The Malaysian e-Wallet Boom

In a 2017 report by ComScore Inc, Malaysian digital users between the ages of 15 and 24 predominantly utilize the Internet through smartphones, while those between 24 and 35 tend to be multi-platform users — including desktop computers and mobile devices.

This year, a torrential boom of online payment transactions is expected and is a phenomenon attributed directly to the implementation of E-Wallet technology. This trend has been blazing forward due to a multitude of  Malaysians switching to cashless payments.

As local commerce giants like Payments Network Malaysia Sdn Bhd begins to introduce real-time retail payment platforms, mobile payments and e-wallets are likely to get the boost required for them to become a successful entity within the country.

Although the success of any e-wallet system depends almost entirely on economies of scale relating to the size of merchants and consumer base, the e-wallet still remains a force to be reckoned with.

At a recent media conference held in Kuala Lumpur, iPay88 Executive Director Chan Kok Long stated  “We expect more than 10 e-wallets to be launched this year. “If one bank launches its own e-wallet system, other banks will follow suit quickly, together with other third-party players”.

But the one thing that most companies agree with is E-Wallet’s potential to be a far safer method of transaction. Because your account details are encrypted when you use e-wallets, your actual account details are never kept on your phone itself. Even when making payments, the cashier you are purchasing from never attains your credit/debit card particulars, but use a random transaction number instead. Whilst the system is still prone to hackers using it to their advantage, the level of security utilized by E-wallet service providers is potentially far greater than that of what most banks currently provide.

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