The Demand for E-Payments in Malaysia: An Examination of Usage Intensity

The successful operation of retail e-payment systems depend on several stakeholders, such as consumers, merchants and financial institutions. As consumers constitute an essential target group for retail e-payments, their profile information has come to be seen as important in the demand management of e-payments. As such, this study aims to examine the effects of socio-demographic factors on the intensity of using e-payments in Malaysia. Results from the censored Tobit model analysis based on a cross-sectional sample of 578 respondents indicate that younger consumers with higher levels of education and income utilise e-payments in a more intensive manner, ceteris paribus. Ethnic background, marital status and type of occupation are also important predictors in determining the intensity of using e-payments amongst consumers. A better understanding of how such socio-demographic factors may influence consumers’ e-payments usage intensity is essential for policy makers to efficiently design and implement effective policy measures.JEL Classifications: D12, E42, E51