The Digital Wallet Trap: Assessing the Impact of E-Wallets on the Spending Habits and Financial Wellbeing of USM Students

Ainul Mohsein Abdul Mohsin; Nur Natasha Husna Mohamed Ali; Nur Nabila Huda Amran; Nur Nazira Razalli; Nur Quratu Ainabilah Mohd Nor Sufian; Daisy Mui Hung Kee

doi:10.32535/jcda.v9i3.5068

The Digital Wallet Trap: Assessing the Impact of E-Wallets on the Spending Habits and Financial Wellbeing of USM Students

Ainul Mohsein Abdul Mohsin, Nur Natasha Husna Mohamed Ali, Nur Nabila Huda Amran, Nur Nazira Razalli, Nur Quratu Ainabilah Mohd Nor Sufian, Daisy Mui Hung Kee

Abstract

This study examines the impact of e-wallet features on the spending habits and financial wellbeing of students at Universiti Sains Malaysia (USM). Using a quantitative approach, the study investigates three key factors: Perceived Ease of Use, Promotional Incentives, and Payment Visibility. Spending habits are assessed through impulse buying and budgetary leaks, while financial wellbeing is evaluated through saving capacity and financial stress. The findings indicate that frictionless digital transactions and reduced visibility of physical cash lower psychological barriers to spending, increasing students’ tendency to make unplanned purchases. Promotional incentives, including cashback and rewards, further encourage frequent e-wallet usage and spending beyond planned budgets. These patterns may contribute to increased borrowing and reduced financial stability among students. The study highlights the importance of digital financial literacy and recommends e-wallet features that provide real-time spending transparency to support responsible financial behavior and improve students’ long-term financial wellbeing.

Keywords

E-Wallet; Digital Wallet; Spending Habits; Financial Wellbeing; University Students; Financial Literacy

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DOI: https://doi.org/10.32535/jcda.v9i3.5068