E-Wallet As Payment Method In Malaysia ICT 400
E-WALLETUSINGASPAYMENT MethodIn MALAYSIA ICT 400 Authors: -Abdul Aziz -Mohd Nadzirin -Eryca -Muhd Syariful
ALL RIGHTS RESERVED. THIS PUBLICATION IS PROTECTED BY COPYRIGHT AND PERMISSION SHOULD BE OBTAINED FROM THE PUBLISHER PRIOR TO ANY PROHIBITED REPRODUCTION, STORAGE IN A RETRIEVAL SYSTEM, OR TRANSMISSIONINANYFORM ORBYANY MEANS, ELECTRONIC, MECHANICAL, PHOTOCOPYING, RECORDING, OR LIKEWISE. COPYRIGHT © 2023 BY UNIVERSITITEKNOLOGI MARA.ALLRIGHTSRESERVED. FIRST PUBLISHED 2023
THIS WORK IS A FRUIT OF COUNTLESS AND ARDUOUS SACRIFICES. THROUGH THE RESEARCHERS’ EFFORT, THIS WORK IS HEARTILY AND PROUDLY DEDICATED TO THE WORKER WHO SERVE AND MADE E-WALLET SYSTEM WHOM EXTENDED THEIR HELP IN THE MIDST OF PROBLEMS WHILE DOING THIS WORK. WITHOUT THEM, THIS TECHNOLOGY WON'T EXIST IN MALAYSIA i DEDICATION THE RESEARCHERS
TABLE OF CONTENTS HISTORY OF E-WALLET IN MALAYSIA TYPE OF E-WALLET ADVANTAGES OF USING E-WALLET DISADVANTAGES OF USING E-WALLET DEDICATION FOREWORD PREFACE ACKNOWLEDGMENT INTRODUCTION LIST OF FIGURES AFTERWORD CONCLUSION POSTSCRIPT APPENDIX BIBLIOGRAPHY PAGE i ii iii iv v vi 1 3 4 5 6 7 8 9 10
MALAYSIA HAS EXPERIENCED A TREMENDOUS UPTAKE IN THE USAGE OF DIGITAL PAYMENTS FOR GOODS AND SERVICES, ESPECIALLY FOR ECOMMERCE TRANSACTIONS BOTH IN URBAN AND SECONDARY CITIES DURING THE COVID-19 PANDEMIC. THE GROWING ADOPTION OF DIGITAL PAYMENTS, PARTICULARLY MOBILE WALLETS, HAS LARGELY BEEN SPURRED BY ATTRACTIVE INCENTIVES. WHILE DIGITAL PAYMENTS ARE EXPECTED TO CONTINUE TO GROW SIGNIFICANTLY, THE MARKET IS CURRENTLY FRAGMENTED WITH MORE THAN 40 E-WALLET LICENSED OPERATORS SERVING A SMALL POPULATION OF 32 MILLION TO ENCOURAGE PEOPLE TO USE E-WALLET BY GIVING THE BEST EXPLANATION ABOUT THE BENEFIT OF THIS SYSTEM. THE CONTENT OF THE BOOK ALSO FOCUSED ON DISADVANTAGES OF E-WALLET THAT WILL PREPARE WHAT WORSE COME TO YOU. I WOULD LIKE TO TAKE THIS OPPORTUNITY TO CONGRATULATE EWALLET IN MALAYSIA TEAM FOR PRODUCING THIS BOOK TO EDUCATE PEOPLE ON KNOWING THIS TECHNOLOGY. IT IS MY HOPE THAT THIS BOOK WILL BECOME USEFUL TO THE PUBLIC FOREWORD ii
T H I S B O O K I S A B O U T T H E K N OWLE D G E O F E-WA L LET I N M A L A Y S I A . T H E B O O K B E G I N WI T H H I S T O R Y O F E-WA L LET I N M A L A Y S I A F O L L OW B Y T YPE O F EWA L LET . T H I R D C H A PTE R EXPL A I N T H E B E N EF I T O F U S I N G E-WA L LET . T H E C O N TE N T O F T H E B O O K E N D WI T H T H E D I S A D V A N T A G ES O F U S I N G E-WA L LET P R EF A CE iii
On behalf of the COLLEGE OF COMPUTING, INFORMATICS AND MEDIA, UITM SHAH ALAM, we would like to extend our application to everyone that involved in the completion of this book, E-Wallet In Malaysia. This book owes its success to the talents, dedication and unwavering commitment of each writing team, design team technical and support staf. The publication of this book is also the result of the fervor and effort shown by the writing team. Director of E-Wallet In Malaysia ACKNOWLEDGEMENT iv
INTRODUCTION THE OBJECTIVE E-WALLET IN MALAYSIA The objective of the book is to spread the knowledge E-Wallet In Malaysia E-WALLET IN MALAYSIA COMPONENT The component of this book are the explanation system of E-Wallet . Next, the pros n cons of E-Wallet. The explanation divides into two parts which are the history of E-Wallet In Malaysia and the type of E-Wallet. v
A digital wallet is an online payment tool or software application that serves as an electronic version of a physical wallet. Also known as an electronic wallet, ewallet or mobile wallet, it enables users to securely store digital versions of payment methods such as credit and debit cards, gift cards, boarding passes & event tickets, to use on the go with their smartphones. What Is E-Wallet? vi
LIST OF FIGURES FIGURE CAPTION PAGE vii 1 2 3 4 1 2 3 3 E-WALLET LANDSCAPE IN MALAYSIA E-WALLET USAGE IN SOUTHEAST ASIA BOOST E-WALLET TOUCH N GO E-WALLET 5 GRAB PAY 3 6 MALAYSIAN CONSUMERS USED E-WALLETS FOR THE FOLLOWING CATEGORIES (IN Q3, 2020). 9 7 THE TRANSACTION OF ELECTRONIC PAYMENT FROM JAN 2016 TO NOV 2021 9
THE ADOPTION OF CASHLESS TRANSACTIONS IS BECOMING MORE PREVALENT IN MALAYSIA AS ADVANCEMENT OF TECHNOLOGY AND DIGITAL WORLD HELP TO DRIVE THE EVOLUTION OF MONEY, AND THE EMERGENCE OF COVID-19 FURTHER DRIVES THE GROWTH. FIGURE 1: E-WALLET LANDSCAPE IN MALAYSIA SEEING THE INCREASING DEMAND FOR DIGITAL PAYMENT SOLUTIONS IN MALAYSIA, MORE AND MORE DIGITAL WALLET PROVIDERS ARE NOW OFFERING INNOVATIVE SOLUTIONS IN THE MARKET. THESE ALL TRENDS WILL HELP YOU DEVELOP EWALLET APP. HISTORY OF E-WALLET IN MALAYSIA 1
FIGURE 2: E-WALLET USAGE IN SOUTHEAST ASIA A STUDY BY MASTERCARD IN 2020 REVEALED THAT MALAYSIA IS LEADING ITS SOUTHEAST ASIAN (SEA) NEIGHBORING COUNTRIES IN TERMS OF USAGE OF DIGITAL WALLETS. THE STUDY ALSO FOUND THAT THE USE OF E-WALLETS IN MALAYSIA IS AT 40 PERCENT, FOLLOWED BY THE PHILIPPINES AT 36 PERCENT, THAILAND AT 27%, AND SINGAPORE AT 26%. MASTERCARD GATHERED DATA FROM 10,000 CONSUMERS ACROSS THE ASIA PACIFIC REGION. 2
TYPE OF EWALLET FIGURE 3: BOOST EWALLET WITH AN 18 PERCENT MARKET SHARE, BOOST IS THE TOP E-WALLET IN THE MALAYSIAN MARKET. BOOST IS AN AWARDWINNING LIFESTYLE E-WALLET, WHICH WAS LAUNCHED IN 2017 BY AXIATA GROUP BERHAD, A TELECOMMUNICATIONS GIANT IN MALAYSIA. THE E-WALLET HAS PARTNERED WITH 17 BANKS, INCLUDING MAYBANK, RHB BANK, CIMB, HONG LEONG BANK, PUBLIC BANK, AND MANY OTHERS. ALSO THIS IS ONE OF THE FIRST EWALET IN MALAYSIA. FIGURE 4: TOUCH N GO E-WALLET LAUNCHED BY CHINA’S ANT GROUP AND MALAYSIA’S COMMERCE INTERNATIONAL MERCHANT BANKERS (CIMB), TOUCH ‘N GO (TNG) IS IN TALKS WITH INVESTORS TO RAISE $150 MILLION TO FUND EXPANSION PLANS. THE E-WALLET WAS LAUNCHED IN JULY 2017 AS A JOINT VENTURE BETWEEN TOUCH ‘N GO AND ANT FINANCIAL. TNG ALLOWS USERS TO PAY AT OVER 280,000 MERCHANT TOUCH POINTS VIA QR CODES. THE WALLET USERS CAN PAY FOR TOLLS, STREET PARKING, CARSHARING APPS, AND TAXIS VIA RFID; AND EVEN TOP-UP THEIR PREPAID PHONES. FIGURE 5: GRAB PAY DUE TO THE GRAB PLATFORM ECOSYSTEM, GRABPAY HAS AN ADVANTAGE OVER OTHER TRENDING EWALLETS IN MALAYSIA. THE E-WALLET ALLOWS USERS TO PAY WHILE ORDERING FOOD, PAYING FOR RIDES, SHOPPING FOR GROCERIES AND GOODS, OR TRANSFERRING GRABPAY CREDITS. EACH GRABPAY TRANSACTION EARNS USERS REWARD POINTS THAT THEY CAN REDEEM FOR DEALS OR FOR THEIR FUTURE PURCHASES. 3
Advantages of Using E-Wallet AN EASY AND SIMPLE ONLINE SHOPPING EXPERIENCE 1. YOU CAN REDUCE THE NUMBER OF CARDS YOU NEED TO CARRY BY USING AN E-WALLET. YOU CAN TAKE ADVANTAGE OF A QUICK AND EASY PURCHASING PROCESS BY LINKING TOGETHER THE NECESSARY ACCOUNTS. 2. DECENT SECURITY MANY PEOPLE HAVE MISPLACED OR EVEN HAD CREDIT CARDS STOLEN. THE USE OF E-WALLETS REDUCES THE RISK OF FRAUD THANKS TO THEIR ROBUST ENCRYPTION AND PASSWORD SECURITY. BECAUSE OF THIS, EVEN IF SOMEONE STEALS YOUR PHONE, YOUR DATA AND MONEY ARE SAFER THAN EVER. 3. RECEIVE BENEFITS OR REWARDS THERE ARE NUMEROUS INCENTIVE AND REWARD SYSTEMS FOR ELECTRONIC WALLETS. DISCOUNTS MIGHT BE AVAILABLE FOR SOME PURCHASES, LIKE THOSE FOR FOOD, TRAVEL, OR FUEL. OTHER EWALLETS PROVIDE POINT SYSTEMS THAT CAN BE USED TO CONVERT POINTS TO CASH. 4
2. STRUGGLES IN BUDGETING 2. THERE MIGHT BE CHARGES WITH AN E-WALLET Disadvantages of Using E-Wallet E-WALLET MIGHT NOT BE COMPATIBLE OR ACCEPTED EVERYWHERE. 1. NOT EVERY COMPANY OR ONLINE RETAILER ACCEPTS EVERY TYPE OF DIGITAL WALLET PAYMENT. AS A RESULT, YOU MIGHT NEED TO PAY CASH OR FIND ANOTHER OPTION. SOMETIMES PEOPLE HAVE TROUBLE CONTROLLING THEIR SPENDING BECAUSE THEY DON'T KNOW HOW TO SAVE OR CREATE A BUDGET. E-WALLETS ARE MADE TO PROVIDE QUICK AND SIMPLE TRANSACTIONS. EVEN THOUGH THIS IS NOT A DRAWBACK IN AND OF ITSELF, PEOPLE WITH POOR BUDGETING SKILLS MIGHT SPEND MORE MONEY. WHEN YOU TRANSFER MONEY FROM AN EWALLET TO A LOCAL BANK ACCOUNT, THERE MAY BE A WITHDRAWAL FEE. 5
AFTERWORD Like people always said, modern problem required modern solution. When covid-19 struck in Malaysia, EWallethadbeenpivotal toMalaysia’s financialservicesindustry. Various E-Wallet apps can be use in Malaysia from each bank account you had like Maybank QR Pay,Bank Islam DuitNow QR and many more thateasyforyoutochoose. AUTHOR OF E-WALLET IN MALAYSIA 6
CONCLUSION In the nutshell, E-Wallet can ease your life but sometimes need your knowledge to prepare in any kind of situation. Having loads of money doesn't make you better person, spending it smart does. 7
POSTSCRIPT E-wallet or not, You decide what apps that suit for you. Next, identify the good and bad about this technology. Lastly, spending it smart. AUTHOR OF E-WALLET IN MALAYSIA 8
APPENDIX Figure 6: Malaysian consumers used e-wallets for the following categories (in Q3, 2020). Source: Nimble Apss Genie, Jermaine Trotman [2021] Figure 7: The transaction of Electronic Payment from Jan 2016 to Nov 2021 Source: theedgemarket, Sulhi Khalid [January 2022] 9
Bibliography January 06, Sulhi Khalid / theedgemarkets com, [2022]. "E-Money Transactions in Nov 2021 Highest in Five Years." The edge Markets, 6 Jan. 2022, www.theedgemarkets.com/article/emoney-transactionsnov-2020-highest-five-years. Genie, Nimble App, and Jermaine Trotman. "What Are the E-Wallet Trends in Malaysia?" Nimbleappgenie, 5 Feb. 2021, https://www.nimbleappgenie.com/blogs/e-wallet-trends-inmalaysia/#:~:text=The%20e%2Dwallet%20was%20launched,top%2Du p%20their%20prepaid%20phones. Tan, Jacie. "Mastercard: Malaysia Has Highest Mobile Wallet Usage in Southeast Asia." RinggitPlus, 25 June 2020, https://ringgitplus.com/en/blog/e-wallet/mastercard-malaysia-hashighest-mobile-wallet-usage-in-southeastasia.html#:~:text=The%20Mastercard%20Impact%20Study%202020, %2C%20and%20Singapore%20at%2026%25. Skrill. (2022, January 11). Five advantages of digital wallets. skrill.com. https://www.skrill.com/en/skrill-news/five-benefits-of-e-wallets/ The Pros & Cons of Digital Wallets. (2021, December 16). NASSCOM Community | the Official Community of Indian IT Industry. https://community.nasscom.in/communities/digital-transformation/proscons-digital-wallets 10