Extending the technological breakthrough allows a rapid tectonic change in our society, paving the way for even without cash transactions.
The digital economy, e-wallet is one of the significant contributors to Malaysia. The country is already witnessing an increasing number of people who accept cashless payment methods, such as e-wallets, rather than traditional cash use.
Malaysia is already on its way to cashless, but it still has a long way.
Malaysia’s e-wallet payments account for half of the total payments without paying cash in Malaysia, which represents only 20% of total payments in the country. There are various types of electronic payment services, including e-wallets, Internet banking, e-money systems, electronic payment systems, and online stored system values.
Arguably the most convenient of them all is the e-wallet, which stores partner credit, debit, prepaid and loyalty cards in a single application so you can pay bills or purchase items from one place.
However, by spreading significant consumer information about the operation of such platforms and the benefits it offers, it is safe to say that more and more Malaysians will adopt appropriate digital transactions in the future.
For this comparison, we use the most powerful metrics for an e-wallet. First, payment technology is essential for the ease with which users and merchants can start using the system.
Here is a short list of stores that accept a particular e-wallet; is not a complete directory because too much space should be stored in one place. It is a collection of the six most advanced digital wallets in Malaysia.
Six Trending Digital Wallets In Malaysia
Alipay is an e-wallet payment method that provides a secure platform where customers can store funds for online use. It mainly offers a free payment service to users.
The Ant Financial Services Group in Malaysia does this. Alipay is one of the largest mobile and in-store payment platforms in the world. It was introduced in Malaysia and is currently managed by a related group, the Ant Financial Services Group.
Alipay’s e-wallet payment service is currently being accepted into more than 110,000 retail outlets worldwide and to more than 70 foreign markets. Globally, especially in China, a digital wallet application can be used to tax, book a hotel, buy movie tickets, and even arrange a meeting with a doctor.
In Malaysia, Maybank and CIMB have signed a partnership with Alipay to enable electronic wallet service in the country.
To use Alipay, you need to open an account that is recognized. In Malaysia, Maybank, CIMB and Public Bank provide non-cash payment services acting as a settlement bank and acquirer of a commercial bank to facilitate Alipay.
Customers will have to register with Alipay before making a payment. Online customers can choose the payment method for Alipay to be used on the billing page.
2. WeChat Pay
Did you know that there are 20 million WeChat users in Malaysia and that they are quite large considering the current 31 million people in Malaysia? WeChat Pay provides fast and reliable payment services to its users and has quickly become one of the most popular E-payment services in China.
WeChat, a popular Chinese mobile giant, launched its WeChat Pay Digital Payment Gateway in Malaysia in 2011 in a progressive way. The E-wallet can be used to transfer money from point to point, as well as to pay for offline merchants through the Quick Pay feature.
WeChat Pay is perhaps one of the most eminent e-wallets to reach Malaysia; Be connected to one of the most popular instant messaging available. It offers an added benefit of purchasing bus tickets. An attractive feature that can meet the needs of the largest WeChat main demographic.
Malaysian WeChat Pay users could be delighted that WeChat confirmed the implementation of its digital payment system. Digital wallet allows residents to pay and transfer money to ringgit when a Malaysian debit card is connected.
When GrabPay Malaysia was first launched, users were initially enabled to enjoy the convenience of non-cash payments. Users can pay for their travel with a debit or credit card. But now, GrabPay will expand the service and include payment for other purchases, other than driving.
This means that GrabPay will soon offer e-money services after receiving the permission of Bank Negara Malaysia to do so.
The e-wallet service GrabPay allows users to spend money without money using the same Grab application. Consumers will be able to access transportation and non-cash payments for everyday services, such as paying food and beverages or even transfers to friends.
It also has a partnership with Maybank for a mutual platform with merchants who accept Maybank Pay.
It should be noted that while GrabPay is available in Southeast Asia, it does not convert credits into local currencies. This means that users will have to raise the credit when traveling manually.
The Boost e-wallet is another electronic wallet that allows you to scan the QR code to pay for your purchases. A relatively new player on the market, the application can be used at certain locations in the Klang Valley and around it.
Boost e-wallet primary audience is smaller merchants that are only experimenting with the idea of cashless payments. With the Boost app, users have been able to collect loyalty rewards, send and receive e-vouchers, and transfer or receive money.
The company targets Pasar Malam suppliers across the country and has had some success in that regard. More importantly, it works with utility companies such as Telekom Malaysia and SYABAS for all billing through the app. It also develops a partnership that allows users to park in the larger KL region.
How do Boost e-wallet and other features work?
- Use the “Scan & Pay” function to pay
- Send money to your family and friends from your wallet to increase without any additional costs
- Enjoy great deals and discounts on online shopping, games, movies, music and more.
- Load mobile bonus for 5 seconds
- 17 banking partners including M2U, CIMB clicks, etc.
PayPal is the grandfather of the electronic wallet in Malaysia. Existing even before the term e-wallet was coined. As a worldwide organization, PayPal in Malaysia can be used across borders, and even converted between payment currencies. It also allows users to withdraw by transferring their funds to a local bank account.
The main problem with PayPal is significantly higher fees charged for transferring funds. The company reduced its international payments by 7%; which is more than some people would like to deal with. PayPal is probably the most commonly used payment gateway for small businesses in Malaysia.
Pay for items and services and track your costs through PayPal. You can create three types of PayPal accounts: personal, premium, and professional. You can link a debit or credit card to make transactions.
There is no transaction fee for the personal account that is sent via PayPal account and electronic check. Electronic checks are a type of electronic payment that is made through your bank account.
But if your friends are transferring money to a PayPal credit or debit card account, a transaction fee is charged. When you buy online through PayPal, you have the option to pay via PayPal or credit or debit card. PayPal balance is a prepaid system, which means that you must add funds to your PayPal account.
6. Samsung Pay
As another easy access payment gateway, Samsung Pay uses Near Field Communication (NFC) and Secure Magnetic Transmission (MST) to make secure and secure online payment transactions. While MST records a magnetic signal to facilitate transactions, NFC uses a payment method for payment. Most retailers in Malaysia accept Samsung Pay.
Unlike other e-wallets in this comparison, Samsung Pay does not store any funds. Instead, it stores credit card information and acts as a sort of extra layer between two. What’s unique here is its proprietary MFT technology. This allows a smartphone to mimic the magnetic strip of a credit card.
These are all the main digital wallets that being used in Malaysia. Ya, I know, no one actually uses Samsung Pay in Malaysia, neither Apple Pay. But we thought it could be mentioned here as we predict that Samsung Pay will gradually enter the market after the China giant players, just careful observe how much budget they have & will be investing in the coming months. What’s your thought? Share with us in the comment.