Cashless Payment among Rural Youth in Malaysia: Push Factors and Challenges

Fintech has become deeply embedded in society, enhancing daily life. Among the most utilized fintech services is cashless payment. Despite the benefits of cashless payments, their adoption among rural youth in Malaysia remains insufficient. This study investigates the factors driving and the challenges hindering the use of cashless payments among rural youth in Malaysia. A qualitative method, utilizing structured interviews, was conducted across all states in Malaysia. Thirty-nine in-depth interviews were conducted with rural youth from Perlis, Kedah, Perak, Pulau Pinang, Selangor, Negeri Sembilan, Melaka, Johor, Pahang, Terengganu, Kelantan, Sabah, and Sarawak. Most interviews were conducted face-to-face, with some online due to geographical constraints. The study identified inadequate infrastructure, limited cashless transaction operators, and a lack of digital literacy as primary barriers. Despite these obstacles, rural youths were highly optimistic about adopting cashless transactions, indicating their potential to engage actively in the digital economy and contribute to financial inclusion initiatives. The findings significantly aid policymakers, financial institutions, and community leaders in formulating strategies to promote digital acceptance in rural areas. This study also enhances the current body of knowledge by offering a deeper understanding of the factors influencing digital payment adoption in rural areas.