Education and accessibility are key for e-wallet adoption

CONTENT creator L. Suganya, 33, is an avid user of e-wallets and is subscribed to three providers.

“I use e-wallets for pretty much everything – groceries, food, coffee, Touch ‘n Go. I use it whenever I can get points,” she says.

Suganya also makes a conscious choice to shop at places which accept contactless payment, either cards or e-wallets, as she prefers not to carry cash.

But recently when travelling out of Kuala Lumpur, Suganya had to borrow money from some of her friends because the place she visited did not have good internet connection.

“I paid them back immediately afterwards when we had internet!,” she says.

“I hope that e-wallets can be available everywhere across the country. In the Klang Valley, you can use contactless payments even in small shops but it is not as widely available outside Klang Valley.”

Teacher Nor Melati, 32, is a self-confessed digital currency fan and finds many unexpected benefits to going cashless.

E-wallets can be used as an educational tool by parents who wish to teach their children about personal finance, says Nor Melati, who also teaches her students how to effectively use e-wallets to track expenses in her Business Studies class.

“I have a few students whose parents give them allowance through e-wallets. Parents can monitor their child’s expenses and since the system can be automated, it is also convenient, at least in urban societies ” she says.

Nor Melati points out that e-wallets can also help people without bank accounts, or people without the ability to even start bank accounts like stateless individual or teenagers.

“This way you are empowering people and the economy,” she says.

Moving forward, Nor Melati believes that people have to learn to trust digital payments. To have a change of mindset, education needs to happen from home and at schools.

“There needs to be more awareness on the safety and security of contactless payments. My parents are a bit skeptical if they do not see the actual physical cash transaction happening. It doesn’t always go by age either as some people are digitally adverse,” she explains.

“Some new entrepreneurs don’t go cashless because they don’t know how. When this happens, they lose out on potential customers,” she adds.

There is also room for improvements on the e-wallet side, says Nor Melati.

“Make the interface more accessible so digitally adverse people will be more accepting of it. Some users may get intimidated when the screen looks too complicated,” she says.

“App designers really need to go on the ground, see the target groups that they are not reaching and design the app with them in mind.

“The onus is on the e-wallet provider to ask users what do they really want, because at the end of the day the providers are the one driving the change.”

Public relations executive Charles Lee, 29, has installed all the three biggest e-wallet providers but still prefers to make cash payments.

“I have applied for eTunai and ePenjana but my e-transactions are mainly for petrol and toll payments,” he says.

Lee says he is better at keeping tabs of his expenses when dealing with cash – when he can physically see his money moving.

“If while out shopping I suddenly realise I do not have enough cash, then I will use my e-wallet,” he says.

Acknowledging that many others

around him have moved to e-wallets, Lee says that a good way to entice paper money purists such as him is to provide more cash rebates.

Retiree Lim Ping Sim, 57, regularly uses one e-wallet, provided by a large shopping retailer.

“They offered an upgrade from a normal membership card to an e-wallet a year ago. The e-wallet feature gives double points so that attracted me,” she says.

“My reasons for using e-wallets are quite straightforward. I do my grocery shopping once a week and it was a no-brainer to upgrade my membership card to an e-wallet. I now get points straight away and don’t have to dig in my bag for cash. I find it very convenient,” she says.

“I have been using online banking for the longest time so it is not an issue for me. I am quite up to date with technology but I know that many older people are afraid to make the change because they are worried about the security of their personal details,” she says, explaining that the systems are safe but users have to be careful when doing any online transactions to avoid fraud.

In terms of improvement, Lim suggests that more information be made available to make it easier for the public to switch from cash payments. She also pointed out that not all merchants accept all e-wallets, which can be a hassle for a person to have multiple e-wallet accounts.

Malaysians need to be well educated on financial knowledge if we are to morph into a cashless society, says Universiti Sains Malaysia (USM) economist Dr Loke Yiing Jia.

“Even as a whole, Malaysians are struggling with low financial literacy. Now we will be adding a new element of digital finance literacy.

A lot of consumer education needs to be taken into account,” she says.

However, once consumers have a good grasp of digital financial literacy, it will actually help them manage their finances better as digital payments systems make financial management and record keeping easier.

Covid-19 has especially helped small time retailers embrace eWallets, says Loke, who points out sellers at wet markets who now accept digital payments.

Loke sees the eTunai and ePenjana as a positive move, particularly since having government support for e-wallets helps consumers feel more secure about using new technology.

“I’m very supportive of cashless payments. For me it is convenient and it helps with my financial management,” says Loke, who adds that the key is to build trust in digital financial services.