What are the types of e-wallets in Malaysia?

08 Jan 2024

Malaysia has seen a considerable increase in digital payment method usage, with e-wallets becoming increasingly popular among customers. Individuals can use these electronic wallets to make transactions both online and offline simply and safely.

In Malaysia, e-wallets can be broadly categorized into two types:

1. Open-loop e-wallets:

These e-wallets are not directly linked to your bank account. You need to top them up with money before you can use them for payments.

They work similarly to prepaid cards and are often used for online and offline purchases at merchants that have partnered with the e-wallet issuer.

Some popular examples include:

GrabPay: Widely used, offers QR code payments, discounts, and rewards.
Touch'n Go eWallet: Convenient for public transportation and toll payments.
Boost: Popular for online shopping and restaurant payments.
BigPay: Offers features like virtual cards and international money transfers.

2. Closed-loop e-wallets:

These e-wallets are typically linked to a specific platform or ecosystem.

You can only use them within that platform or with merchants affiliated with it.

They often offer rewards and benefits specific to the platform they are associated with.

Some examples include:

ShopeePay: Integrated with Shopee e-commerce platform for payments and promotions.
Lazada Wallet: Linked to Lazada online marketplace for purchases and loyalty rewards.
TNG Digital: Works within the Touch'n Go ecosystem for various services.

Additional types:

Bank e-wallets: These are offered by banks and linked directly to your bank account. They allow you to make payments using your phone and often offer additional features like account management and bill payments.

Prepaid e-wallets: Similar to open-loop e-wallets but may have limited functionalities and merchant acceptance.

Choosing the right e-wallet:

Now, we will provide an overview of some of the prominent e-wallets in Malaysia, highlighting their features and benefits.

Boost

Boost is a popular e-wallet in Malaysia, providing many services such as mobile payments, bill payments, and even cashless purchases at partner shops. Boost has grown in popularity because of its user-friendly design and promos that encourage users to make digital payments.

Touch 'n Go eWallet

Touch 'n Go is a well-known Malaysian brand, well-recognized for its contactless cards for toll payments. The Touch 'n Go eWallet now accepts digital payments, allowing users to reload their eWallets, make online purchases, and even pay for public transit.

GrabPay

GrabPay, part of the Grab super-app, has evolved from a ride-hailing service to a comprehensive platform that includes digital payments. Users can link their credit/debit cards or bank accounts to GrabPay, making it convenient for transport services and everyday transactions.

Maybank QRPay

Maybank, one of Malaysia's leading banks, includes QRPay in its mobile banking app. Users can make payments at participating merchants by scanning QR codes. Maybank QRPay works in tandem with the bank's other financial services.

CIMB Clicks

CIMB Clicks, the digital banking platform of CIMB Bank, allows users to perform various financial transactions, including fund transfers, bill payments, and online shopping. While not a standalone e-wallet, it provides a digital platform for convenient financial management.

Razer Pay

Razer Pay, developed by gaming hardware company Razer, has expanded its services to include digital payments. Users can link their e-wallet to their Razer Pay card for offline transactions. Razer Pay also offers features like money transfers and mobile top-ups.

BigPay

BigPay is a digital wallet and prepaid card service offered by AirAsia. While initially focused on facilitating cashless payments for airline services, BigPay has expanded its features to include online transactions, bill payments, and remittances.

Boost e-Wallet

Boost, not to be confused with the previously mentioned Boost, is another e-wallet provider in Malaysia. It offers cell top-ups, bill payments, and cashless transactions at supported businesses to consumers.

Advantages of E-Wallets in Malaysia:

Convenience: E-wallets allow consumers to do transactions with a few touches on their cell phones. This simplicity has contributed to the widespread use of digital wallets in Malaysia.
Promotions and incentives: Many Malaysian e-wallet companies run campaigns and provide benefits such as cashback, discounts, and reward points. These incentives encourage people to utilize digital payment systems and to keep using them.
Security: Security is prioritized in e-wallets through features such as biometric identification, PINs, and encryption. Users can be certain that their financial information is secure throughout transactions.
Integration with other services: Some e-wallets, like GrabPay and BigPay, have expanded their services beyond payments. They integrate with other platforms, providing users with a holistic digital experience.
Reduced dependency on physical cash: E-wallets contribute to Malaysia's ongoing efforts to reduce reliance on physical cash, promoting a more cashless society.

Why use PayCEC for E-Wallet transactions

While the e-wallets mentioned above cater to individual consumers, businesses can benefit from offering a variety of payment options, including e-wallets, to their customers. PayCEC, as a comprehensive payment gateway, supports various payment methods, including major credit and debit cards, popular e-wallets, and alternative payment options.

Advantages of integrating PayCEC for E-Wallet transactions

Versatility: PayCEC supports a diverse range of payment methods, ensuring that businesses can cater to the preferences of their customer base. This payment gateway includes major e-wallets, providing a convenient option for users who prefer digital wallets.
Advanced Security Measures: Security is a top priority for PayCEC. The platform employs advanced encryption technologies to secure transactions and protect sensitive information, instilling confidence in businesses and customers.
User-friendly & 24-hour fast integration: Integrating PayCEC into websites is simple. PayCEC helps firms who operate e-commerce websites, smartphone apps, or other digital services improve their payment processing capabilities. Additionally, the platform provides a rapid 24-hour integration solution designed to assist businesses in smoothly integrating, activating, and being ready to accept client payments within a single day.
Global Expertise with Local Understanding: PayCEC combines global payment solutions expertise with in-depth knowledge of local markets, ensuring that businesses receive a payment gateway solution that fulfills international standards as well as the unique needs of the Malaysian market.

As Malaysia embraces the digital revolution of its financial environment, e-wallets will play a critical role in influencing the future of payments. Businesses can reap the benefits of this transformation by not just accepting e-wallet payments, but also by providing a variety of payment methods to accommodate their consumers' different preferences.

We encourage Malaysian businesses to investigate the capabilities and benefits that PayCEC provides, which facilitate frictionless transactions and contribute to a more efficient and dynamic digital payment ecosystem. Go online with PayCEC today to propel your company to new heights in the ever-changing field of digital payments.