From Readiness to Benefits: How Cashless Transactions Enhance B2C E-Commerce in Malaysia and Beyond.

Sahadah Haji Abdullah; Mohd Syahrir Rahim; Jasni Ahmad

doi:10.36948/ijfmr.2025.v07i06.65083

From Readiness to Benefits: How Cashless Transactions Enhance B2C E-Commerce in Malaysia and Beyond.

Author(s)	Prof. Dr. Sahadah Haji Abdullah, Dr. Mohd Syahrir Rahim, Mr. Jasni Ahmad
Country	Malaysia
Abstract	The recent trend of moving towards cashless economies globally, especially in the wake of the COVID-19, has placed digital payment systems as an essential facilitator of the growth of e-commerce. Malaysia has become a bright example, as the spread of QR-based solutions like DuitNow and the assistance of the regulators (Bank Negara Malaysia, Payments Network Malaysia) has contributed to it. Although this has been given more attention, there is inadequate empirical information on how the dimensions of macro-level readiness, which include infrastructure, institutional frameworks, consumer trust, and firm capabilities, can be transformed into actual business-to-consumer (B2C) e-commerce advantages. The paper constructs a unified model comprising of Diffusion of Innovations (DOI) theory and the Resource-Based View (RBV) in order to examine the readiness-benefits nexus. The study applies a mixed-method design, which entails integrating macro-level indicators (Global Findex 2025, UNCTAD B2C readiness, national regulatory initiatives) with survey data of 400 consumers and 200 B2C e-commerce companies in the retail, food, and fashion sectors in Malaysia. The hypothesized relationships between readiness and trust and adoption and e-commerce outcomes (conversion rate, average order value, and repeat purchases) are tested with the help of structural equation modeling (PLS-SEM). The performance of Malaysia can be compared to the selected southeast Asian and global markets to come up with a benchmark. The results indicate that preparedness is a strong predictor of the adoption of cashless transactions with consumer trust acting as an intermediate between the two. Moreover, conversion and loyalty are greatly improved because of adoption, but the effects are stronger in high-value and international deals. The findings expand DOI and RBV by establishing cashless payment ecosystems as strategic assets that develop both national digital economic development and competitiveness at the firm level. In practice, the research provides policy recommendations regarding enhancing regulatory frameworks and interoperability and company recommendations to focus on payment experience and fraud management. This study has highlighted that the cashless preparedness does not only enable inclusion but also serves as an enabler to long-term B2C e-commerce value creation in Malaysia and elsewhere.
Keywords	Cashless transactions, B2C e-commerce, Malaysia, QR payments, Diffusion of Innovations (DOI), Resource-Based View (RBV), digital readiness, consumer trust, adoption, financial inclusion.
Field	Business Administration
Published In	Volume 7, Issue 6, November-December 2025
Published On	2025-12-31
DOI	https://doi.org/10.36948/ijfmr.2025.v07i06.65083

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From Readiness to Benefits: How Cashless Transactions Enhance B2C E-Commerce in Malaysia and Beyond.

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