Study on the Small-Sized Merchants Awareness and Perception on E-Wallets Adoption

Abstract

The adoption of e-wallets among small-sized merchants is a crucial step toward achieving a cashless economy. Despite government efforts and financial incentives, many small business owners remain with cash-based transactions. This study explores small-sized merchants awareness and perceptions, e-wallet adoption in Malaysia. Using a qualitative research approach, data was collected through interviews with merchants operating in traditional markets located in Kelantan and Terengganu. The findings reveal that small-sized merchants in these premises were aware with e-wallet adoption, however factors such as trust, digital literacy, infrastucture, hidden fee and supplier preference were determined as key barriers hinder e-wallet adoption. Interestingly, hidden fee and supplier preference factors were new emerging theme discovered. This study contributes to the existing literature by highlighting the unique challenges faced by small-sized merchants and offering practical recommendations for government, financial institutions, and e-wallet providers. Future research should further explore merchants perspectives from other regions in Malaysia to assess how varying culture and geographic location influence e-wallet adoption trends.