The Malaysian Insight

E-WALLETS are slowly gaining traction as a preferred mode of cashless payment among consumers concerned about safety, and even among retailers, including roadside food stall operators.

The convenience of not carrying cash or counting small change is behind the rise in e-wallet use, figures from market research firm Oppotus show.

In a recent survey, it found that shoppers are beginning to use more e-wallet apps, from 1.9 per consumer in the fourth quarter of last year, to 2.6 in the first quarter of 2019.

The most popular apps in use between January and March this year are Boost, followed by Touch ’n Go, BigPay, MaybankPay, Samsung Pay, FavePay and GrabPay, Oppotus’ study found.

Topping the most frequently purchased items is food at 71%, followed by groceries at 57%. Consumers also used such apps to pay bills (48%).

Shoppers met by The Malaysian Insight said they have turned to cashless payment after getting mugged or losing and misplacing their wallets.

Bank officer Mustaqim Mustapha, 24 said he is a fan of e-wallets and uses several applications.

“I don’t carry a lot of cash on me any more since I lost my wallet to a pickpocket. I feel this is safer,” he said.

Aina Syakira Rosman, 23, who works in a private firm, said she likes e-wallets for their convenience and safety.

“You just have to scan (the app). I don’t carry a lot of cash as I was a victim of snatch theft,” she said when met at the Jalan Raja Alang Ramadan bazaar in Kuala Lumpur.

The Jalan Raja Alang Ramadan bazaar is among several markets that accepts e-payments, in this case, using the Touch ’n Go e-wallet app. About 400 stalls here accept payment with the app.

Among Ramadan bazaars, Touch ’n Go is the pioneer in e-payments, with a pilot run at the Taman Tun Dr Ismail Ramadan bazaar last year.

This year, under the Kampung Kashless programme, it has expanded to include other bazaars at Jalan Raja Muda Musa and Jalan Raja Eda in Kg Baru, Kuala Lumpur, besides Jalan Raja Alang.

Shoppers using an e-wallet only need to scan a QR code provided by the merchant to complete the transaction.

Najwa Khairuddin, 24, said she likes uses the app for discounts, promotions and cashback offers.

“There’s a lot that can be bought. It’s easy to use and there are promotions sometimes. The prices are quite cheap,” said the student.

Two stall owners said they found transactions using e-wallets easier to handle. A majority of their customers also preferred using the app.

“Six out of 10 customers use e-wallets. It’s fast and easy and we don’t have to return any change,” said roti boom seller Mohd Agil Mohamad Faisal at the Jalan Raja Alang bazaar.

Mango juice seller Asmawiyah Mohamad Mahfod, 36, said she herself encouraged her customers to pay with e-wallets.

“I feel safer instead of having hard cash with me as I work,” she said.

Touch ’n Go Digital CEO Syahrunizam Samsudin said the use of e-wallet is gaining traction among businesses both big and small.

This can be seen in the take-up to the Kampung Kashless programme launched among Ramadan bazaars this year, he told The Malaysian Insight.

“The cashless initiative brings those who live outside of the area to come and shop here. We have to keep improving so as to increase our customers’ faith in the product.”

Despite the increase in e-wallet use, Malaysia’s adoption of such apps is still low.

A Nielsen consumer report released in January found that about 67% Malaysians have used cashless payments but debit and credit card were still the preferred mode.

Only 10% have used e-wallets, despite 88% of the respondents being aware of it.

According to Bank Negara Malaysia, there are currently 40 e-wallet players in the country. – May 20, 2019.