Survey on the consumer reactions to the e-money initiatives in Malaysia and the econometric analysis of the impact of e-money and various other alternative payment methods on the currency in circulation produce interesting results. The consumer reactions to the e-money initiatives in Malaysia was not very encouraging not for the lack of interest among the consumers but mainly due to poor support service and acceptability of the e-money initiatives. With regards to support, the main issue of concern was with regards to the reloading facilities. The second most important issue of concern was with the avenue for using these e-money initiatives such as MEPS cash.
One of the main concerns with e-money implementations both from academicians and policy makers is on the impact of these e-money initiatives on money supply and its implications on the Central Banks. The results of this indicates that alternative payment mechanisms such as credit cards and e-money have potentials for displacing currency in circulation both in the long run and in the short run. Hence depending on how e-money is going to be treated by the banking system, it is sure to have an impact on money supply of which currency in circulation is a component. The results generally indicate signs which are clearly paving the way for a cashless Malaysian society provided the necessary infrastructure and support services are established by the issuers of these e-money initiatives to create value to the customers and hence propagate the usage these initiatives.
KHAIRUL IDZWAN IDRIS
Timbalan Pengerusi
Biro Ekonomi Dan Pembangunan Usahawan
Pergerakan Pemuda Umno Bahagian Setiawangsa
Wilayah Persekutuan
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