PETALING JAYA: Just a few months ago, retiree KC Cheong, 71, had no idea how to make payments on his mobile phone.

But today, not only does he use his e-wallet regularly to pay for food and drinks, but he also uses it to generate savings too.

“My e-wallet account enables me to put aside savings, which help me earn daily interest on top of my credit.

So I’ll get some extra money while enjoying the convenience of paying through my phone,” said the retiree.

Cheong is part of a growing trend of Malaysians who are using electronic money (e-money), like e-wallets and mobile apps, to pay for goods and services.Describing e-wallets as useful, he said he only began to use them after receiving the one-off RM100 e-wallet credit given by the government to eligible adults.

Last year, the government rolled out its e-wallet initiative, which saw 10 million adults in the B40 and M40 groups receiving the credit.

“However, some will still struggle with adapting to e-payments. In that sense, I believe the government should especially help the senior citizens,” he said.

However, Cheong stressed that cash will still be needed, as many shops and stalls do not accept credit cards.

Systems analyst Anthony Mahendran, 37, said his top payment method is his credit card, followed by e-wallet and cash.

However, he hopes that there will be better security involving electronic payments, as his credit card was compromised twice in the same year.

“But having cash also comes with its own issues, like the possibility of misplacing it,” he said.

Fomca chief executive officer Saravanan Thambirajah said the shift towards e-wallets and credit cards in Malaysia represents a significant change in consumer behaviour, driven primarily by convenience, speed and attractive rewards.

“E-wallets often provide cashback, discounts and exclusive promotions that entice consumers,” he said.

Despite the popularity of digital payments, Saravanan said many Malaysians still rely on cash and traditional payment methods.

“This is especially true among the elderly, rural populations and individuals concerned about security.

Cash remains a tangible and straightforward way to manage spending, offering a sense of control and protection against digital fraud. For some, the prospect of using e-wallets or cards is intimidating, with fears of falling victim to scams,” he said.

As such, Saravanan urged the government to strengthen consumer protection laws that hold digital payment providers accountable, while service providers must support consumers through user-friendly, secure platforms.

https://www.thestar.com.my/news/nation/2024/11/28/handy-but-consumers-want-higher-level-of-protection