Bridging the Gap in E-Wallet Payment Adoption: Factors Affecting Consumer Satisfaction and Trust in Malaysia

Digital wallets, a by-product of technological advancements, have played a pivotal role in the rise of digital transactions. The global adoption of platforms such as PayPal, Google Pay, Apple Pay, and Samsung Pay has contributed to market fragmentation and the diversification of portfolio models. The sector continues to expand, with the global e-wallet market projected to grow at a CAGR of 15%, potentially reaching $2.1 trillion by 2023 (Ali & Kamal, 2023). Malaysia hosts over 50 e-wallet providers, with Touch 'n Go dominating the market—92% of e-payment users preferred it as of October 2022, followed by GrabPay (51%) and Boost (36%) (Suraya, 2023). In the same year, e-money transactions reached nearly 70 billion Malaysian ringgit (Statista, 2023). Established in 1997, Touch 'n Go remains Malaysia's leading e-wallet, widely used for toll payments, public transport, and parking (Touch 'n Go, 2022). The digital payments sector is rapidly expanding, with transaction values surpassing $20 billion in 2022 and projected to reach $200 billion by 2025. The Malaysian government's MyDigital plan (2021) aims to accelerate the transition to a digital economy by 2030, integrating e-payment options across ministries and government agencies. This transformation is supported by 95% 4G LTE coverage, enabling seamless digital transactions (MCMC, 2022; Statista, 2023). The shift to cashless payments is evident, with cash being phased out in certain areas like parking facilities (Chan, 2018). However, limited internet connectivity remains a challenge, affecting e-wallet usability (Finance Magnates, 2023). Despite growing internet penetration, many consumers still prefer cash, cheques, and cards, citing concerns over security and benefits (MCMC, 2022; Gomes, 2022). JEL Codes: G23, O33, L86 Keywords: E-Wallet, Digital Payment System, Usefulness, Trust, Security, Consumer Satisfaction.