1.

0 COMPANY OVERVIEW OF THE E-WALLET

Lazada Group, which was founded in 2012, is the top eCommerce platform in
Southeast Asia. They link this large and varied area with a footprint in six nations—
Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam—through
our technology, logistics, and payment capabilities (Lazada, 2022a). By 2030, they
wish to serve 300 million customers, who now have the widest variety of brands and
dealers. The Alibaba Group's regional flagship Lazada was elevated to this position
in 2016 and is supported by the company's world-class technological infrastructure
(Lazada, 2022a). In terms of Southeast Asia's biggest online markets, Lazada
comes in third. In one month, there are 128.4 million visitors (Refer to Appendix 1) .
Lazada wallet is a digital payment mechanism used to make online purchases of
goods and services from Lazada. According to e-commerce platform Lazada, as
more brands and companies, particularly small and medium-sized enterprises
(SMEs) go online, the Malaysian digital economy will continue to flourish (Alex
Cheong Pui Yin, 2020). The increase is also backed by consumers who are
becoming more at ease with ordering their daily necessities online. The Covid-19
outbreak and the mobility control order (MCO), according to Leo Chow, chief
executive of Lazada Malaysia, have accelerated consumer and retailer use of digital
technology. Chow said that Malaysians are open to technology developments in
payment methods since they are aware of the advantages of adopting digital
payment methods (Alex Cheong Pui Yin, 2020). He emphasized that since buyers
and sellers no longer need to deal with actual money or visit institutions, digital
payments are more practical (Alex Cheong Pui Yin, 2020). Additionally, it is less
opaque, efficient, and expensively effective since it is not physically constrained.

2.0 EXAMINE THE DISTINCTIVE CHARACTERISTICS OF THE E-WALLET

One of the distinctive characteristics of lazadapay are customers may pay for items
on Lazada using a variety of easy options, including credit cards, COD (cash on
delivery), helloPay, BDO installments, and Lazada wallet, which can also be topped
up at 7-Eleven locations. Lazada makes it simple to withdraw money from their site.
They've teamed up with Payoneer to make it simple and affordable for customers to
manage international payments. Additionally, the integration of Lazada Wallet will
enable Malaysian Taobao App users to make payments conveniently and securely
on both Lazada and Taobao. Customers will benefit from a streamlined purchasing
experience across all platforms and an improved online buying experience.
Additionally, the integration of Lazada Wallet will enable Malaysian Taobao App
users to make payments conveniently and securely on both Lazada and Taobao.
Moreover, customers will benefit from a streamlined purchasing experience across
all platforms and an improved online buying experience. Malaysia's Country
Manager for Alibaba Tmall World, Jess Lew, stated that "Users now have a hassle-
free channel to make immediate payments with a more streamlined check-out
procedure with the integration of Lazada Wallet on the Taobao App." (Bass, 2020).
The best aspect is that customers' Lazada wallet balances will sync between both
platforms to provide a convenient payment alternative.

3.0 EXAMINE THE STRENGTHS & WEAKNESSES OF OF THE E-WALLET

Strengths of e-wallet Weaknesses of e-wallet

Transactions limit increased Limited retailers

Withdrawal and transfer money into bank accounts Reckless spendings

Safe and secure payment Time and money investment

Earn more rewards Security risk problems

Strengths of e-wallet

1. Transactions limit increased

The redesigned Lazada Wallet has been launched by e-commerce platform
Lazada and includes two essential components for the benefit of Lazada
users. Users will have access to a higher transaction limit with the new Wallet
(Refer to Appendix 2) (Alex Cheong Pui Yin, 2021). Customers can make
simultaneous transactions totaling RM9,999. Due to the increase in the
transactions limit, customers may now transact at higher levels concurrently.

2. Withdrawal and transfer money into bank accounts

Customers may transfer their wallet's available balance into a bank account
using the withdrawal feature of the enhanced Lazada Wallet. Both the Deposit
and Refund amounts in Lazada Wallet are subject to this functionality. In
contrast, customers may only withdraw funds from the Refund amount using
the standard Lazada Wallet which the deposits cannot be withdrawn (Alex
Cheong Pui Yin, 2021).

3. Safe and secure payment

Digital wallets, according to the Identity Theft Resource Center, rely on time-
tested security methods like two-factor verification and PINs that can only be
used once (Rafter, 2021). Additionally, consumers' financial and password
information is encrypted by wallets. As a result, it is more challenging for
hackers to intercept this information when consumers utilize their digital
wallets to make transactions.

4. Earn more rewards

By using Lazadapay e-wallet for all the purchases, customers get to earn
special rewards that can come in many forms: discounts, vouchers, promo
codes, etc (Publico, 2020). This can attract more customers to use
Lazadapay to buy stuff in Lazada.

Weaknesses of e-wallet
 1. Limited retailers

The amount of businesses that accept payments from an electronic wallet is

determined by the wallet itself. Although many individuals utilise cashless
payment methods around the country, a few of merchants have yet to
integrate a digital wallet to their phones. There are also numerous online
businesses that do not accept payment using e-wallets, forcing customers to
utilise debit or credit card information (Vapulus, 2018).

2. Reckless spendings

Despite the fact that digital money has been around for a long, some
consumers still spend more when they cannot see or touch actual money. It
implies that, regardless of their capacity to monitor and evaluate their
spendings within a digital wallet programme or an online banking account,
budgeting might be difficult.

3. Time and money investments

Companies must have particular gear or software to facilitate these

procedures in order to allow consumers to pay using digital wallets.
Companies who wish to create their own digital wallet solution must hire
software developers with necessary knowledge and invest both money and
effort in the development process.

4. Security risk problems

Although an e-wallet user does not need to bring their wallet or purse, if their
e-wallet devices, such as a smartphone or tablet, are stolen or lost in the
middle of nowhere, the user's personal information will be exposed because
all of their personal information is stored inside their devices for e-wallet
payment. If the e-wallet user does not have a password or PIN on their e-
wallet device, the criminal has the right to use it because the device may
contain a large amount of cash.

4.0 RECOMMENDATIONS

There are several ways to improve the e-wallet :

1. Improve security of e-wallet

Companies may recruit additional professionals to boost e-wallet security.

Users might become more trusting as a result of this. Gaining more
confidence will encourage more consumers to utilise the e-wallet since they
will no longer be concerned about its security.

2. Minimize transactions fees

A store-branded, closed-loop payment card is one technique to reduce

transaction fees. This is because these cards may only be used at a single
store, they are not subject to the interchange fees paid by payment networks.
However, for some shops, the cost of creating and issuing real cards is
prohibitively expensive. However, the expenditures are considerably lowered
 by digitally supplying a shop card to a digital wallet. By minimising the
transaction fees, the customers will be willing to use the e-wallet rather than
using card payment .

3. Limit daily usage of e-wallet

Customers' spending can be controlled by e-wallet businesses. This is carried

out to safeguard the e-wallet from being overspent. This is because they
cannot observe the cash input and outflow, some consumers will overspend
when using an e-wallet.

4. Build a loyalty program

To maximise usage, implement a loyalty programme that rewards consumers

with rebates and discounts for utilising electronic payments. Creating a loyalty
programme centred on the digital payment solution encourages clients to
adopt electronic payments when purchasing items because of the benefits
involved. It also helps to create or extend the client base and enhances
customer retention.