Factors Influencing Customer Retention for Electronic Wallet Services in Malaysia

Abstract

Customer retention is vital in sustaining a business, especially in the competitive FinTech market environment. Understanding these factors will provide business with critical strategic information for leveraging and sustaining their competitive advantage. Over a span of a decade there has been a surge of deployment of financial technology (FinTech) services in Malaysia, such as online banking, mobile payments and of recent years, electronic wallets. This profitable venture is highly competitive open to both banks and non-banks financial service providers. The purpose of this paper is to propose a conceptual framework to investigate the relationships of independent variables such as brand image, perceived price, perceived quality, and relationship marketing to customer retention. This aim is to develop an enhanced understanding on how these variables influence customer retention for e-wallet services. The study will also identify the most influential factors that drive customer retention on electronic wallet services in Malaysia. The study methodology will include descriptive and correlational analysis. The study population will be users of e-wallet services. A sample of 384 people from the city of Kuala Lumpur, Malaysia will be selected by using random sampling technique. Regression analysis will be conducted to assess the study hypothesis.