Study: Gen Y going cashless

A RECENT research conducted by Assoc Prof Dr Wong Chee Hoo from the Faculty of Business and Communication at INTI International University revealed that Generation Y, aged between 22 and 38, are active users of digital wallets.

“Our study shows that age is an influencing factor in the use of ewallets among Malaysians,” said Wong.

His research also stated that ewallet transactions rose to an average of 25% in the wake of the Covid-19 pandemic, indicating that consumers will continue to use digital payments due to convenience.

“Although the digital wallet has existed for over 20 years, it’s only within the last decade that it has rapidly evolved, revolutionising the way we search and pay for goods and services,” said Wong in his research paper, adding that it was not intensively used in Malaysia until the pandemic hit in 2020.

According to Wong and his team of researchers at INTI, ewallets can also be used to store identification documents or digital rewards, tickets, boarding passes and room keys, eliminating the need to carry around a physical wallet.

Using biometric recognition and data encryption, these digital wallets are not only convenient, but also give users a greater sense of control and security.

“The pandemic and enforcement of movement control orders in Malaysia boosted the adoption of ewallets as the situation drove the need for cashless payments due to new shopping preferences. He added that there are 32 million citizens in this country but 10 million Malaysians do not utilise online banking and another two million do not even have a bank account.

“We hope that the recent introduction of certain policies in the country pertaining to online banking and digital payments will excite these groups of people to engage in the ewallet payment system.”

Wong also pointed out that while young adults in Malaysia use these ewallet applications more frequently compared to senior citizens, the older generation is slowly adapting to the ewallet culture lately as they embrace the cashless culture.

He said senior citizens need to be reminded that ewallets are not banking accounts, but allow consumers to carry out sales and purchase transactions at the point of sale.

“As ewallets are viable even at the traditional local market, more awareness and incentives should be introduced to attract more users, not just the young and tech-savvy ones.

“With a little push from the government, ewallet providers and banks will boost adoption, even among smaller businesses and roadside stalls. It will be one of the strategic tools to achieve greater economic efficiency, productivity and growth as Malaysia transitions towards a high value-added and high-income economy,” he said.