The Development Of E-Wallet in Malaysia

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Human as the smartest species on the earth has kept to demand innovative technology that can push the human life to the next highest level.

In fact, through constantly broken away the constraint, some useful method is created and changing human life. (Matemba & Li, 2018) In light of the disclosures, the handset has developed and found to supplement our methods for communications. In past times, people use the handset for voice and texting word. Nevertheless, the expansion of high-tech skill has allowed each individuals to share the large quantity of data or information over the Internet by using mobile phones.

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The modern world have proofing a smartphones era time, which can installed, such as "apps" (programs and applications), for conducting mobile financial activities (Matemba & Li, 2018). A researcher assumed that a usual cell phone user spends on average about 82% of the phone traffic for mobile application (mobile trading, entertainments and social engagement), and the remaining time is allocate among phoning, reply and send e-mail, and SMS.

(Hsu & Lin, 2015)Hence, some merchants see this opportunity and the invented of e-wallet was born. E-wallet have been catch the attention of consumer in Malaysia in recent years, however the development of e-wallet is slow in Malaysia, the potential to become the mainstream adoption is already can be seen (Rajan, Siew, & Liza, 2017).

The launching of e-wallet is stated can complete people’s daily life without the needs of cash, phone calls, or any physical medium of exchange, but just using their smartphone with embedded e-wallet. (Chan, 2017) Based on the sentence above, the e-wallet is seem as a breakthrough that could bring human life’s quality to the next highest level. Malaysia had been welcomed the three largest e-wallet merchant in last year, which is Boost, WeChat Pay, and Alipay, three of them have corporate as an offline and online partnerships (Rajan et al., 2017).

Besides that, there is having many others e-wallet was launching in Malaysia such as GrabPay, Boost, and Fave Pay. E-wallet have been assume to subvert the traditional payment method and become the future trend of loyalty program. (Duska, 2017) The most remarkable news is WeChat Pay’s entry into Malaysia, because it is the first foreign wallet that launching to other than its own country’s currency. (Pikri, 2018) Based on Fintech Malaysia report, the interviews result shown that Malaysia will presumably stay as one of the few countries that implement WeChat Pay (Fong, 2018).

The launching of certain e-wallet is successfully get a positive resonance in Malaysia, but not all. Too many e-wallet launching is leads some problem, there is a psychologically manifested that too many options could impede adoption. (Piki, 2018) Therefore, the whole research will study the psychological influence of e-wallet to the consumers.

Malaysia is a beautiful country that having multicultural, stable political environment, scenic beauty, rich natural resources, and no serious natural disaster. (“Malaysia Country Profile,” 2016) As this reason, Malaysia has attracted many investors, especially in the technology development, somebody called Malaysia as a “Home” of many high-tech product companies. According to the U.S.News, “Malaysia had achieve rank 34 out of 80 countries in 2017, which having high openness for business and high motive force”. (U.S.News, 2017) Not only that, Malaysia is also a fascinating country for most investor because of the high skilled man power which corporate with a pro-business government. Based on the U.S.News’s statistic shown that Malaysia is achieved top 4 most suitable invest countries (Mays, 2017).

In this age, nearly everybody has one smartphone on their hand regardless of they go any place or do anything. In 2020, the user that adopt the smartphone is estimate to become 23.31 million. (Statista, 2018) The introduction of the smartphone alter the manner in which we impart, play, think, surf the web and more. The case of a single device has the capacity to supplant such a significant number of different things is never happening in the past. (G & F, 2018) A researcher stated that having fifty things that had been replace or have the potential to be replace by smartphone such as camera, scanner, airline ticket and payment method. (G & F, 2018) Among of these things, the payment method is having high probability to be replace by e-wallet in the future of Malaysia. “Before the e-wallet come true as Malaysia’s mainstream, it is just a matter of time” stated by KPMG’s head of “ITeT” (IT enabled Technology) – Alvin Gan.

Besides that, in Malaysia, the time to start a new business is just take around 19 days, stated by the World Bank. Most of the important process or document can be submit through Malaysia website. According to 2017’s Top five countries to start a business, Malaysia is place at number two (Radu, 2018). That is one of the reason that why so many e-wallet appear in Malaysia and more and more merchant start to use it. A scholar state that they will be soon of see everyone in Malaysia is holding their phone and swipe the QR code to pay for their purchase. (Tan, 2018) As indicated by Urban Airship, 54% of buyers have utilized the portable wallets implanted in their cell phones through applications, for example, Apple Wallet and Android and Samsung Pay, and that number will just develop (Duska, 2017).

Hence, the literature review of determinates that influencing consumer intention on adoption of e-wallet will be provided in this chapter. This chapter would discussed the model and variables that affect the consumer intentions towards adoption of e-wallet. The whole study would supported by extended TAM model that contains the variables like perceived usefulness, perceived ease-of-use, social influence and perceived credibility.