BELIEVE it or not, electronic wallets (e-Wallets) are one of the best inventions of the 21st century. They’re quick and easy, allowing people to make payments with a single tap.
E-Wallet merupakan sejenis kad elektronik yang digunakan untuk transaksi online yang dibuat melalui telefon atau komputer. E-Wallet mempunyai utiliti yang sama dengan kad kredit atau kad debit, tetapi e-Wallet perlu disambungkan ke akaun bank individu untuk membuat pembayaran
E-Wallet merupakan sejenis akaun pra-bayar yang dilindungi kata laluan di mana pengguna boleh menyimpan wangnya untuk sebarang transaksi dalam talian.
An e-Wallet can be defined as an electronic or online device that allows transactions to be made via a computer or smartphone.
Most e-Wallets, like credit or debit cards, are linked to the individual’s bank account in order to make payments. They’re also usually protected with passwords or identification.These days, one can pay for just about anything with e-Wallets, including groceries, clothes, flight tickets, gadgets and others.
E-Wallet has mainly two components, software and information.
Software : The software component stores personal information and provides security and encryption of the data.
Information: The information component is a database of details provided by the user which includes their name, shipping address, payment method, amount to be paid, credit or debit card details, etc.
For setting up an e-Wallet account, the user needs to install the software on his/her device, and enter the relevant information required. After shopping online, the e-Wallet automatically fills in the user’s information on the payment form.
To activate the e-Wallet, the user needs to enter his password. Once the online payment is made, the consumer is not required to fill the order form on any other website as the information gets stored in the database and is updated automatically.
E-Wallet is a digital equivalent of a real-world physical wallet which mainly targeted to mobile users. Users store money, credit card, debit card or prepaid details inside the digital wallet and the user’s personal information is encrypted and stored securely.
Besides, it has other features build-in such as parking payment, voucher purchase or bill payment to enhance the application itself to make it convenient and useful for the consumers.
It is simple to differentiate the e-Wallet and mobile payment app. A fully functional e-Wallet has to fulfill a list of criteria such as:
- It has to be available as an app for both Android and iOS (Apple).
- It must allow you to top-up the balance, via online banking, debit card, credit card, or cash.
- It must allow you to do a Personal to Personal (P2P) transfer.
- It must allow you to scan a static QR code by the merchant to make payment.
- It must be made available to all the consumers (mass market).
- It must be an open-loop – support payments to third-party merchants.
- It must obtain the e-Money Issuers License from BNM.
Types Of e-Wallet
|Types||Network Based e-Wallet||Card Based e-Wallet|
|Store||It stores digital money on the cloud||It rides on existing card network|
|Examples||GrabPay, Boost, TouchnGo||BigPay, AEON, MPay|
Application/Scope Of Digital Wallets
- Digital wallets can be used to make online purchases from e-commerce websites
- To pay various utility bills such as electricity, prepaid recharge, booking movie tickets, telephone bills, etc
- Can be used to order food online
- Can be used for travel bookings
- Online fund transfer can be made through a digital wallet
- Many financial products such as mutual funds and insurance can be purchased
How To Fund Your e-Wallet?
Top up your e-Wallet via methods below:
- Credit card – Top-up e-Wallet via Visa or Master credit card.
- Debit card – Top-up e-Wallet via Visa or Master debit card.
- Online bank transfer – Top-up e-Wallet via online baking like Maybank, CIMB, RHB, UOB etc.
- MOLPay cash at 7eleven – Top-up e-Wallet via MOLPay cash at 7-11 outlets, only for RazerPay, GrabPay for now.
Why Use e-Wallet?
1. Secure & Safe
All your account information is encrypted, which means the actual account numbers aren't stored on your phone.
Password / passcode is required when you wish to change / view account information or make any purchase or transaction.
There are plenty of promotions available by using e-Wallets.
Promotions such as discounts, good deals, cash rebate, reward points, petrol cash back etc.
No more fumbling over cash and coins.Once your payment is made, the transaction is recorded automatically in your e-Wallet apps.
4. Easy Transfer
It is easy to transfer / send money to different accounts. It is convenient to split the bills with your colleagues or friends.
5. Easy Parking
It is easy to make payment for street parking, no more scratching parking coupons or paying with coins at the parking machine.
6. Save Cost
Best exchange rate offered (direct pay via Mastercard / foreign ATM withdrawal). Zero-processing fee for AirAsia air ticket purchase via Big Pay.
Who Are The e-Wallet Providers In Malaysia?
These cashless transactions have been mushrooming around the world, leaving consumers spoilt for choice. Countries like China, Norway, Britain and Japan have been leading the charge in cashless transactions and Malaysia is also a fast grower.
According to a report by Bank Negara Malaysia last year, there are 42 eMoney issuers – five banks and 37 non-banks.
Admins will provide a list of the best e-Wallet services based on the rating provided by users on the Google Play Store in the next article.