demographic using AI when shopping (57%), but data finds a 63% increase in older people using the technology year-on-year – the biggest increase in users globally. In a poll of 41,000 consumers across 28 countries, more than one in ten (12%) said they had used AI for the first time over the past 12 months to help them with their shopping experience. Additionally, an impressive 55% of people said they would be open to making purchases using AI technology in the future.
