The Retail Digitalisation Initiative (ReDI), spearheaded by Malaysia’s Ministry of Domestic Trade and Cost of Living, is a national program promoting digital inclusion and empowering rural micro-retailers to participate in the digital economy. Launched in April 2021, ReDI bridges the rural-urban digital divide by enabling small retailers to adopt cashless payment solutions, particularly e-wallets and DuitNow QR, Malaysia’s interoperable national QR payment platform.

ReDI adopts a whole-of-government and multi-stakeholder approach, bringing together Bank Negara Malaysia, Payments Network Malaysia (PayNet), local authorities, financial institutions and e-wallet providers. Through digital advocacy, merchant onboarding programs and targeted incentives, the initiative reduces barriers to digital adoption among rural businesses.

The program has delivered significant impact. Initially targeting 15,000 rural retailers by 2025, ReDI has already enabled 26,531 merchants to adopt cashless payments. In rural tourism areas such as Redang Island, more than 90% of businesses now accept digital payments, contributing to 98% nationwide consumer satisfaction.

ReDI strengthens rural economic resilience by lowering cash-handling costs, expanding business opportunities and enabling cross-border QR payments across ASEAN. The initiative supports WSIS Action Lines on Capacity Building and e-Business, while contributing to the SDGs, particularly inclusive economic growth, reduced inequalities and partnerships. Its collaborative and scalable model offers a replicable blueprint for rural digital transformation worldwide.

https://eredi.kpdn.gov.my/

• Malaysia

• Remote and rural communities

The ReDI project is highly replicable across different regions, having already gained acceptance across various states and local councils in Malaysia. It is highly adaptable to diverse retail environments, including rural locations, restaurants, food courts, wet/night markets, wholesale stores, and specialty shops. Regionally, its model of using universal QR codes is being expanded for cross-border transactions across ASEAN economies—including Indonesia, Thailand, Singapore, and Cambodia as well as China and South Korea.

The project's replication strategy relies on a multi-stakeholder partnership model uniting the government, central banks, and private e-wallet providers. Execution is driven by a clear onboarding mechanism that can be duplicated elsewhere collecting merchant data, offering free unified DuitNow QR codes, providing government monetary incentives, and conducting continuous virtual and physical advocacy programs to drive adoption.

The project achieves long-term sustainability economically, technologically, and environmentally. Economically, the initiative reduces cash handling costs, helps merchants manage finances and inventory more efficiently, and opens up new avenues for business expansion. Technologically, ReDI ensures future relevance by evolving e-wallets beyond simple payment tools into comprehensive platforms for broader financial services, lifestyle integration, and digital identity.

Environmentally, the project aims for a "Sustainable Digital Environment" by utilizing digital technologies that promote responsible consumption, minimize environmental impacts, and support ecological well-being. Furthermore, its institutional sustainability is guaranteed through its integration into national policies like the Twelfth Malaysia Plan (2021-2025) and the MyDIGITAL Blueprint.

ReDI champions the core WSIS values of digital inclusivity and bridging the digital divide by targeting rural communities that are often left behind in digital transformations. It actively fulfills the objective of creating an inclusive digital society by empowering small, rural retailers to integrate ICTs into their daily business operations. Additionally, ReDI exemplifies the WSIS value of multi-stakeholder cooperation by employing a "whole-of-government" approach that brings together public authorities, the Central Bank, PayNet, and various private e-wallet providers. The profound impact of these inclusive values is demonstrated by localized success stories, such as in rural Redang Island, where over 90% of merchants now accept e-payments, contributing to an outstanding 98% nationwide consumer satisfaction rate.