With the advent of new technologies being developed, many consumers are now choosing electronic wallets containing virtual currency for their purchases. What is not known to many is that electronic wallets, or e-wallets for short, have existed for quite some time, having been around for more than the past 2 decades. However, it is only in recent times
that it has caught traction and gained popularity.

Simply put, an e-wallet payment system uses digital currency that is bound to real currency. They mostly function the same way, that is when an e-wallet payment method is used, instructions are sent for the transfer of actual money from either the user’s bank account, or an amount pre-loaded by the user into their e-wallet account, to the merchant whose goods and/or services they are procuring. No longer does cash need to be the monetary instrument of choice for transactions, eliminating the need for visits to the ATM, or indeed, even the need to carry cash around.

In Malaysia, there are currently 3 main e-wallet operators (along with many other smaller players), namely Grab, Boost, and Touch n’ Go. Each operator has differing pros and cons, such as ease of use, acceptance rates, as well as their own offers and promotions for different merchants.

For the merchant, there will be less physical cash that they will need to handle, but also they will not receive the funds immediately after a transaction, with the typical case taking 3 days to clear the float. The rate of merchants adopting e-wallets was slow at first, with many merchants hesitant to jump onboard, but that hurdle has since been cleared.

The number of merchants adopting e-wallet payment gateways in Malaysia as an accepted method of payment is steadily increasing. In fact, a study by MasterCard in 2020 has shown that Malaysia is leading South East Asian countries in e-wallet payment solutions acceptance and usage.

Safety and security of e-wallet payment systems in Malaysia

As with all new and unfamiliar technologies, there will be those who wonder and question   its safety. The Central Bank of Malaysia heavily regulates electronic wallet payment operators by imposing stringent security requirements on them. The fact that floating funds yet to be paid to the merchant need to be within a trust account prevents e-wallet operators from using said funds for investment and risk losing it all.

Many experts within the field are of the opinion that digital currency within an e wallet is safer than carrying physical cash within your wallet. This is owing to the fact that it would be far harder for a hacker to penetrate all security measures put into place than a robber simply snatching your wallet out of your hands.

Using an e-wallet payment method in physical stores

Most examples of mobile wallet payment solutions today exist as an application on a smartphone, with transactions conducted via the scanning of QR Codes. They are either static, neverchanging, and displayed by the merchant somewhere near the cash register for the user to scan via their smartphone’s camera; or dynamic, with a new one being generated within the application for the merchant to scan.

The scanning process is reasonably quick, being far faster than pulling cash out of the wallet, but still not as fast as a wave of a credit or debit card. It is also dependent on a connection to the internet, so a user is unable to use their e-wallet should their smartphone lose its connection, or has no access to the internet.

For a merchant, the process of registering your outlet to begin accepting e-wallets as a mode of payment is just as simple. You will be asked to provide information related to your company, after which a background check may be performed by the e-wallet service provider. A payment terminal will then be provided, or the application may be installed on a merchant’s existing payment terminal. It is even possible to integrate the use of an e-wallet into the checkout page of a merchant’s own application or website.

Why choose us?

EOS Systems provides an all-in-one terminal that can process transactions using not just debit and credit cards of most major card schemes (Visa, MasterCard, MyDebit, UnionPay), but also e-wallets.

As of the writing of this article, only GrabPay is supported, but Touch n’ Go, Boost, and other e-wallets are within the planned pipeline. With competitive merchant discount rates and a team behind it all that works on continuously improving on all aspects of services provided, we look forward to having the pleasure of working with you.