The Need for ‘E-Wallet’ Specific Legislation

The rise of e-platforms and e-wallets in Fiji has revolutionized financial transactions, offering speed and convenience while promoting financial inclusion. Despite the benefits, it's essential to recognize the potential risks and advocate for robust regulatory frameworks, considering the significant flow of funds through these platforms weekly. Globally, e-wallets have become dominant in e-commerce, with Fiji following suit, particularly during the COVID-19 pandemic, when concerns about cash as a virus vector accelerated the shift towards digital payments. E-wallets have played a vital role in ensuring financial continuity and driving financial inclusion by providing access to financial services for previously unbanked populations.

Challenges and Issues:

Despite the undeniable benefits, the rapid growth of e-wallets has also brought to light potential challenges:

• Security Concerns: The rise in cyberattacks worldwide and phishing scams targeting OTPs (one-time passwords) fuels anxieties about data security and unauthorized access to e-wallet accounts.

• Lack of Consumer Protection: The absence of comprehensive regulations governing e-wallets leaves consumers vulnerable to unfair practices and potential exploitation. This is evident in the CCoF’s data, which reveals over 251 complaints lodged since 2019, with a monetary value exceeding $13,000. These complaints highlight issues such as:

1. Exorbitant Fees: Unregulated withdrawal fees charged by registered and unregistered agents can disproportionately impact consumers, particularly during times of hardship.

2. Minimum Spending Limits: The imposition of minimum spending

requirements by some agents for QR pay services can be restrictive and limit consumer choice.

3. Hidden Charges: Unforeseen service fees charged by agents for QR Pay transactions add unnecessary costs and violate user expectations.

4. E-Wallet Scams: Phishing scams tricking users into sharing OTPs to access “prize money” highlight the need for user education and robust security measures.

5. Limited Agent Availability: The lack of registered agents in rural areas can hinder financial inclusion by limiting access to essential services.

The Case for Regulation: Safeguarding Billions in Transactions

The increasing complexity and volume of e-wallet transactions, with billions of Fijian dollars flowing through the system, necessitate a regulatory framework to ensure a secure, fair, and inclusive digital financial ecosystem. Regulation can address the concerns raised above and provide several key benefits:

• Enhanced Consumer Protection: Clear regulations establishing user rights and outlining fair practices can safeguard consumers from exploitation and unfair charges. This becomes even more crucial considering the significant volumes of money being transacted.

• Stronger Security Measures: Regulatory frameworks can mandate robust security protocols for e-wallet providers, ensuring data protection and minimizing the risk of cyberattacks. This is essential to protect the billions of dollars entrusted to these platforms.

• Promoting Financial Inclusion: Regulations can encourage responsible practices by agents and service providers, ensuring greater accessibility and affordability of e-wallet services for all Fijians. This fosters a more inclusive financial system where everyone can participate in the digital economy, regardless of location or financial background.

• Fostering a Level Playing Field: Clear regulations create a fair and competitive environment for e-wallet providers, ultimately benefiting consumers through innovation and competitive pricing. A healthy and regulated market incentivizes providers to invest in user-friendly features, robust security measures, and competitive fees, leading to a better overall experience for Fijian consumers.