While queueing to pay for my drinks at a coffee outlet recently, I observed 80 per cent of customers paid by just waving their bank cards, while some used their mobile phones to scan a QR code that deducts money from their e-wallet.
People don't need cash any more, even to buy small things. This has been a norm in more advanced places like Silicon Valley in the United States, where it's common to see people transact using smartphones via Apple Pay and Google Pay.
According to a 2019 survey, 51 per cent of mobile payment users in the US used Apple Pay in stores, restaurants or other points of sale. The percentage could be higher now.
A couple of years back, when paying for my meal at a restaurant in Silicon Valley, the cashier took out an iPad and asked if I'm paying with Apple Pay, which I didn't have, and there's no cash register at the counter.
The same is happening in Malaysia. Based on the MasterCard Impact Study 2020, we lead Southeast Asia in e-wallet use, at 40 per cent take-up, compared with the Philippines (36 per cent), Thailand (27 per cent) and Singapore (26 per cent).
The Covid-19 pandemic and enforcement of the Movement Control Order have also boosted adoption. With all the security and authentication procedures in place, and with little or no cases of money being stolen from digital payments, I'm optimistic that this trend will grow.
Some people may still be hesitant to use digital wallets over security concerns. However, one needs to be aware that the advantages of digital wallets outweigh its disadvantages.
For example, it's more secure than a card as it has advanced security solutions, like tokenisation and biometric authentication that reduce the threat of fraud and chargebacks.
There are also fewer steps to complete a purchase, and businesses can offer more rewards and users will benefit from discounts or easier use of reward points.
One of the valuable features of e-wallets is that all transactions are recorded digitally and automatically, meaning you can track your spending easily. E-wallet use is prevalent among younger and tech-savvy users.
However, a little push by the government, e-wallet providers and banks will boost adoption, even among smaller businesses and roadside stalls.
One initiative that is ongoing is by DuitNow QR, which is the national QR standard. Merchants can get payment via QR from customers who use bank apps and major e-wallets. Among the objectives is to encourage the use of e-wallets and bank apps with just one standard QR code.
To make a purchase, consumers need to scan a QR code using a mobile app, while for businesses, DuitNow QR allows accepting payments from any customer, bank or major e-wallet by displaying one QR code on the payment counter. Another vital feature of DuitNow QR for small businesses is the ability to get money credited to their account immediately.
The customer just needs to open a banking or e-wallet app, scan the QR code, confirm the amount and make the payment.
To show how this works, an initiative has been conducted at Pasar Payang in Kuala Terengganu, where about 60 per cent of the traders are on board the system. Even a makcik selling banana fritters can use it. It's a project by the Terengganu government, PayNet, Touch 'n Go, Maybank, Bank Muamalat and Bank Negara.
This shows that e-wallets are viable even at a traditional market. What is needed now is more awareness and maybe incentives by service providers to attract more users, not just the young and tech-savvy ones.
The writer is Tech Editor of the 'New Straits Times' with 25 years of experience covering the consumer, enterprise, telecommunications and emerging technology space