AFW272/AFW362 MANAGEMENT OF FINANCIAL INSTITUTION,
MARKET & DIGITAL INNOVATION
TITLE: E-WALLET USAGE AMONG UNIVERSITY STUDENTS
LECTURER: DR. EMA IZATI ZULL KEPILI
Name
Matric no
Contact Number
Email
1. LEE SWEE YI
151521
+6016-3621910
tracylsy0708@gmail.com
2. WANG YI YE
150064
+601123322502
zoeywang422@gmail.com
TABLE OF CONTENTS
TITLE
ABSTRACT
1.0 INTRODUCTION
2.0 REVIEW
3.0 METHODOLOGY
4.0 FINDINGS
PAGE
3
4-5
6
7-9
10-26
5.0 CONCLUSION
27
REFERENCES
28
APPENDIX A – SAMPLE QUESTIONNAIRE
APPENDIX B – DEMOGRAPHIC PROFILE
APPENDIX C – USAGE FREQUENCY
APPENDIX D – USAGE SATISFACTION
29-36
ABSTRACT
With the rejuvenation of the population structure and the strong consumer demand, there is a
huge market space for investment and development in the Internet finance industry
dominated by electronic wallets. This paper analyses and studies the use of e-wallets by
Malaysian university students in the form of questionnaires with 50 respondents, mainly
aiming at the preference and satisfaction of Malaysian university students with e-wallets.
Furthermore, this paper takes the form of a descriptive study, which conveys the deeper
meanings and ideas found in the study of E-wallet usage among university students. The
result indicates that most respondents use e-wallets several times a week, with years of
experience of fewer than 3 years, and Touch'n go e-wallet has become the most frequently
used e-wallet application by respondents. Respondents' satisfaction with e-wallets is also
quite high, with more than half of respondents saying they will continue to use e-wallets in
the future.
Keywords: E-wallet, Fintech， usage intention, university students， descriptive study
1.0 INTRODUCTION
E-wallet-based financial technology is an emerging financial industry developed by relying
on the innovation of Internet technology. Emerging financial technology has advantages that
traditional finance does not have. Malaysia is one of the countries with the largest economy
in Southeast Asia and one of the most active markets in the Internet economy. Due to
Malaysia's large population base, young population structure, and high consumer demand,
there is still huge room for the development of fintech mainly based on e-wallets in Malaysia.
The younger generation is the main force in e-wallet usage, so this study focuses on
Malaysian university students. We conduct research and analysis on the usage scenarios,
frequencies, and preferences of electronic wallets among Malaysian college students through
online questionnaires. Since e-wallets are the most iconic product of the development of
fintech in Malaysia, the deeper purpose is to analyze and speculate on the future development
of fintech using e-wallets in the younger generation.
1.2 The development background of e-wallet-based fintech in Malaysia
Emerging stage
With the development of the digital economy era, changes in the structure of Malaysia's real
economy have created new demands for financial services. Because Malaysia has a good
high-tech industry foundation, basically masters digital technology, and has the technological
innovation ability to develop electronic wallets, it has become the main follower of financial
technology innovation in Southeast Asia.
Mature stage
After a period of development in Malaysia, the fintech field dominated by e-wallets has
attracted more and more foreign investors to invest in the fintech field in Malaysia, which has
attracted the attention of the national financial regulatory authorities. Since 2016, the
Malaysian fintech regulatory authority has vigorously reformed and formulated new
regulations to incorporate fintech into the regulatory system, only to better encourage the
development of fintech. In 2017, Alibaba Group, a leading Chinese digital economy company,
announced the joint construction of a digital free trade zone with Malaysia. Subsequently, the
Malaysian fintech sector entered a period of maturity.
Rising stage
Since the Malaysian Finance Minister mentioned in his Budget 2020 speech the four
priorities of Malaysia's budget, the first priority is to drive economic growth in the new
economy and the digital age. According to Bank Negara Malaysia's blueprint for the financial
sector, Malaysia is moving towards a complete shift to electronic payment processes and
becoming a cashless society. We have a deep understanding of this point. In the current
Malaysian society, electronic wallet payment methods have almost become popular in
people's lives. Most merchants provide a variety of electronic wallet payment methods for
customers to use.
2.0 REVIEW
In the days of information and network, e-wallets will be the trend of the world to promote a
cashless society. Numerous scholars have conducted extensive research on the adoption of ewallets among citizens in certain countries. However, these studies are predominantly
focused on factors that influence the public's intention to use e-wallets and lack relevant
research on a specific group. The chapter reviews the key literature concerned with e-wallet
usage among university students. This review critically evaluates university students'
acceptance, satisfaction, and continuous use of e-wallets in a bid to address the gap. This
chapter begins with the importance of investigating e-wallet usage among university students,
research scope, and research gap. This is followed by a previous study conducted by another
researcher. Finally, conclude on the current research’s results, limitations of the study, and
suggestions for future study.
Most research on the adoption of e-wallets has been carried out in regression analysis to
investigate the relationships between rewards, perceived risk, perceived usefulness, perceived
ease of use, and intention to use an e-wallet. According to Dimirguc-Kunt and Klapper
(2012), e-wallets enable many unbanked people to involve in the financial system with
minimal cost and reliability. The previous study by Kendall et al (2012) mentioned that using
e-wallets for real-time transfers will receive notifications immediately after the transaction,
which greatly enhances user confidence and improves savings and payment behavior.
Overall, these studies highlight the need for e-wallets in daily life. Considering all of this
evidence, it seems that the emergence of e-wallets provides consumers with an additional
payment option and becomes an indispensable part of daily life. However, such studies
remain narrow in focus dealing only with factors influencing the adoption of e-wallets. There
remain several aspects of the statistic of e-wallet usage about which relatively little is known.
A more systematic and theoretical analysis is required for a future researcher. One of the
tough challenges for all researchers in this domain is inaccurate data by using a questionnaire
to collect data. A new approach is therefore needed for a more reliable and valid data
collection process. Future research can continue from the perspective of the impact of ewallets.
3.0 METHODOLOGY
3.1 Introduction
The main objective of the methodology is to explain the research procedure or method that
has been used to conduct a study and investigate the research problem. The content of this
chapter includes the research paradigm, data collection techniques, survey instruments,
research setting, research design, and analysis techniques.
3.2 Research Setting
The research setting in this research is interpreted as the location where the data was
collected. The research setting for the study is examining E-wallet usage among university
students. Similar to other countries, e-wallets have become popular in Malaysia because ewallets have brought a lot of convenience to people, which inspires people to use e-wallets.
Thus, the data for this study were collected from university students of different ethnicities,
nationalities, and years of study in Malaysia. This population was chosen as e-wallets are not
limited to the user's ethnicity, nationality, and year of study. It means that e-wallets are
available to all university students in Malaysia.
3.3 Research Paradigm
Qualitative is known as a recognized method for conducting this research and then the
interpretative paradigm will be chosen automatically. It is based on the naturalistic approach
to data collection. According to the interpretative paradigm, the research is considered to
understand people’s experiences. This study attempts to investigate usage frequency and
usage satisfaction of respondents on e-wallet applications to explain the usage intention of ewallet applications for university students in Malaysia.
3.4 Research Design
3.4.1 Type of Study
This study is a descriptive study. A descriptive study is a study that expresses features of a
phenomenon, situation, and population. It does not reply to the questions related to how, why,
and when but it answers the questions on what (Shields P. N., 2013). The target population of
this study is university students in Malaysia. This study aims to examine the usage of ewallets among university students in Malaysia.
3.4.2 Nature of Study
The study is conducted in a natural environment. A natural environment also refers to a noncontrived setting where all the data collected are neither controlled nor manipulated. This is a
descriptive study where we spent over two weeks collecting data through Google form.
3.4.3 Unit of Analysis
In this study, the unit of analysis is individuals who are university students in Malaysia.
3.4.4 Research Site
The research sites for this study are individuals who are studying in universities of Malaysia.
3.5 Data Collection Techniques
We collected the data through questionnaires. The questionnaires were distributed to
undergraduates through Google Form via the internet. All the respondents are university
students in Malaysia. The questionnaire provided a convenient way for respondents to make
estimations and also provided useful information for our research.
3.6 Survey Instruments
The questionnaire consists of three parts, which are demographic profile, usage frequency,
and Likert scale questions. Demographic profile and usage frequency involve nominal
variables that help the researcher to understand the background of the respondents and the
usage frequency of e-wallet applications. Likert scale questions use interval scales to
investigate the usage satisfaction among the respondents and measure their level of usage
intention. In this research, a 7-point Likert scale will be used with increasing levels of
agreement.
1
2
3
4
5
6
7
Strongly
disagree
Disagree
Slightly
disagree
Neutral
Slightly
agree
Agree
Strongly
agree
3.7 Analysis Techniques
Descriptive analysis is adopted in the study to analyze the responses obtained from the
respondents through the distribution of questionnaires. Analysis techniques are used to
interpret the data.
3.7.1 Descriptive Analysis
Descriptive analysis is conducted to understand the respondent’s profile and gives a view of
the distribution of the data.
3.7.2 Frequency Measurement
Frequency measurement is a part of descriptive analysis and an important area that shows the
number of occurrences and measures the central tendency. Frequencies and percentages will
be used to present the profile of the respondents such as gender, age, ethnicity, nationality,
year of study, usage frequency of e-wallet apps, year of experience in using e-wallet apps,
and type of the e-wallet apps in using.
3.7.3 Central Tendency Measurement
According to Weisberg (1992), a central tendency is a central or typical value for a
probability distribution. The central tendency can be measured by using 3 averages which are
mean, median, and mode. In our study, the mean has been used to evaluate the user
satisfaction of the respondents.
4.0 FINDINGS
Demographic Profile
Figure 1: Gender of respondents
Figure 2 : Age of respondents
There were 50 participants in this sample. According to figure 1 and 2 above, the proportion
of females participating in this questionnaire survey is 66% (33), and the proportion of males
is 34% (17). In terms of age distribution, 43 (86%) of respondents were 18 to 24 years old,
and 7 (14%) were 25 to 34 years old. There are no respondents are from the age group which
is 35 years old and above.
Figure 3: Ethnicity of respondents
According to the above picture, the ethnicity of the respondents is 27 (54%) Chinese, 14
(28%) Malays, 8% Indians, and 5 (10%) respondents are Dusun, Iban, Kenya, and Sabah
Bumiputera.
Figure 4: Nationality of respondents
According to the chart above, 42 (84%) of the respondents are Malaysian and 8(16%) are
from China.
Figure 5: Year of study of respondents
According to the above figure, the respondents who participated in this questionnaire were
mainly first-year university students, accounting for 20 (40%). Second-year students
accounted for 17 (34%), third-year students accounted for 5 (10%), PhD students accounted
for 2 (4%), fourth year and master students accounted for 3 (5%) each.
Usage Frequency
Figure 6 : Frequency of using e-wallet for respondents
According to the above chart, 18 (36%) of respondents said they use e-wallets a few times a
week in their daily life, and 13 (26%) respondents said they use e-wallets once or twice a
month. 11 (22%) respondents said they use their e-wallets almost every day, and 6 (12%) said
they use their e-wallets once a week. Another 2 (4%) of respondents use e-wallet not even
once a month. From this point of view, most of the respondents have the experience of using
electronic wallets, but the frequency of use is not high.
Figure 7: Years of experience in using e-wallet for respondents
According to the chart, 31 (62%) of the respondents have 1 to 3 years of experience in using
electronic wallets, and 11 (22%) of respondents have used electronic wallets for less than one
year. 4 (8%) of respondents have used e-wallets for 4 to 6 years, and 4 (8%) have used ewallets for more than 6 years. The vast majority of respondents have more than one year of
experience in using electronic wallets, which reflects the development of electronic wallets
with a certain amount of time accumulation.
Figure 8: Type of e-wallet application used by respondents
As shown in the chart above, the respondents who use Touch’n go the most, accounting for
19 (38%). Followed by the use of Grab pay, accounting for 12(24%). 9 (18%) of respondents
use MAE and 6 (12%) use boost. There are also a small number of respondents who use
Shopee pay and WeChat pay which are accounted 3 (6%) respondents. From this point of
view, Touch’n go is the most popular e-wallet among the respondents.
Usage Satisfaction
Figure 9: I find E-wallet apps useful in my daily life
According to the figure, ,29 (58%) of the respondents strongly agree that they find that ewallet apps are useful in their daily life and only 1 (2%) respondent is neutral on this. 10
(20%) of the respondents are slightly agreed and agree respectively on the question. The
mean is 6.34 indicating that the respondents agree that e-wallet apps are useful in their life on
average.
Figure 10 : Using E-wallet increases my chances of online shopping that are important to me
Based on the Figure 10, 3 (6%) of the respondents disagree that using an e-wallet increases
their chances of online shopping which are important to them and only 1 (2%) respondent
slightly disagree on this. 7 (14%) of the respondents are neutral and 21 (42%) of the
respondents are strongly agree on the question. 9 (18%) of the respondents slightly agreed
and agreed respectively on the question. The mean is 5.66 shows that most of the respondents
slightly agree that using an e-wallet increases their chances of online shopping that are
important to them.
Figure 11: Using E-wallet can reduce the threat posed by covid-19
Regarding the Figure 11, one (2%) of the respondent strongly disagreed, disagree, and
slightly disagree respectively they are using e-wallets to reduce the threat posed by covid-19.
3 (6%) of the respondents are neutral and 5 (10%) of the respondents slightly agree with the
question. 7 (14%) of the respondents agree and 32 (64%) of the respondents strongly agree
with the statement. The mean is 6.18 means that the majority of the respondents agree that
using e-wallets can reduce the threat posed by covid-19.
Figure 12: Using E-wallet apps enables me to accomplish the purchasing process more
quickly
From the chart above, up to 26 (52%) of the respondents strongly agree that using e-wallet
apps enables them to accomplish the purchasing process more quickly and 15 (30%) of the
respondents agree with this. 8 (16%) of the respondents slightly agreed and only 1 (2%) of
the respondents disagreed with the question. The mean is 6.28 reveals that the respondents
agree that the purchasing process becomes quick if using e-wallet apps.
Figure 13: Using E-wallet brings convenience to my daily life
According to the Figure 13, Only 1 (2%) respondent is neutral and 9 (18%) of the
respondents slightly agree that using an e-wallet brings convenience to their daily life. 12
(24%) of the respondents agree and 28 (56%) of the respondents strongly agree with the
statement. The mean is 6.34 indicating that the respondents agree that using e-wallets brings
convenience to their daily life.
Figure 14: E-wallet is easy to use
Based on the figure above, only 1 (2%) respondent is neutral and 9 (18%) of the respondents
slightly agree that e-wallet is easy to use. 12 (24%) of the respondents agree and 28 (56%) of
the respondents strongly agree with the statement. The mean is 6.34 shows that the
respondents agree that e-wallet is easy to use.
Figure 15: I feel comfortable using E-wallet apps for purchasing goods
As shown in the figure above, only 1 (2%) respondent slightly disagreed, 4 (8%) of the
respondents are neutral and 8 (16%) respondents are slightly agreeing that they feel
comfortable when using e-wallet apps for purchasing goods. 13 (26%) respondents are
agreeing, and 24 (48%) respondents strongly agree with the statement. The mean is 6.1
reveals that most of the respondents agree with that on average.
Figure 16: I am satisfied with using E-wallet in my daily life
From Figure 16, 4 (8%) of respondents are neutral, and 7 (14%) respondents are slightly
agreeing that they are satisfied with using e-wallets in their daily life. 15 (30%) respondents
are agreeing, and 24 (48%) respondents strongly agree with the statement. The mean is 6.18
representing most of the respondents agree that they are satisfied with using e-wallets in their
daily life.
Figure 17: Purchasing goods through E-wallet is almost like a habit for me
Based on the Figure 17, only 1 (2%) respondent strongly disagree, and 2 (4%) respondents
are disagreeing that purchasing goods through an e-wallet is almost like a habit for them. 6
(12%) respondents slightly disagree, 7 (14%) respondents are neutral, and 9 (18%)
respondents slightly agree on the question. 11 (22%) respondents are agreeing, and 14 (28%)
respondents are strongly agreeing with the statement. The mean is 5.2 reflects that the
respondents slightly agree that using e-wallets to purchase goods is a habit for them on
average.
Figure 18: I will use E-wallet if my family and friends are also using it
According to the figure above, 2 (4%) respondents strongly disagreed, disagree, and slightly
disagree respectively that they will use an e-wallet if their family and friends are also using it.
4 (8%) respondents are neutral, and 12 (24%) respondents slightly agree with the statement.
10 (20%) respondents are agreeing, and 18 (36%) respondents strongly agree with the
question. The mean is 5.48 shows that most of the respondents slightly agree that they will
use an e-wallet if their family and friends are also using it.
Figure 19: I will continue to use E-wallet in the future
From Figure 19, 2 (4%) respondents are neutral, and 6 (12%) respondents slightly agree that
they will continue to use e-wallet in the future. 11 (22%) respondents are agreeing, and 31
(62%) respondents strongly agree on the statement. The mean is 6.42 means the respondents
agree that they will continue to use e-wallets in the future on average.
5.0 CONCLUSION
In conclusion, the purpose of the current study was to determine the statistic and satisfaction
of university students in using e-wallets. One of the more significant findings to emerge from
this study is that more than half of respondents have less than 3 years of experience with ewallet reveals that e-wallet has only become popular in recent years and the most commonly
used e-wallet application for respondents is Touch 'n Go. In addition, the majority of the
respondents are satisfied with using the e-wallet application and indicate the intention to
continue using the e-wallet app in the future. The current data highlight the importance of ewallets to university students, feedback on e-wallet apps, and explore the tendency of
university students to continue to use e-wallets in the future. The insights gained from this
study may be of assistance to e-wallet service providers to understand university students'
requirements for e-wallet to improve their satisfaction.
The major limitation of this study is the sample size is too small. In this research, only 50
respondents were unable to completely reflect on the statistics of current university students
using e-wallets. Sample size too small may cause it difficult to decide whether the results are
true results and could it represent the usage of e-wallets among the majority of university
students. In addition, small sample size may reduce the power of the research and improve
the margin of error which may cause the research meaningless. Several questions remain to
be answered. More broadly, research is also needed to determine the impact of the emergence
of e-wallets on consumers or the benefits and risks of using e-wallets.
REFERENCES
Bryman, A. and Bell, E., 2015.Business Research Methods. Oxford: Oxford University.
Blaikie, N., 2013.Designing Social Research. Cambridge: Polity Press.
Duignan, J., 2016.A Dictionary Of Business Research Methods. Oxford: Oxford University
Press.
Demirguc-Kunt A. and Klapper L. (2012), Financial Inclusion in Africa: An overview.
Policy Research Working Paper 6088. World Bank.Database’, World Bank, Washington, DC.
Kendall, J., Godoy, J., Tortora, D.R. & Sonnenschein, J. 2012. Payments and money transfer
behaviour of Sub-Saharan Africans. Development Economics: Macroeconomic Issues in
Developing Economies, E journal, 2012
Saunders, M., Lewis, P. and Thornhill, A., 2019.Research Methods For Business Student. 8th
ed. Harlow: Pearson.
Shields, Patricia and Rangarajan, N. 2013. A Playbook for Research Methods: Integrating
Conceptual Frameworks and Project Management. Stillwater, OK: New Forums Press. See
Chapter 4 for an in-depth discussion of descriptive research.
Weisberg H.F (1992) Central Tendency and Variability, Sage University Paper Series on
Quantitative Applications in the Social Sciences, ISBN 0-8039-4007-6 p.2
APPENDIX A – SAMPLE QUESTIONNAIRE
Gender
● Male
● Female
Age
● 18-24
● 35 and above
● 25-34
Ethnicity
● Malay
● Indian
● Chinese
Nationality
● Malaysian
● Other
What year are you in?
● 1
● 4
● 2
● Master
● 3
● PhD
How often do you use E-wallet in your daily life?
● Almost every day
● Once or twice a month
● Few times a week
● Not even once a month
● Once a week
How many years of experience using E-wallet?
● Less than 1 year
● 4-6 years
● 1-3 years
● More than 6 years
Which E-wallet application do you use?
● Touch'n go
● MAE
● Boost
● Other
● Grab pay
I find E-wallet apps useful in my daily life.
1 2 3 4 5 6 7
Using E-wallet increases my chances of online shopping that are
1 2 3 4 5 6 7
important to me.
Using E-wallet can reduce the threat posed by covid-19
1 2 3 4 5 6 7
Using E-wallet apps enables me to accomplish the purchasing process 1 2 3 4 5 6 7
more quickly.
Using E-wallet brings convenience to my daily life
1 2 3 4 5 6 7
E-wallet is easy to use.
1 2 3 4 5 6 7
I feel comfortable using E-wallet apps for purchasing goods.
1 2 3 4 5 6 7
I am satisfied with using E-wallet in my daily life.
1 2 3 4 5 6 7
Purchasing goods through E-wallet is almost like a habit for me.
1 2 3 4 5 6 7
I will use E-wallet if my family and friends are also using it.
1 2 3 4 5 6 7
I will continue to use E-wallet in the future.
1 2 3 4 5 6 7
APPENDIX B- DEMOGRAPHIC PROFILE
Gender
Age (years old)
Ethnicity
Nationality
Year of study
Frequency
Percentage
Male
17
34%
Female
33
66%
18-24
43
86%
25-34
7
14%
35 and above
0
0
Malay
14
28%
Chinese
27
54%
Indian
4
8%
Other
5
10%
Malaysian
42
84%
Other
8
16%
1
20
40%
2
17
34%
3
5
10%
4
3
6%
Master
3
6%
PhD
2
4%
APPENDIX C- USAGE FREQUENCY
Frequency of using
Frequency
Percentage
Almost every day
11
22%
Few times a week
18
36%
Once a week
6
12%
Once or twice a month
13
26%
Not even once a month
2
4%
Less than 1 year
11
22%
1-3 years
31
62%
4-6 years
4
8%
More than 6 years
4
8%
Touch’n go
19
38%
Boost
6
12%
Grab pay
12
24%
MAE
9
18%
Other
3
6%
e-wallet
Year of experience
Type of e-wallet
application used
APPENDIX D- USAGE SATISFACTION
Question
Strongly Disagree
Slightly
Disagree
Disagree
(2)
(1)
I find Ewallet
apps
Neutral Slightly
(4)
(3)
Agree
Agree
(6)
0
0
1
(0%)
(0%)
(0%)
(2%)
0
3
1
(0%)
(6%)
1
(2%)
Mean
Agree
(7)
（5）
0
Strongly
10
10
29
(20%)
(20%)
7
9
9
21
(2%)
(14%)
(18%)
(18%)
(42%)
1
1
3
5
7
32
(2%)
(2%)
(6%)
(10%)
(14%)
(64%)
6.34
(58%)
useful in
my daily
life.
Using Ewallet
increases
5.66
my
chances
of online
shopping
that are
importan
t to me.
Using Ewallet
can
reduce
the
threat
posed by
6.18
covid-19
Using Ewallet
apps
0
1
0
0
8
15
26
(0%)
(2%)
(0%)
(0%)
(16%)
(30%)
(52%)
0
0
0
1
9
12
28
(0%)
(0%)
(0%)
(2%)
(18%)
(24%)
(56%)
0
0
0
1
9
12
28
(0%)
(0%)
(0%)
(2%)
(18%)
(24%)
(56%)
6.28
enables
me to
accompli
sh the
purchasi
ng
process
more
quickly.
Using Ewallet
brings
6.34
convenie
nce to
my daily
life
E-wallet
is easy to
use
6.34
I feel
comforta
ble using
0
0
1
4
8
13
24
(0%)
(0%)
(2%)
(8%)
(16%)
(26%)
(48%)
0
0
0
4
7
15
24
(0%)
(0%)
(0%)
(8%)
(14%)
(30%)
(48%)
1
2
6
7
9
11
14
(2%)
(4%)
(12%)
(14%)
(18%)
(22%)
(28%)
2
2
2
4
12
10
18
(4%)
(4%)
(4%)
(8%)
(24%)
(20%)
(36%)
6.1
E-wallet
apps for
purchasi
ng
goods.
I am
satisfied
with
6.18
using Ewallet in
my daily
life
Purchasi
ng goods
through
5.2
E-wallet
is almost
like a
habit for
me.
I will use
E-wallet
if my
family
and
friends
5.48
are also
using it
I will
continue
to use Ewallet in
the
future
0
0
0
2
6
11
31
(0%)
(0%)
(0%)
(4%)
(12%)
(22%)
(62%)
6.42