IDEAS home Printed from https://ideas.repec.org/p/osf/osfxxx/y7zds.html
   My bibliography  Save this paper

Using E-Wallet for Business Process Development: Challenges and Prospects in Malaysia

Author

Listed:
  • Alam, Md. Mahmudul

    (Universiti Utara Malaysia)

  • Awawdeh, Ala Eldin
  • Bin Muhamad, Azim Izzuddin

Abstract

Purpose: This study aims to explore the challenges and prospects of using e-wallets in Malaysia, and what it means for businesses and customers. Suggested here are strategies to leverage the strengths and opportunities as well as overcome the weaknesses and threats. Suggested here are strategies to leverage the strengths and opportunities as well as overcome the weaknesses and threats. Design/methodology/approach: This study analyses the e-wallet phenomenon using a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis to assess Malaysian business development. It is supported with findings from the literature and secondary data. The relevant secondary data were collected from Bank Negara Malaysia and the World Bank. Findings: This study shows that e-wallets in Malaysia have still not achieved their purpose but there is huge potential to do so. The SWOT analysis identified several strengths (e.g. financial incorporation, easy to access, protection and safety, simple for other accounts to connect to, product and consumer service management, quick to implement/administer), weaknesses (e.g. lack of infrastructure and the ‘tapping’ of devices already cornered by the mobile phone market, opportunities (e.g. eliminating fraud, better customer service, promotion/loyalty that can be built into customer experience) and threats (e.g. attacks from viruses, frequent inquiries whether multiple wallets can be used by clients, the concerns of reckless spending behaviour of the E-wallet users). Research implications: This study is crucial for assessing the current situation and the prospects of e-wallets in Malaysia. This study also offers significant insights for policymakers and e-wallet service providers to develop appropriate strategies to enhance e-wallet services in Malaysia. Originality/value: This paper is the first of its kind to integrate a SWOT analysis and the rapid development of the e-wallet market in Malaysia. Hence, the findings could broaden our knowledge on the fintech industry and enable firms to participate in the e-wallet market.

Suggested Citation

  • Alam, Md. Mahmudul & Awawdeh, Ala Eldin & Bin Muhamad, Azim Izzuddin, 2021. "Using E-Wallet for Business Process Development: Challenges and Prospects in Malaysia," OSF Preprints y7zds, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:y7zds
    DOI: 10.31219/osf.io/y7zds
    as

    Download full text from publisher

    File URL: https://osf.io/download/61f15e97f768440656105968/
    Download Restriction: no
    File URL: https://libkey.io/10.31219/osf.io/y7zds?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Peter Gomber & Jascha-Alexander Koch & Michael Siering, 2017. "Digital Finance and FinTech: current research and future research directions," Journal of Business Economics, Springer, vol. 87(5), pages 537-580, July.
    2. Reena das Nair & Namhla Landani, 2020. "Making agricultural value chains more inclusive through technology and innovation," WIDER Working Paper Series wp-2020-38, World Institute for Development Economic Research (UNU-WIDER).
    3. Shaikh, Aijaz A. & Glavee-Geo, Richard & Karjaluoto, Heikki, 2017. "Exploring the nexus between financial sector reforms and the emergence of digital banking culture – Evidences from a developing country," Research in International Business and Finance, Elsevier, vol. 42(C), pages 1030-1039.
    4. Boon Cheong Chew & Xiaobai Shen & Jake Ansell, 2020. "Alipay entered Malaysia: a closer look at the new market entry strategy driven by Chinese tourists," Qualitative Research in Financial Markets, Emerald Group Publishing Limited, vol. 12(4), pages 561-577, July.
    5. Jui-Long Hung & Binjie Luo, 2016. "FinTech in Taiwan: a case study of a Bank’s strategic planning for an investment in a FinTech company," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 2(1), pages 1-16, December.
    6. Patrick Hess, 2017. "The Ongoing Evolution of Payment Instruments in China: A Case Study in Financial Innovation, and on the Role of the Central Bank," Financial and Monetary Policy Studies, in: Frank Rövekamp & Moritz Bälz & Hanns Günther Hilpert (ed.), Cash in East Asia, chapter 0, pages 117-131, Springer.
    7. John W. Schindler, 2017. "FinTech and Financial Innovation : Drivers and Depth," Finance and Economics Discussion Series 2017-081, Board of Governors of the Federal Reserve System (U.S.).
    8. Rainer Alt & Roman Beck & Martin T. Smits, 2018. "FinTech and the transformation of the financial industry," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(3), pages 235-243, August.
    9. Singh, Nidhi & Sinha, Neena & Liébana-Cabanillas, Francisco J., 2020. "Determining factors in the adoption and recommendation of mobile wallet services in India: Analysis of the effect of innovativeness, stress to use and social influence," International Journal of Information Management, Elsevier, vol. 50(C), pages 191-205.
    10. Christian Haddad & Lars Hornuf, 2019. "The emergence of the global fintech market: economic and technological determinants," Small Business Economics, Springer, vol. 53(1), pages 81-105, June.
    11. Katrin Assenmacher & Signe Krogstrup, 2018. "Monetary Policy with Negative Interest Rates: Decoupling Cash from Electronic Money," IMF Working Papers 2018/191, International Monetary Fund.
    12. Shekhar, Sudhanshu & Manoharan, Bhupesh & Rakshit, Krishanu, 2020. "Going cashless: Change in institutional logic and consumption practices in the face of institutional disruption," Journal of Business Research, Elsevier, vol. 114(C), pages 60-79.
    13. Lashitew, Addisu A. & van Tulder, Rob & Liasse, Yann, 2019. "Mobile phones for financial inclusion: What explains the diffusion of mobile money innovations?," Research Policy, Elsevier, vol. 48(5), pages 1201-1215.
    14. Palmié, Maximilian & Wincent, Joakim & Parida, Vinit & Caglar, Umur, 2020. "The evolution of the financial technology ecosystem: An introduction and agenda for future research on disruptive innovations in ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    15. Kazan, Erol & Tan, Chee-Wee & Lim, Eric T.K & Sørensen, Carsten & Damsgaard, Jan, 2018. "Disentangling digital platform competition: the case of UK mobile payment platforms," LSE Research Online Documents on Economics 86345, London School of Economics and Political Science, LSE Library.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Atiqah Akmal Ramli & Nur Izzati binti Mazlan & Zatul Fahany Harun & Yuslina Liza Bte Mohd Yusof, 2024. "Factors Influencing Customers on the Use of E-Payment in Klang Valley," Information Management and Business Review, AMH International, vol. 16(2), pages 18-23.
    2. Sutticherchart Juthatip & Rakthin Sirisuhk, 2023. "Determinants of digital wallet adoption and super app: A review and research model," Management & Marketing, Sciendo, vol. 18(3), pages 270-289, September.
    3. Ayatulloh Michael Musyaffi & Razana Juhaida Johari & Christian Wiradendi Wolor & Amer Azlan Abdul Jamal & Anaya Zahra Santika & Muhammad Arifsyah Arifi, 2023. "The Innovativeness and Value of Quick Response Code Payment for MSMEs: The Influence of Security-Related Factor," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 89-107.
    4. Nurul-Ain Abdul-Halim & Ali Vafaei-Zadeh & Haniruzila Hanifah & Ai Ping Teoh & Khaled Nawaser, 2022. "Understanding the determinants of e-wallet continuance usage intention in Malaysia," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(5), pages 3413-3439, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Doina Caragea & Theodor Cojoianu & Mihai Dobri & Andreas Hoepner & Oana Peia & Davide Romelli, 2024. "Competition and Innovation in the Financial Sector: Evidence from the Rise of FinTech Start-ups," Journal of Financial Services Research, Springer;Western Finance Association, vol. 65(1), pages 103-140, February.
    2. Sánchez, Marisa A., 2022. "A multi-level perspective on financial technology transitions," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    3. Mustafa Raza Rabbani & Shahnawaz Khan & Eleftherios I. Thalassinos, 2020. "FinTech, Blockchain and Islamic Finance: An Extensive Literature Review," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 65-86.
    4. Huarng, Kun-Huang & Yu, Tiffany Hui-Kuang, 2022. "Causal complexity analysis for fintech adoption at the country level," Journal of Business Research, Elsevier, vol. 153(C), pages 228-234.
    5. Anjum Razzaque & Richard Thomas Cummings & Magdalena Karolak & Allam Hamdan, 2020. "The Propensity to Use FinTech: Input from Bankers in the Kingdom of Bahrain," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 19(01), pages 1-22, March.
    6. Massimo Preziuso & Franziska Koefer & Michel Ehrenhard, 2023. "Open banking and inclusive finance in the European Union: perspectives from the Dutch stakeholder ecosystem," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-27, December.
    7. Luo, Sumei & Sun, Yongkun & Yang, Fan & Zhou, Guangyou, 2022. "Does fintech innovation promote enterprise transformation? Evidence from China," Technology in Society, Elsevier, vol. 68(C).
    8. Choudhary, Priya & Thenmozhi, M., 2024. "Fintech and financial sector: ADO analysis and future research agenda," International Review of Financial Analysis, Elsevier, vol. 93(C).
    9. Chaklader, Barnali & Gupta, Brij B. & Panigrahi, Prabin Kumar, 2023. "Analyzing the progress of FINTECH-companies and their integration with new technologies for innovation and entrepreneurship," Journal of Business Research, Elsevier, vol. 161(C).
    10. Wang, Xiaoting & Hou, Siyuan & Kyaw, Khine & Xue, Xupeng & Liu, Xueqin, 2023. "Exploring the determinants of Fintech Credit: A comprehensive analysis," Economic Modelling, Elsevier, vol. 126(C).
    11. Preziuso, Massimo & Koefer, Franziska & Ehrenhard, Michel, 2023. "Open banking and inclusive finance in the European Union: Perspectives from the Dutch stakeholder ecosystem," EIF Working Paper Series 2023/94, European Investment Fund (EIF).
    12. Gupta, Suraksha & Kanungo, Rama Prasad, 2022. "Financial inclusion through digitalisation: Economic viability for the bottom of the pyramid (BOP) segment," Journal of Business Research, Elsevier, vol. 148(C), pages 262-276.
    13. Pacelli, Vincenzo & Miglietta, Federica & Foglia, Matteo, 2022. "The extreme risk connectedness of the new financial system: European evidence," International Review of Financial Analysis, Elsevier, vol. 84(C).
    14. Yingying Zhang-Zhang & Sylvia Rohlfer & Jay Rajasekera, 2020. "An Eco-Systematic View of Cross-Sector Fintech: The Case of Alibaba and Tencent," Sustainability, MDPI, vol. 12(21), pages 1-25, October.
    15. Maik Dehnert, 2020. "Sustaining the current or pursuing the new: incumbent digital transformation strategies in the financial service industry," Business Research, Springer;German Academic Association for Business Research, vol. 13(3), pages 1071-1113, November.
    16. Nilashi, Mehrbakhsh & Ali Abumalloh, Rabab & Keng-Boon, Ooi & Wei-Han Tan, Garry & Cham, Tat-Huei & Cheng-Xi Aw, Eugene, 2024. "Unlocking sustainable resource management: A comprehensive SWOT and thematic analysis of FinTech with a focus on mineral management," Resources Policy, Elsevier, vol. 92(C).
    17. Cuadros-Solas, Pedro J. & Cubillas, Elena & Salvador, Carlos, 2023. "Does alternative digital lending affect bank performance? Cross-country and bank-level evidence," International Review of Financial Analysis, Elsevier, vol. 90(C).
    18. Qihang Xue & Caiquan Bai & Weiwei Xiao, 2022. "Fintech and corporate green technology innovation: Impacts and mechanisms," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3898-3914, December.
    19. Alaassar, Ahmad & Mention, Anne-Laure & Aas, Tor Helge, 2020. "Exploring how social interactions influence regulators and innovators: The case of regulatory sandboxes," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    20. Chang, Vincent Y.L., 2023. "Do InsurTech startups disrupt the insurance industry?," Finance Research Letters, Elsevier, vol. 57(C).

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:osf:osfxxx:y7zds. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: OSF (email available below). General contact details of provider: https://osf.io/preprints/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.