Electronic Money Institution and Protection Framework

Abstract

This study aims to address a notable gap in the existing literature concerning electronic money (e-money) in Malaysia. While numerous studies have explored advantages and disadvantages of e-money, consumer behaviors and general issues on e-money, there remains limited understanding of e-money-related institutions and the protective measures they afford. Employing a structured interview guide, primary data were gathered from professionals actively engaged in the e-money sector, who concurrently serve as users. Additionally, secondary data were extracted and analysed from official government websites. Semi-structured interviews formed the primary data collection method, and an in-depth thematic analysis was conducted using Computer Assisted Qualitative Data Analysis Software (CAQDAS), specifically Atlas.ti version 22. The study identifies four key institutions contributing to e-money consumer protection: government entities, private organizations, nongovernmental institutions (NGOs), and international entities. Moreover, it delineates five types of protection extended to e-money consumers during payment transactions. These protections encompass security measures, safeguards provided by the Central Bank of Malaysia, merchant-based protections, measures enacted by Telecommunications Companies (TELCOs) and Electronic Money Institutions (EMIs) as well as non-governmental organisations (NGO). The findings of this research offer valuable insights for practitioners and policymakers involved in the e-money ecosystem. Understanding the diverse institutions and protection mechanisms is crucial for fostering a secure and reliable e-money environment for consumers. This research contributes significantly to the current body of literature by presenting insights derived directly from experts with firsthand experience in e-money institutions and protective measures. The study enriches our understanding of the multifaceted landscape of e-money consumer protection, filling a crucial research gap in the existing knowledge base.