JOURNAL OF CRITICAL REVIEWS ISSN- 2394-5125 VOL 7, ISSUE 19, 2020 649 EVALUATING FACTORS THAT LEAD TO CUSTOMER SATISFACTION IN E-WALLET SERVICES Mohd Farid Shamsudin 1 , Siti Hajar Aishah Azuwan 2 , SyafiqahMd Nayan 3 , Siti Aisyah Esa 4 , Baharudin Kadir 5 1,2,3,4,5 Universiti Kuala Lumpur E-mail: mfarid@unikl.edu.my 1 , hajar.azuwan@s.unikl.edu.my 2 , syafiqah.nayan10@s.unikl.edu.my 3 siti.aisyah@t.unikl.edu.my 4 ,baharudin@unikl.edu.my 5 ABSTRACT: The purpose of this study is to evaluate the factors that may lead to customer satisfaction in the E-wallet services in Malaysia. E-wallet recently introduced by the financial institution as alternative of payment method for customers. Service providers need to know the customer perceptions and find ways to maximize customer satisfaction in order to expend their market share. The study applied quantitative method where data was collected using questionnaires. 500 questionnaires distributed through google form to various social groups among students in Kuala Lumpur. 212 usable responses gathered within a 14 days of grace period given. 3 reminders sent generally to all the social groups to get more participations. The results show that three main factors that are important namely service quality, trust and brand image. Service providers may use the result of analysis in preparing their marketing and communication strategy for their acquisition campaign. KEYWORDS : E-Wallet, Service Quality, Trust, Brand Image, Satisfaction I. INTRODUCTION Payment market in Malaysia has widely grown through the cashless or e-wallet payment method. The method of ―going cashless‖ has recently gained popularity due to security concerns and crime issues, such as robbery and pickpocket. The cashless payment services industry was expected to be the fastest growing industry between 2019 and 2021, with the increase in its uptake at a compound annual growth rate of 53% by 2021, which was estimated to represent 16% of the Malaysian payment market share[1]. In particular, digital wallet was found to be the fourth most-used payment method (7%) in Malaysia[2]. High internet penetration and increasing number of smartphone users in Malaysia have encouraged more customers to make transactions using digital wallet. Numerous e-wallet applications are available in Malaysia, such as Touch 'n Go eWallet, Boost, GrabPay, PayPal, and Maybank QRPay[3]. The e-wallet payment method is adapted for the convenience of customers to make transactions. The e-wallet payment system, supported by all mobile devices, allows customers to transfer money to other customers using the online banking system and make transactions using their allocated funds in their digital wallet. Apart from making payment to merchants, the e-wallet payment system also provides other services, such as for loyalty card integration and marketing purposes. The growing number of smartphone users for online shopping gives opportunity for businesses in the 21 st century to apply e-wallet payment system according to the preferences of customers for cashless technology that continues to change and expand in the marketplace. A study reported that almost 62% of smartphone users today use smartphone to do online shopping. Online shopping via mobile devices accounted for about 47% of e- commerce transaction—such transaction was expected to increase at a compound annual growth rate of 31.4% by 2021, amounting to USD 5.6 billion[3]. Apart from international companies, there are many businesses with e-wallet license in Malaysia. The number of services that incorporate the e-wallet payment method has increased, such as for online shopping, e-hailing services, online gaming, and movie ticket booking system. This proved the dependence of customers on e-commerce in Malaysia when they make online purchase given their extensive use of mobile devices, adaptability to online transaction, and ease of use for cashless payment method. With the support of the central bank, service providers for digital wallet have made good progress in promoting the cashless payment method, with the increasing number and value of non-bank from 1 million in 2017 to 31.1 million in 2018 and from RM 240.3 million in 2017 to RM 1.3 billion in 2018, respectively[4]. Most businesses in Malaysia, such as those in the retail, banking, and hospitality industries, have already applied the mobile payment system, such as Touch 'n Go e-Wallet, Boost, and GrabPay. Therefore, most mobile application companies in Malaysia extend their services in order to compete with their competitors. Apparently, the mobile