Malaysia’s payment system must be ready for AI-driven purchases

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Malaysia’s AI payment system

Highlights

An AI agent in a Kuala Lumpur pilot successfully booked and paid for a trip using tokenized credentials and biometric authentication, without access to actual card data.
68% of Malaysians interact with AI agents to make purchasing decisions, while the DuitNow QR network is expected to grow to more than three million touchpoints in 2025.
Expanding AI agent payments requires clear liability rules, user record-keeping standards and user controls before widespread operation can be rolled out.

This article was translated from the original. Read the original version by our correspondent here.

Early trial demonstrates AI agent payment capabilities

As reported by The Edge Malaysia, a pilot project in Kuala Lumpur showed an AI agent booking and paying for a trip from Kuala Lumpur International Airport to KL Sentral using tokenized credentials and biometric passkeys to authenticate the user, without accessing the user’s actual card details.

The proof of concept shows that existing security tools can support agent-based payments, in which AI searches for options, selects one based on the user’s preferences and completes the transaction within agreed limits. The same model could also be used for business purchases, including when wholesalers use AI agents to forecast demand, compare regional supplier prices, check credit and cash flow, and then make payments within predefined thresholds.

For these systems to work at scale, merchants need to provide product information, pricing and availability in accurate, machine-readable formats. Payment providers, in turn, need reliable application programming interfaces, robust risk controls and consistent transaction data.

Existing infrastructure boosts potential, while regulation will be decisive

Malaysia already has a strong foundation for expanding this model, including widespread adoption of digital payments and growing use of AI. According to a report by Google, Temasek and Bain & Co, 68% of Malaysians interact with AI agents to compare products, plan trips and solve problems, indicating the highest appetite in Southeast Asia for AI-driven decision-making in 2025.

DuitNow QR has also grown from around 300,000 registered codes in 2019 to more than three million touchpoints in 2025, creating an extensive merchant acceptance network. The country’s digital economy is also projected to reach up to U.S.$70 billion in gross merchandise value by 2030, driven by e-commerce, online travel and digital financial services.

However, AI agent payments need three things before they can operate widely: controlled trials with clear rules on liability, explainability, model verification and dispute handling; shared standards for recording user permissions in a tamper-proof manner; and straightforward user controls for pausing, revoking or changing permissions. Broader adoption will ultimately depend on how well the industry establishes consent, accountability and meaningful user control.

Sovereign AI cloud initiative we previously reported on focuses on the government’s efforts to build a controlled cloud environment to protect official documents and sensitive information from security risks and exposure to foreign laws. It is being led by the Malaysian Communications and Multimedia Commission together with the Ministry of Communications, with an emphasis on the importance of broader and more secure internet coverage—including through Jendela—to strengthen the digital economy and the adoption of technologies such as AI.

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