12.the Effects of E-Wallet Among Various Types of Users in Malaysia A

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The Effects of e-Wallet Among Various Types of Users in Malaysia: A

Comparative Study
Conference Paper · March 2021
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3rd Kuala Lumpur International Conference on Education, Economics and Technology
(KLICEET2021) eISBN: 978-967-2476-13-9
Kuala Lumpur, Malaysia
The Effects of e-Wallet Among Various Types of Users in Malaysia:

A Comparative Study
Faiswal Kasirye1*, SM Mahmudul Haq Masum1

1
Department of Communication, International Islamic University Malaysia, Kuala Lumpur, Malaysia
*Corresponding Author: Kasirye.faiswal@gmail.com

_____________________________________________________________________________________________
Abstract: With the advent of new technology, several shoppers around the world are now
preferring cashless transactions even when they go for their daily shopping sprees in the malls.
The e-wallet services are credited by users for their effective and convenience while being used.
The current study is aimed at examining the effects of e-Wallet usage among various users in
Malaysia while comparing the different users of the electronic wallet services. Specifically, the
study is set out to determine the effects of e-wallet usage among various users in Malaysia, find
out the level of e-wallet usage among various users in Malaysia and also to determine differences
among users in Malaysia on the effects of e-wallet usage. The study is guided by the innovation
diffusion theory and adopts a quantitative research design and survey method with a questionnaire
as the tool for data collection where a total of 381 IIUM students as respondents participated in
the survey. The findings of the study reveal that, the users priotize the things that they buy, spend
their wallet money with limitations and always budget accordingly. In addition, there are no
significant differences in the age groups of the respondents, and the income levels of the users
when compared to the effects of e-wallet usage. Similarly, there was no significant different
between male and female users on the effects of e-wallet usage among users in Malaysia. The
findings also show that, age, gender and income levels have a bearing on the effects of e-wallet
usage in general. The Innovation diffusion technology theory is also supported in the study.
Keywords: e-Wallet, cashless transactions, innovation diffusion theory, shoppers, technology,

users
______________________________________________________________________________
1. Introduction
Since the advent in the current technology used world over, the advancement came with a wave of
technology applications and among them is E-wallet. The software has of late been branded as a
digital wallet as compared to the physical wallet that human beings both men and women use in
their daily business transactions (Uduji, Okolo‐Obasi, & Asongu, 2019). The application replaces
the would be called analogue way of purchasing items using physical cash with the new wave of
cashless economy that is currently being preferred worldwide.
All the technological developments come with the constant usage of the internet that enables such
electronic cashless transactions to take place in this 21st century. The e-wallet system is blessed
with unique payment characteristics that enables a buyer to use their phone to make online
transactions without using physical cash and its done just by a single touch on your mobile phone.
These now days is the preferred type of payment among consumers due to the increase in its usage
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especially among the consumers of the different age groups, most of them being the young people
who are most familiar with the current wave of the technology (Yaokumah, Kumah & Okai, 2017).
In Malaysia, there has been a tremendous growth in the usage of the e-wallet service largely
because of the visible facts of adopting a cashless economy, of course other reasons are attributed
to security concerns and the fact that it saves a great deal of both the buyer and the consumers
times while making the transaction (Nizam, Hwang & Valaei, 2018). Additionally, this kind of
payment also accords consumers comfortability (Liébana-Cabanillas et al., 2014) and easiness and
speed in its usage and operation (Punwatkar, et al., 2018).
The kind of digital transactions that e-wallet advances operates with the systematic usage of a
quick-response code or which is normally referred to as (QR) code generated by the seller for the
buyer to use at the time of transactions. Some of the examples of e-wallet that often use QR code
in Malaysia include Boost, BigPay, Touch n Go, Alipay, Favepay, Grab pay and many others that
usually operate using a mobile application usually downloadable from the google play store on
android software as well as on the apple store for those that use the iOS software. The buyers can
pay for their commodities by just scanning the QR code which takes them to the seller’s interface
for e-payment of the purchased goods. These e-wallet platforms have done a great job in
transforming the country into a cashless economy where hard cash is no longer a requirement at
most points of sale (Oh, 2018).
Sario & Kumar (2018) note that, as a result of the coming of such technology, there has been a
decrease in the number crimes that are being committed as a result of using hard cash while making
transactions at several points of sales in Malaysia. this is largely attributed to the fat that
Malaysians welcomed the move into a cashless economy that will eventually see the country move
places economically. In fact, Kumari and Khanna (2017) in their study concluded that since the
introduction of the move into the cashless economy, they now prefer using e-wallet as compared
to the cash transactions because it minimizes the physical handling of money that might eventually
end up in people’s pockets without proper accountability.
Problem Statement
e-wallet has already been established as a preferred mode of payment among Malaysian users
(Abdul Kadir, Ismail & Wok, 2019). The usage of debit and credit cards is overly decreasing
because of the emergency of e-wallet system that offers all the services that the old credit card and
debit card technology offers although in an improved and digital way, where the customer does
not even need to touch their physical wallet to remove cash or even am automatic machine (ATM)
to complete a transaction. The share of wallets and mobile banking has now risen to 40% as per
the 2020 master card study that ranked Malaysia atop other South East Asian countries in terms of
using mobile wallet transactions (Global Data, 2020).
KPMG (2019) in their report noted out some factors that have of recent spiked the usage of e wallet
and mobile payments to include their ease of use of the different wallets while making several
payments after purchase, flexibility with other platforms as well as its convenience in usage.
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Much as e-wallet comes with a rage of advantages to the users, its constant usage has both negative
and positive effects on the different users. Pollitt (2011) notes out some of the effects of this type
of online transaction in relation to security reservations and that there are now several internet
scam cases that are piling up several police posts as a result of the usage of system. This might
also be attributed to the lack of enough information on the usage of the platform. Much as
customers prefer to use the system they have little information concerning its safety, but they go
ahead and use it anyway because of its positive effects like that of being flexible and convenience,
in addition to its easiness to use while making payments to points of sale because it also saves a
great deal of their time (Chan, 2018).
Besides the above effects, some users sometimes also feel that using this type of payment makes
them more prepared in priotizig what they need to buy and they might not need at all, and because
they will be looking at what they have as balance in their wallets, they will be able to budget well
and know their spending limits because they budget everything that they buy (Gupta & Singh,
2017).
Whereas there are several studies that have concentrated on examining mobile banking and mobile
wallet usage together with the constant adoption of the technology in the banking and market
buying sector (Aris, 2020), there are relatively still very few studies that concentrate on effects and
impacts of mobile wallet payment on the different categories of users who use the different e-
wallet systems. And with the constant increase in its usage among Malaysians, its effect on the
users is very important to be highlighted so that the users are aware of the pros and cons of the
different e-wallet systems that they use, intend to and or will use in future, but will be able to make
such decisions with knowledge at their fingertips.
The present study is aimed at examining the effects of e-wallet among various users in Malaysia,
by comparing the different users to the possible effects of using e-wallet as a payment system.
Specifically, the study will answer questions such as; what are the effects of effects of e-wallet
usage among Malaysians? What is the level of e-wallet usage among Malaysians? Is there a
significant difference between the effects of e-wallet and its various users in Malaysia?
Research Objectives
The study’s main objective is to examine the effects of e-wallet on the various users in Malaysia.
The specific objectives include:
1. To determine the effects of e-wallet usage among various users in Malaysia;
2. To find out the level of e-wallet usage among various users in Malaysia; and
3. To determine differences among users in Malaysia on the effects of e-wallet.
Significance of the Study

There is a recognizable lack of enough research to show how e-wallet usage affects various types
of users in Malaysia. these could be categorized according to their age, gender and or the user’s
income levels. Therefore, the findings of this research are expected to contribute to a greater body
of knowledge in e-wallet and mobile applications payment systems through the application and
usage of the unified theory of acceptance and use of technology (UTAUT). This theory together
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with the technology acceptance model (TAM) are dominantly and constantly used in electronic
payment studies and their aim is to explain why users use as well as a particular technology.
The findings of the study are expected to address the issue of whether there is a significant
difference between the users age, gender and income levels and how they are affected by the usage
of the various e-wallet payment systems. As it was noted in the literature by Aris (2019), few
studies concentrate on the users and the effects they encounter on the system, a gap that this study
is aimed at addressing at the end of this study.
The study is also expected to benefit e-wallet users, customers, super markets, marketers, banks as
well as law makers. This will happen upon the study highlighting the resultant effects that various
types of users according to their gender, age and income levels face while using the various e-
wallet systems and whether there is any difference among them since the technology is relatively
new among the users.
Worthy to note, since there are a few regulations regarding mobile and e-wallet payments, this
study is hopping to benefit and aid policy and law makers in enacting a suitable policy on e-
payments that caters for both the customers and the sellers of the commodities, with the aim of
improving regulations to protect the users of the systems.
The users are expected to use the findings of this study to equip their minds with the several effects
that the e-wallet systems come with before they embark on using them, and that all decisions will
then be made out of knowledge regarding the systems.
The results could also help mobile wallet service providers to priotizig and identify the effects that
the systems are bringing on to the users, and there after either change or shape the users’ attitude
towards the systems. In addition to finding out how age, gender and income levels affect different
users of the e-wallet systems.
The findings will also contribute to the existing literature in the domain of digital and mobile
payment systems, although it will be very instrumental and more beneficial to Malaysia since the
respondents are from Malaysia.
2. Literature Review
E-Wallet Usage
As a platform, e-wallet works like a physical wallet where users store electronic money that they
top up with their mobile banking services from the different financial institutions. Its usage saves
a great deal of time, money usage, identity card and credit card theft and allows flexibility of not
requiring constant log ins all the time unlike other mobile payments systems (Junadi and
Sfenrianto, 2015).
The application allows customers to make any type of e-commerce or payment transaction after
incorporating their credit card details on to the wallet system (Uddin, et al., 2014). Proffered by
many for its flexibility and ease of use, the platform is known for its instant communication and
feedback (Osakwe, et al., 2016).
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Abdul Kadir, Ismail & Wok (2019) note that, e-wallet systems are currently preferred by all points
sale both in Malaysia and the world over for its increased usage among customers. This is why
merchants from the different sectors like restaurants, groceries, food delivery, bill payments and
others are preferring to use the services of e-wallet payments for their customers to effect payment
(Rosnidah et al., 2019). In addition, e-wallet systems benefit both sellers and buyers for its
effective service delivery and in the shortest period of time as well as emphasizing the adoption of
the cashless economy.
The transactions relating to e-wallet are often done at the different shops and points of sale that
allow the usage of QR codes that are supposed to be scanned using the customer’s mobile phones
there after confirming a particular payment and an e-receipt is issued instantly (Lu, 2018).
Therefore, as the UTAUT model says, the usage of such a technology will always depend on its
flexibility and ease of usage as well as its compatibility to the available technology as well as the
customer’s gadgets that in most cases require user friendly applications and software for such
systems to be effective among them after installation on their gadgets. However, some effects
whether positive or negative always come in to check on the establishment and usage of such
technology as seen in the next section.
Effects of E-Wallet
E-wallet service is not a new thing because several studies have been done in relation to how it
positively and as well as negatively affect users. For example, Reza (2019) in her study on the
factors that affect e-payment systems found out that, promotion, profit, security efficiency as well
as connectivity were among the many factors that were found to be affecting the using of e-wallet
system while being used among the users. These factors are both positive and negative which
translates that, the system is not that perfect as it might look to be because as we understand,
anything that is technology based is prone to errors (Cooper & Zmud, 1990).
Factors such as system security, speed and comfortability of the e-wallet payment system were
also found to be among those that affect much the system=s and its usage among users in several
studies like that of Tella (2014). This in addition to the earlier effects continue to show, that the
system is also affected by a number of things that will in the end impact on the way the users look
at them.
Another study by Salloum, et al (2019) reveal to us that performance expectations and the system’s
perceived benefits out way other factors in having a positive effect on the various users irrespective
of their demographic characteristic. However, some negative effects like security of the systems,
safety keeping the user’s details in a private manner are some of the negative points that are worthy
to be highlighted as far as the e-wallet systems are concerned.
Clearly, such studies continue to do a comparison on both positive and negative effects by
bringing out both sides to the users. These inconsistences are broadly reflective in almost all the
literature reviewed in this study. hence, we can conclusively say, that there are both positive and
negative effects of e-wallet systems and those effects can stretch all the way to the different users
in terms of their gender, ages and income levels as will be explored in the next write up.
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Types of Users by Age, Gender and Income Level

Age
Demographic characteristics as variables have an effect on the e-wallet adoption. Earlier studies
have come out to conclude that users in their young ages are more motivated to use e-wallet
transactions because they are so much conversant with the technology if they are to be compared
to older users (Jham, 2005 and Parasuraman et.al., 1988).
In his study, Singh et al. (2018) found out that age influences user’s satisfaction and the rate at
which they can use the mobile e-wallet technology. In addition, younger users of e-wallet behave
differently compared to their counterparts. Researchers (Porter and Donthu, 2006; Trocchia et al.,
2012; Wang et al., 2009) conclude that age is an important variable that has a huge effect on the
users of the technology with an intention of buying products using the system.
Older users tend to be relatively laid back in terms of using technology for conducting transactions
because they are skeptical about the technology and rely more on face to face transactions.
Therefore, Age has been identified to have a huge effect between on technology usage and how its
perceived (Yi et al., 2005). Also, older users have more technology anxieties as compared to
younger users (Lee et al., 2010). Also, younger users usually possess huge experiences with the
internet and its usefulness, and therefore have greater importance for the technology, whilst older
people perceive that it with risks and have difficulty in creating complex commands if they are to
use the technology (Chawla and Joshi, 2018).
Earlier studies that examined technology usage in buying found out that, age has positive and
negative effects among users and their buying behaviours online using e-wallet (Stafford, Turan,
& Raisinghani, 2004 and Joines, Scherer, & Scheufele, 2003). In addition, Phang et al. (2006) also
established in their study that age is a dynamic factor for technological acceptance among users.
The study also concluded that younger users are least affected by the problems associated by the
e-wallet technology if they are to be compared to their older counterparts.
Several studies on technology adoption also show that younger users behave differently as
compared to their counterparts. Age strengthens perceived usefulness, perceived cost and
perceived system quality and in turn affects the intention of the user to use the e-wallet system
(Riquelme & Rios, 2010). Also, Older users due to their limited exposure to computers, mobile
handsets and Internet have lower perceptions of self-efficacy in learning Internet technology and
therefore are adversely affected by the current technology that is being used almost every point of
sale in shopping malls (Porter & Donthu, 2006).
However, there are studies which argue that the age of the user does not have a significant effect
on their e-wallet usage behaviour. Most of the technologies today irrespective of the age and social
class are available and affordable to a larger population (Hernandez et al., 2011). Therefore, it can
be concluded that age has both positive and negative effects when it comes to using the e-wallet
technology by the users.
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Gender
Gender is also an important a d definitive variable in determining the usage of e-wallet technology.
It has differences that are psychological (Zhang et al., 2014). Some researchers (Wan et al., 2005
and Shin, 2009) conclude that males are always inclined to use the mobile e-wallet technology as
compared to their female counterparts. And the fact that men are always charged with the duty of
managing the finances of their homes, therefore they always find it easy to use the systems while
buying products. In addition, they also are the principle shoppers in the home, therefore their
buying behaviour would be high, and therefore are likely to be affected by the e-wallet either
negatively or positively.
In addition, Males are assumed to hold more positive attitudinal effects and be less anxious about
technology innovations (Yi et al., 2005). However, women tend to exhibit a higher level of
technology anxiety, while men are more likely to be innovative towards technology Lee et al.
(2010).
In a study on consumer’s adoption of e-wallet technology, Onyia and Tagg (2011) found out that
gender significantly affects the attitude of e-wallet users. In addition, Lie´bana-Cabanillas et al.
(2014) reports that there are both negative and positive relationships between ease of use and
usefulness of the technology towards the users. In addition, Wang, Sun, Cobb, Lawson and
Sharples (2016) found that gender has a huge effect on perceived ease of use of a mobile
technology and its intention to be used. Further, the same study also concludes however that,
gender does not have any effects on perceived usefulness and compatibility of a mobile
technology.
Lastly, Cheung and Lee (2011) found out that, perceived usefulness has positive effects on user’s
attitude to use technology such as that of e-wallet but the effect seems to strongly go to the male
users that their female counterparts. Therefore, it can also be concluded that, e-wallet technology
has both negative and positive effects on the male and female users respectively.
Income Level
Income is money earned by individuals or businesses in exchange for providing products or
services. Income levels usually influence user’s attitude and behaviour. Previous studies have
examined how user’s income levels may be affected by technology adoption like the e-wallet
service. Porter and Donthu’s (2006) study shows that user’s lower income levels are more
concerned about cost of products and are more careful about what they buy and that their
perception is that the cost of a particular product is high compared to the product’s perceived
usefulness.
On the contrary, high income users are able to afford high quality products bought online and with
the latest technology and Internet connection. This differential access to technology also results in
varying levels of anxieties among users, with low income users having high anxieties. Thus,
income level affects user’s technological usage, adoption and understanding.
According to Hernandez et al. (2011), e-wallet user’s high income levels causes them to perceive
lower risks while making online purchases, whereas low income level users distances themselves
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from online transactions. It is logical to believe that with rising incomes, perceptions related to
ease of use, efficiency, convenience and trust with technology adoption will affect the user’s
intention.
The above argument is evident from the findings of a study by Lee et al. (2010) who found that
technology anxiety decreases as user’s income level increases. Users in the high-income groups
are usually active users of communication technologies and thus their level of comfort with using
technologies is high. However, with falling prices of mobile phones and Internet technology, a
large number of users from lower income group have also started using online services.
Innovation Diffusion Theory

Innovation diffusion theory is a broad social psychological theory that purports to describe the
patterns of usage and adoption, explain the mechanisms, and assist in predicting whether and how
a new invention like e-Wallet platforms will be successful (Rogers, 1983, 1995). Rogers (1995)
defines an innovation as an idea, practice, or object that is perceived as new by an individual or
another unit of adoption, and diffusion as the process by which an innovation is communicated
through certain channels over time among the members of a social system.
Innovation diffusion is achieved through user adoption, which means ‘the acceptance into use and
the continued use of a technology (Chen, Gillenson, & Sherrell, 2002). IDT can help to explain
the effects of an innovation system like the e-Wallet and to examine the concerns that users have
in terms of adopting a new innovation. This revelation therefore makes it as the perfect model for
the current study that seeks to examine the effects of the different users of e-wallet as a new
innovation technology among the different users in Malaysia.
IDT has been widely used in explaining IT adoption behavioural studies (Chen et al., 2002; Hsu,
Lu, & Hsu, 2007; Moore & Benbasat, 1991; Wang & Liao, 2008). As noted earlier, IDT posits a
set of innovation attributes to explain the rates and effects of adoption by users: The relative
advantage, compatibility, effects, complexity, trial ability, and observability. Also, previous
research found that users of some technology innovations are in some way affected by the usage
of a new technology like e-wallet and the effects are sometimes positive and on other times
negatives to the innovation adoption (Tornatzky & Klein, 1982). Therefore, IDT will be used to
guide the current study.
Conceptual Framework
This paper suggests that there is there is a significant difference between the effects of e-wallet
and its various users in Malaysia. In order to test this, the difference between the independent
variables, namely; E-wallet usage, age, gender and income levels independent variables and effects
of e-wallet as the dependent variable are shown Figure 1 and hypotheses are developed for the
study
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E-wallet Usage
H1
Age H2
H3 Effects of e-Wallet
Gender
H4
Income Levels
Figure 1: A conceptual framework for effects of e-wallet among users
Hypotheses of the Study

Based on the literature review, the unified theory of acceptance and use of technology, and
conceptual framework, the following hypotheses are formulated. They are:
H1: There is a positive relationship between e-wallet usage and effects of e-wallet.
H2: There is a difference between young and old users on the effects of e-wallet.
H3: There is a difference between male and female users on the effects of e-wallet.
H4: There is a difference between low income and high income users on the effects of e-wallet.
3. Methodology
Research Design
This study adopted a quantitative research approach using survey as the data collection technique
with online survey questionnaire as the data instrument. Creswell (2009) argues that quantitative
survey method helps researchers in collecting huge data sets in a short time. Therefore, a Google
form was formed and data collected using a self-administered questionnaire.
Population and Sampling

The population of the current study were student ends of Islamic University Malaysia (IIUM) who
were chosen because of their knowledge of the e-wallet systems, and that they have been actively
participating in buying and making online payments especially during the period of the Pandemic
where they were in a lockdown and not allowed to move out of their university, and therefor
resorted to buying online from e-commerce platforms. This makes them qualified to answer and
question related to e-wallet usage for those who have used it especially during this period.
Therefore, questionnaires were distributed among the students who are constant users of the e-
wallet platforms and systems only in order to collect accurate data for the study.
A sample of 382 responses were collect through a snowball sampling technique where a researcher
is referred by the existing respondents to the potential subjects who are eligible to participate in
the study. Creswell (2009) notes that, a snowball sampling helps the researcher to draw only
respondents that can effectively help in conducting the study at hand, where the researcher also
gains the trust of the participants to the point of them referring them to other potential subjects to
help out in the study.
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Measurement and Instrument

The instrument for collection of data in this paper was online survey questionnaire with google
form. It consisted of three sections. Section 1 featured the demographic statistics of the
respondents, section 2 was on E-wallet usage whereas section 3 was on the effects of E-wallet.
Sections 1 and 2 are the independent variables, whereas section 3 is the dependent variable.
Most of the questions in the study were measured on a 5-point Likert scale of strongly disagree to
strongly agree ranging from 1 to 5 where 1=strongly disagree, 2=disagree, 3=slightly agree,
4=agree, and 5=strongly agree for section 2. For section 3, a Likert scale of not affected at all to
highly affected was used where 1=not affected at all, 2= not affected, 3= slightly affected, 4=
affected, and 5= highly affected. To calculate the overall percentage of an item, the mean score for
the item is multiplied by 20, which is equivalent to 100% if based on the 5-point scale.
Consequently, Wok and Hashim (2014) argue that an overall percentage can be acquired by
multiplying the mean score by 100 and dividing it by 5 to obtain the overall percentage score of
an item.
Some example of items for the usage of e-wallet include “I use e-Wallet for its convenience, it is
efficient, it is able to light my load”. For section 3 on the effects of e-Wallet, items such as “I am
prepared to use e-Wallet more in the future, I priotize things that I want to buy” were used.
Validity and Reliability

A pilot study was carried out before the actual study to measure the reliability of the items and its
flow, as well as any other problems relating to the questionnaire. The questionnaire was approved
by a senior expert in quantitative and measurement studies. Internal reliability test was done to
using the Cronbach’s alpha to indicate the significance and reliability of the items and variables
under study, and whether the constructs exceeds the minimum Cronbach’s alpha value of .70 to
indicate the reliability of the variables. the results from the reliability test indicated that all
variables were reliable because they exceeded the required minimum Cronbach’s alpha of .70.
Data Analysis
The data for the current study will be analyzed using SPSS Version 23 where descriptive and
inferential analyses will be done to test the differences in the e-wallet users and the relationship
among the variables. Descriptive analyses will include frequencies, percentages, means and
standard deviations whereas for inferential analyses, one sample t-test, independent t-test and
Analysis of Variance (ANOVA) will be used to answer the hypotheses of the study.
4. Results and Discussion

Demographic Characteristics of the Respondents
The results below are from the demographic characteristics of the respondents of e-wallet research.
The biggest number of respondents (65.4%) were female compared to (34.6%) who were male.
On the e-wallet user’s age groups, half of the respondents (53.0%) were young people below the
35 years of age where as the rest (47.0%) are above 36 years old and older. The marital status of
the respondents revealed that almost half of them are single (49.6%), followed by 45.1% married
and 5.2% divorced. Majority of the respondents (90.3%) were Malaysians, and (9.7%) were non
Malaysians. On their race, 87.1% were Malay/Bumiputera and (12.9) made up Chinese, Indians
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and others. In addition, for education, 41.2% had a master/Ph.D. degree, followed by 39.1% who
had bachelor’s degree, 39.1% at HSC/STPM/Diploma/Matriculation and lastly, 2.9 had a
primary/secondary educational levels. Also, slightly half of the respondents (57.0%) are from
urban areas and the rest (35.2%) come from suburban and 7.9% come from rural areas.
Table 1: Demographic characteristics of the respondents

Demographic Characteristic Category Frequency Percentage
Gender Male 132 34.6
Female 249 65.4
Total 381 100.0
Young below 35 years 202 53.0
Age 36 years and above 179 47.0
Total 381 100.0
single 189 49.6
Marital status married 172 45.1
divorced/widowed 20 5.2
Total 381 100.0
Nationality Malaysian 344 90.3
Non Malaysians 37 9.7
Total 381 100.0
Race Malay/Bumiputera 332 87.1
Chinese/Indian and others 49 12.9
Total 381 100.0
Master/Ph.D. 157 41.2
Bachelor degree 149 39.1
HSC/STPM/Diploma/Matriculation 64 16.8
Education levels Primary/Secondary 11 2.9
Total 381 100.0
Residential Area urban area 217 57.0
suburban 134 35.2
rural 30 7.9
Total 381 100.0
Employment
For employment statistics, almost half of the users (47.8%) are employed, 33.1% are students, self-
employed and pensioners compose (6.3%) each respectively, and the rest (6.5%) were unemployed
and housemakers/housewives. In regards to the respondent’s personal income, 34.4% fall in the
category of RM5,001 and above, followed by those with no income at all are 28.9%. the ones
between RM1,001-RM5000 (middle income earners) are (28.0%) and 8.7% is for low income
earners below RM1,000. For the respondent’s household income, almost half of the respondents
(45.1%) were low income earners who earn below RM5,000 followed by middle income earners
between RM5,001-RM10,000 (26.6%) and high income earners who are above RM10,001 with
28.1%. The results reveal that, there were low, middle and high income earners both from the
personal income and the household income. However, a considerable number (28.9%) were
noticed to have no income at all from the personal monthly income group.
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Table 2: Employment information of the respondents

Characteristic Category Frequency Percentage
Employed 182 47.8
Employment Status Student 126 33.1
Self-employed 24 6.3
Pensioner 24 6.3
Unemployed 18 4.7
Homemaker/housewife 7 1.8
Total 381 100.0
No income 110 28.9
Personal monthly Income Below RM5,000 140 36.7
Above RM5,001 131 34.4
Total 381 100.0
Less than RM5,000 172 45.1
Total household income RM5,001 – RM10,000 102 26.6
RM10,001 and above 107 28.1
Total 381 100.0
The Level of e-Wallet Usage

One sample t-test was done to measure the level of e-wallet usage and the results show that, seven
in ten of the users (73.5%) have high level of usage with (M = 3.678; SD=1.049) and t-value=
12.618(p=.000). They use e-wallet for convenience (78.6%), any payment (78.0%), preferred
mode of payment (76.3%), flexibility (75.0%) and daily shopping (71.0%). However, using e-
wallet for money transfer (69.8%) and searching for promotional items (65.9%) registered low
levels of responses. The results translate that, much as the two items received low responses, they
remained significant and therefore, the users still have high levels of behavioral usage of e-wallet
because all items are significant.
Table 3: One-sample t-test for e-Wallet Usage
No. e-Wallet Usage M* SD % t** df ρ

1 s6.4.1- I use e-Wallet for convenient purpose. 3.934 1.134 78.6 16.072 380 .000
2 s6.4.2- I always use e-Wallet for any payment 3.900 1.140 78.0 15.409 380 .000
3 s6.4.3- I use e-Wallet as mode of payment. 3.818 1.197 76.3 13.353 380 .000
4 s6.4.4- I use e-Wallet because of its flexible payments 3.753 1.197 75.0 12.280 380 .000
5 s6.4.5- I actively using e-Wallet for online shopping. 3.553 1.291 71.0 8.368 380 .000
6 s6.4.6- I use e-Wallet for easy money transfer. 3.493 1.360 69.8 7.080 380 .000
7 s6.4.7- I check my Smartphone frequently to search
3.296 1.262 65.9 4.586 380 .000
shopping promotion.
Overall mean for e-Wallet Usage (N = 381) 3.678 1.049 73.5 12.618 380 .000
* On a 5-point Likert scale, where 1 = never, 2 = rarely, 3 = sometimes, 4 = often, and 5 = always.
**Test value is 3.
The Level of effects of e-Wallet Usage

One sample t-test was used to measure the level of effects of e-wallet among users. As a whole,
79.6% are highly affected by e-wallet usage with mean of 3.981(SD = 0.855) and t-value of
22.397(p = .000). The users reported that they are affected by e-wallet because, they priotize things
that they want to buy (81.4%), prepared to use e-wallet in the future (81.2%), have to budget for
paying their debts, saving and daily expenses (81.2%), spend with in their limits (80.3%), spend
within their means (80.2%), budget according to religious teachings (76.7%) and careful when
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using e-Wallet to avoid embarrassment of having not enough credit (76.1%). These effects all
received high responses and therefore, they reflect a high level of effects of e-wallet.
Table 4: One-sample t-test for the effects of e-Wallet Usage
No. Effects of e-Wallet M* SD % t** df ρ

1 s8.2:I prioritize things that I want to buy. 4.070 1.047 81.4 19.952 380 .000
2 s8.1:I am prepared to use e-Wallet more in the future. 4.060 1.022 81.2 20.234 380 .000
3 s8.5:I have to budget for paying my debt, for saving,
4.063 0.998 81.2 20.790 380 .000
and for daily expenses.
4 s8.4:I spend within my limits. 4.018 1.086 80.3 18.289 380 .000
5 s8.3:I tend to spend within my means. 4.010 1.038 80.2 18.990 380 .000
6 s8.6:I practice budgeting according to religious
3.837 1.090 76.7 14.986 380 .000
teaching.
7 s8.7:I am more careful when using e-Wallet to avoid
3.808 1.175 76.1 13.424 380 .000
embarrassment of having not enough credit.
Overall mean for effects of e-Wallet (N = 381) 3.981 0.855 79.6 22.397 380 .000
* On a 5-point Likert scale, where 1 = not affected at all, 2 = not affected, 3 = slightly affected, 4 = affected, and 5 =
highly affected.
**Test value is 3.
One-way ANOVA
Age
One-way ANOVA summarized results for effects of e-wallet by age are presented in table 6 below.
the ANOVA results indicate that, F (9, 371) = 3.017, p = .062 with eta squared at ἠ2 = .068. the
results mean that there was no significant difference between effects of e-wallet and age because
the p = value surpassed the minimum significant p = level of p<.05 at .062, meaning, that there
was no significant difference in the user’s age groups and the effects of e-wallet, hence, the results
do not support H1.
Table 5: One-way ANOVA for effects of e-Wallet by age

Source SS df MS F P ἠ2
Between groups 18.953 9 2.106 3.017 .062 .068
Within groups 258.954 371 .698
Total 277.907 380
Personal Income levels

Personal income levels were compared to the effects of e-wallet in a one-way ANOVA test. The
results reveal that, F (6,374) = 0.420, p = .866 and eta squared (ἠ2 = .007). This shows that there
was no statistically significant difference between income levels and the effects of e-wallet. The
p- value is notably not significant at .866. Therefore, it can be argued that, there were no significant
difference between the user’s personal low income levels high income levels on the effects of e-
wallet. Therefore, H2 is not supported.
Table 6: One-way ANOVA for effects of e-Wallet by personal income levels

Between groups 18.858 6 .310 .420 .866 .007
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Total 277.907 380
Household Income levels

For household income levels, results also show that F (10,370) = 1.950, p = .63, with (ἠ2 = .050).
the fact that the p-value also was higher than the minimum required value of p<.05 at .063, it means
that there was no significant difference between the low household income levels and high
household income levels when compared with the effects of e-wallet.
Table 7: One-way ANOVA for effects of e-Wallet by household income levels

Between groups 13.916 10 1.392 1.950 .063 .050
Total 277.907 380
Independent t-test
The study suggests that there is a difference between male and female on the effects of e-wallet.
Therefore, independent t-test is done to measure male users of e-wallet are better than the female
users. Results in table 9 indicate that, male users have higher effects of e-wallet usage with overall
means of 4.030 (SD = 0.781) as compared to their female counterparts who have M= 3.955(SD =
0.892). however, the t-value after the test came out positive .849 although with an insignificant p-
value of .397 which exceeded the minimum p-value of p<.05. The implication of the result is that,
even if the overall means for male are higher than that of the female users, it can still be concluded
that there are no significant differences between the two groups in terms of being affected by e-
Wallet. Therefore, this finding also does not support H3.
Table 8: Independent t-test for effects of e-Wallet by gender

Gender N M* SD t df p
Male 132 4.030 0.781 .849 299.235 .397
Female 249 3.955 0.892
* On a 5-point Likert scale, where 1 = not affected at all, 2 = not affected, 3 = slightly affected, 4 = affected, and 5
= highly affected.
5. Conclusion
In a nutshell, this study composed of 381 respondents who came from the different races,
educational levels and areas of residence. In addition, majority of the participants were Malaysians
female respondents who were had never gotten married. They also had difference levels of income
that included personal as well as household income categorized in low, middle and high income
earners. The users contended that they use the e-wallet platforms because of their convenience,
preferred for all their payments, flexible, used for online shopping, easy for money transfer and
other reasons.
However, on the effects of e-wallet, the users note that they priotize the things they buy, spend
with in their limits, budget according to religious teachings and always budget to pay their debts
as well as planning to use the e-wallet platforms in future. These findings answer research objective
2 that relates to finding out the effects of e-wallet usage among users.
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The findings from this study also reveal that there were no significant differences in the age groups
of the respondents, and the income levels of the users when compared to the effects of e-wallet
usage. Similarly, there was no significant different between male and female users on the effects
of e-wallet usage among users in Malaysia. These findings indicate that hypotheses 1, 2 and 3 are
not supported.
Therefore, it can be inferred that age, gender and income levels have a bearing on the effects of e-
wallet usage in general because of the factors listed above.
Limitations of the Study

The study was limited by the fact that the researchers were never in contact with the respondents
because the questionnaires were distributed via online. Further researches should be able to
incorporate face to face distribution of the questionnaires.
In addition, the theory used in this study was the innovation Diffusion theory. For further
researchers, it is suggested that they try to adopt other theories such as the technology acceptance
model, the theory of planned behaviour and the theory of reasoned action to find out how whether
they can measure the effects of e-wallet usage better than the UTAUT theory.
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The Effects of e-Wallet Among Various Types of Users in Malaysia: A

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Faiswal Kasirye Sm Mahmudul Haq Masum

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The Effects of e-Wallet Among Various Types of Users in Malaysia:

Faiswal Kasirye1*, SM Mahmudul Haq Masum1

*Corresponding Author: Kasirye.faiswal@gmail.com

Keywords: e-Wallet, cashless transactions, innovation diffusion theory, shoppers, technology,

Significance of the Study

Types of Users by Age, Gender and Income Level

Innovation Diffusion Theory

Figure 1: A conceptual framework for effects of e-wallet among users

Hypotheses of the Study

Population and Sampling

Measurement and Instrument

Validity and Reliability

4. Results and Discussion

Table 1: Demographic characteristics of the respondents

Table 2: Employment information of the respondents

The Level of e-Wallet Usage

Table 3: One-sample t-test for e-Wallet Usage

No. e-Wallet Usage M* SD % t** df ρ

The Level of effects of e-Wallet Usage

Table 4: One-sample t-test for the effects of e-Wallet Usage

No. Effects of e-Wallet M* SD % t** df ρ

Table 5: One-way ANOVA for effects of e-Wallet by age

Personal Income levels

Table 6: One-way ANOVA for effects of e-Wallet by personal income levels

Total 277.907 380

Household Income levels

Table 7: One-way ANOVA for effects of e-Wallet by household income levels

Table 8: Independent t-test for effects of e-Wallet by gender

Limitations of the Study

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