From pasar malam stalls to luxury brands, the beep of a phone scan has become the new sound of Malaysian transactions. E-Wallets are a concept that Malaysians have been growing accustomed to ever since Covid-19 went viral. Rather than using physical cash to pay, contactless payment methods have become increasingly popular. What started as a foreign action of taking out your phone and scanning a QR code to pay has now become the most convenient practice to make payments.
To encourage the use of contactless payment during the height of Covid-19, the Malaysian government took initiatives such as eBelia and eTunai Rakyat. Their initiatives yielded positive results as Nimble reports that a study found 88% of Malaysians use e-wallets, a notable increase from 63% in 2023.
The convenience factor of e-wallets allows instant transfers to be made from your mobile phone without needing cash or card. This means that you don’t even have to bring your bulky wallet out or look for the closest ATM machine to withdraw money from. Some of the most commonly used e-wallet platforms used by Malaysians are Touch ‘n Go, MAE, GrabPay, Boost, and ShopeePay, according to Ecommpay.
However, this ease of payment might be the cause of a change in spending habits among Malaysians. Buying a piece of fried chicken from a roadside vendor would have required cash in the past, but now even small vendors embrace contactless payment.
E-commerce platforms like Shopee, Lazada, and Grab, have risen in popularity, also adopting the e-wallet options. This makes it easier for users to simply add to cart and tap to pay. Additionally, many e-wallets and online shopping platforms offer various vouchers and cashback, incentivizing users to purchase more. The Decision Lab suggests that we are more likely to spend freely when our money exists in a digital form, often making purchases we might have hesitated to if we were to hand over physical cash.
While e-wallets offer a quick and convenient way to pay, it can also lead to impulse buying and overspending. Moreover, there is a risk of the older generation in rural areas being left behind due to a lack of digital literacy or smartphone access in this cashless wave.
As Malaysia continues to grow towards a cashless economy, we have to ensure that this transition is inclusive. The key to making sure Malaysians of all ages and locations can benefit from this development is through digital financial education initiatives.
Rayna Leong is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
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