Abstract

The aim of this research is to explore the factors contributing to excessive spending behavior among young adults using e-wallet payment methods. The digital economy has revolutionized business operations and daily life, with a global trend towards cashless transactions via electronic media. However, the long-term sustainability of mobile e-wallet users remains uncertain.

There is no guarantee that these new mobile e-wallet users will continue to utilize mobile e-wallet payments once incentives expire or the pandemic subsides. Therefore, this research seeks to uncover Malaysian consumers’ true intentions for adopting e-wallets and identify factors influencing excessive spending behavior among young adults. To achieve this, 80 questionnaires were gathered from young adults using a convenience sampling method. Additionally, quantitative data analysis will be performed using the SPSS program to test the research hypotheses, including descriptive analysis, correlation analysis, and multiple regression analysis.

Abstrak (BM)

Tujuan kajian ini adalah untuk menyiasat faktor-faktor yang mempengaruhi tingkah laku penggunaan berlebihan golongan muda menggunakan kaedah pembayaran e-dompet. Ekonomi digital telah mengubah cara individu menjalankan perniagaan dan hidup. Trend global ke arah masyarakat tanpa tunai ialah transaksi tanpa tunai melalui media elektronik. Walau bagaimanapun, daya maju jangka panjang pengguna e-dompet mudah alih boleh dipersoalkan. Tiada jaminan bahawa pengguna dompet mudah alih baharu ini akan terus membayar dengan dompet mudah alih selepas insentif habis atau wabak berlalu.

Oleh itu, kajian ini bertujuan untuk mengetahui niat sebenar pengguna Malaysia untuk mendaftar untuk e-dompet dan mengenal pasti faktor yang mempengaruhi tingkah laku berbelanja berlebihan golongan muda. Oleh itu, kajian ini mengumpul 80 soal selidik daripada golongan dewasa muda dengan kaedah persampelan mudah. Selain itu, analisis data kuantitatif akan dilakukan oleh program SPSS untuk menguji hipotesis kajian, dan analisis deskriptif, analisis korelasi dan analisis regresi berganda akan dilakukan ke atas data yang dikumpul menggunakan perisian SPSS.

Introduction

This opening chapter provides an overview of the study, including the background, problem statement, research questions, research objectives, significance, and scope of the study.

Background of the Study

Smartphones have revolutionized daily life by providing touchscreen capabilities, internet browsing, and software functionality similar to computers or laptops. Among the various tasks performed by smartphones, e-wallet usage stands out. E-wallets allow users to make cashless transactions, purchase goods and services, and conduct secure transactions without physical money by scanning QR codes, and they are widely used worldwide. E-wallets are particularly popular among younger and tech-savvy users.

Comparatively, young adults are the most active users of e-wallets. According to a survey by Oppotus (2020), as shown in Figure 1.1, 71% of young adults used e-wallets in Q32020. This trend is attributed to the fact that young adults have grown up alongside technology and are quick to adopt new technologies such as e-wallets. Therefore, young adults represent a crucial customer segment for e-wallet providers.

To align with Malaysia`s vision of building a cashless society, the government has launched several programs to promote e-wallet usage among Malaysian youth during the Covid-19 pandemic, such as the eBelia program. This program aims to alleviate the financial burden of Malaysian youths aged 18 to 20 and full-time students by providing them with RM 150 e-wallet credit from Touch `n Go, ShopeePay, BigPay, and Boost (The Star, 2021). Consequently, e-wallets have brought about significant changes during the Covid-19 pandemic. Figure 1.2 shows e-wallet usage statistics in Malaysia from 2018 to 2021.

According to Figure 1.2, e-wallet usage surged to 62% in 1Q20 due to the government`s introduction of Movement Control Order (MCO) 1.0 in response to the pandemic, accelerating e-wallet adoption in Malaysia. To achieve Malaysia`s vision of building a cashless society, the Malaysian government incentivized e-wallet usage by providing RM30 and RM50 incentives during the first and second halves of 2020 (Ong, 2020).

During the Covid-19 pandemic, digital wallets such as Boost, GrabPay, and Touch `n Go were encouraged through the e-Tunai Rakyat Campaign to claim the RM30 offered by the Malaysian government. In 2Q20, e-wallet usage slightly declined to 49% but increased again in 3Q20 to 60% due to the E-Penjana campaign. This campaign offered an additional RM50 of e-wallet credit to individuals with verified accounts. However, e-wallet usage decreased slightly to 56% in 4Q20 due to another lockdown following