CHALLENGES OF ISLAMIC E-WALLET IN CATALYZING THE GROWTH OF MALAYSIA’S DIGITAL ECONOMY
DOI:
https://doi.org/10.53840/ijiefer138Keywords:
Fintech, E-wallet, Islamic E-wallet, Digital Economy, Shariah (Islamic Law), RegulationAbstract
Financial technology has the potential to empower ordinary individuals while also contributing to the growth of national economies by enabling secure and efficient access to financial products. The advancements in e-wallet technology have simplified online payments and transactions, since it is a financial transaction application that can function on any device connected to the internet. The main issue is that, in spite of the vital role that digital payments and e-wallets play in propelling the country's digital economy, Shariah-compliant e-wallets are not widely available in Malaysia's fintech ecosystem. By utilizing library search, this paper aims to analyses how the advancement in financial technology especially e-wallet will drive the growth of Malaysia’s digital economy. In the context of Islamic finance, this study found that Islamic e-wallet adhere to Islamic principles and values, however, it faces several challenges in catalysing the growth of Malaysia’s digital economy. This study adds to our understanding of the difficulties faced by Islamic e-wallets in spurring the development of the digital economy.
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