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

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

Journal of the Community Development in Asia
Vol 9, No 3 (2026): September 2026

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.