How Businesses Can Use eWallets in the Workplace

For as long as eWallets have been present in the lives of Malaysians, businesses looking to hop on the cashless train have been limited to the role of merchant.

But who says corporate organisations have to be left out of the picture? As the pandemic accelerated Malaysia’s push towards digital, we’re seeing more and more opportunities for eWallets to be embraced outside of B2C settings. 

Today, even multinational corporations can explore using eWallets in the workplace. Here’s how that would work, and why it matters.

How businesses can use eWallets in the workplace

EWallets as a payroll solution

In June earlier this year, digital money services business operator Merchantrade Asia rolled out an eWallet payroll solution for plantation workers. 

Currently, many plantations still rely on cash and cheques to pay employee wages. The partnership with plantation solutions provider LintraMax was made in an effort to digitise the payroll for their plantation workers, many of whom are unbanked.

In July last year, Instapay also introduced an eWallet service to digitise payroll for migrant workers in Malaysia. The eWallet also includes a remittance feature which allows workers to send money back home to their family through the eWallet.

The shift to eWallets for migrant workers welcomes many benefits, mainly:

• Minimise physical contact risks

• Ensure payroll transparency 

• Safer and more secure compared to cash

• Encourage financial inclusion for the unbanked 

While we have yet to see any corporate eWallets with company payroll solutions outside of the plantation space, one guess is that the maximum eWallet cap (or purse limit, as it’s referred to by Bank Negara), may be a barrier.

According to BNM’s Guidelines on Electronic Money, e-money operators can be classified as small or large. Small e-money operators are limited to a measly RM200 purse limit, while large e-money operators are limited to “RM1,500 or any amount as approved by the bank”.

The non-insured, non-interest nature of eWallets compared to conventional bank accounts may also make it less desirable for employees.

EWallets to digitise employee benefits 

While we still have a way to go in terms of paying employee salaries with eWallets, don’t forget about benefits and allowances! 

Thanks to eBenefits by eWhallet, organisations can now disburse benefits and allowances directly into employee eWallets. Be it food, transport or medical allowances, employers can play a role in cultivating a cashless workforce starting from their organisation.

This feature can be especially useful for certain perquisites and benefits-in-kind which may not typically be included with employee salaries, or may be tax-exempt.

Perquisites: Benefits provided by employers which can be converted into cash.

Benefits-in-kind: Benefits provided by employers which cannot be exchanged for or converted into cash.

Some examples of tax-exempt benefits and allowances for 2020/2021 include:

Why use eWallets as a solution for benefits, allowances and payroll?

• Minimise risks associated with cash and cheques

• Cultivate financial wellbeing and literacy in your company

• Help drive Malaysia towards a cashless future

• Enjoy added benefits from eWallet providers and merchants

Minimise risks associated with cash and cheques

Physical wallets get lost, and credit/debit cards may fall into the wrong hands. EWallets on the other hand, boast security features like password protection, two-factor authentication protocol and complete traceability of all transactions. 

Digitising your employee benefits and payroll encourages safe and contactless use of e-payments among your employees. Read more about eWallet safety and security here.

Cultivate financial wellbeing and literacy in your company

Power your employee experience by supporting the financial wellbeing of your teams through tech. With digital payments so highly prevalent today, there’s little excuse to not set the stage for digital financial literacy within your company. 

HR departments have a slew of digital solutions they can use to nudge staff in the right direction. Disbursing employee benefits directly into employees’ favourite eWallets is a great starting point, as well as adopting more software solutions, budgeting apps and other personal financial management tools. 

Help drive Malaysia towards a cashless future

MyDigital is Malaysia’s Digital Economy Blueprint. Announced earlier in February this year, the initiative sets out to successfully transform Malaysia into a digitally-driven, high income nation by 2030. 

Weaving digitalisation measures like eWallets into the fabric of your workforce ensures your company has a stronger role in the nation’s digital growth.

Enjoy added benefits from eWallet providers and merchants

Many eWallets still rely on rewards and promotions for user acquisition, though they’ve dwindled down a little as the eWallet scene matures. 

Disbursing benefits and allowances into your employees’ eWallets allows you to explore possible long-term partnerships with eWallets, allowing your team members to reap more rewards just for spending their usual monthly allowances. 

Take the next step in your company’s digitalisation and find out how eBenefits by eWhallet can work for you!