The e-wallets , also known as digital wallet or electronic wallet , are one of the new payment methods that has experienced more growth in Malaysia over the past years. According to Bank Negara Malaysia, there are approximately 40 e-wallet licenses that have been given.
According to GrabPay Malaysia, they have recorded 20 million downloads of its app and is accepted at more than 30,000 participating merchants to date. This means that electronic wallets aren’t going to slow down anytime soon.
The government is actually pushing to have half of the population to use E-wallets. This indicates that cashless transactions will likely be the future in the country’s growing ecommerce industry.
So what exactly is Electronic Wallet?
The e-wallets, also known as digital wallet or electronic wallet, are one of the new payment methods that has experienced more growth in recent years.
It is a wallet or purse available through the Internet where you can keep currencies. E-wallet is not a bank account, it is only a tool that facilitates electronic payments in affiliated stores and internationally very quickly. The money kept in them is not physical, but it can be transferred to bank accounts.
An electronic Wallet can be managed from a smartphone , computer or computer in a very simple way, with a password .
There you can receive payments for different concepts in the currencies accepted by the Wallet. If you require another currency, you can go to an exchange.
For people accustomed to making purchases over the Internet, having an electronic wallet can make your life easier. From an e-wallet application the user can manage their money virtually from their mobile and make payments easily at any time.
The popularity that digital wallets have reached in Malaysia is due to the comfort and ease they provide when paying. And this is precisely based on the great advantage that businesses can obtain by integrating an e-wallet.
How does an electronic wallet work?
The main objective when integrating an e-wallet is to make available to the end user a very simple application that allows you to pay quickly and safely. In general, electronic wallets work only with the user linking a bank account or the cards they have active.
For a user to have an electronic wallet means having those linked cards on hand and depending on the payment you are going to make, you can select the most appropriate option.
In the case of businesses, it is about streamlining and simplifying the payment process. There are electronic wallets that are very easy to integrate and save considerable time. In addition, using the administration panel that brings an e-wallet you can manage all the information about the payments received.
Something important is that using a digital wallet you can also receive payments through cards (MasterCard or Visa) as long as you have a merchant account. The advantage of this is that you don’t have to set up payment systems separately.
What are the main advantages of using an Electronic wallet?
When making payments using cash, we always run the risk of receiving the wrong change or of losing a note. In addition, when we carry out card transactions, we may be surprised with a fake ATM or even have our password and card stolen.
The digital wallet, on the other hand, is very secure and does not send your data to make the payment, for example. That’s because it uses QR Code or NFC (payment by approximation) technology. Both are very safe.
As security is always a concern on digital issues, we have to say that all electronic wallets use encryption and tokenization technology. When paying with an electronic wallet, the online store never has access to card or account data.
It is common for the user to have to unlock their device and then enter the password of their digital wallet or use the authentication method enabled.
For a trade, the safer an e-wallet, the better. Details that can be addressed at the time of valuing the options are the extra security measures to prevent fraud. Some of them are double authentication systems or the pin request to perform each operation.
Most mobile devices include biometric technology, that is, facial, voice or fingerprint recognition. This technology is what e-wallets apply in most cases to access our bank details, so the exclusivity of access to cards is guaranteed in a much safer way than with physical cards, since, Paying with the latter, stealing can be as simple as looking at the pin that we enter in the POS when accepting the purchase.
Ease of Use
Another important note to point out that its use is very practical, simple and convenient, since the payment is made faster than by entering the conventional credit card in the POS. In addition, it is not necessary to use any pin in most transactions, as long as the price is not very high.
In addition, e-wallets store all the movements made with the cards as electronic receipts, so using them there is no need to waste paper. In addition, it is more difficult to lose the phone than the printed ticket that justifies the purchases and reflects the charges, so it also facilitates the claims in case of some erroneous collection.
Greater control over your spending
As everything you pay for with your digital wallet is recorded in it, it becomes easier to control expenses. Because, whenever you need you can consult the payment history and see everything that was purchased through the wallet.
For example, if you needed to do this with cash payments, you would have to record each purchase on a spreadsheet or notebook. With the card, depending on the operator, you will only have access to what you bought with it at the end of the month. Thus, the digital wallet becomes your best ally at this point.
For businesses an electronic wallet system or points cards can help any business to show that it values its customers, encouraging them to revisit the establishment to re-consume the products and / or services. This is an economical way to keep customers captive and helps to know them better.
Knowing customers helps to create strategies to satisfy them, as well as to create and maintain loyalty on their part, by having some basic data that is obtained from the creation of an electronic wallet for the client, you can create programs -mail marketing.
This type of systems allows to maintain continuous communication with clients and create emotional links with the business. It is possible to automatically send congratulations on birthdays, Christmas, New Year, etc. In addition to providing special promotions for being a frequent customer, among other issues.
In general, when an organization uses electronic wallets, it can generate frequent customer and loyalty programs, as it can apply referral bonuses, satisfaction surveys, exclusive offers, etc. Customer loyalty is a matter that any business today must pursue.
Loyalty to customers through points in an electronic wallet increases the frequency of visits to the business. Likewise, VIP clients or affiliates of a loyalty program are approximately 70% more likely to make a business recommendation that procures them to their friends and family.
Other benefits and advantages of using e-wallets
Considering that they have become popular internationally and especially in Malaysia as a means of payment, electronic wallets have other advantages:
- Reduce or eliminate the carrying of cash.
- The possibility of theft of money decreases.
- Allow to have the money available so immediately.
- They guarantee total security in operations.
- They offer reduced costs per transaction and shorter times than through the banking system.
- They do not depend on the bank schedule or calendar, so payments are always made immediately.
Features of an electronic wallet
Some characteristic elements can be highlighted, among which are:
- They are easily and quickly accessed through a PC or smartphone.
- They are very safe and reliable.
- They require some document or means of identity verification.
- The times of transfers between users are in the order of seconds.
- They do not require maintenance fees.
- They can charge commissions by transfer, either by sending or receiving, or both.
- They do not pay any interest for the money available in the Wallet.
So there you go, if you think there are more advantages of using e-wallet, let us know in the comment section below.