Significance of E-wallet

E-wallet or digital wallet is an electronic device that allows you to make and receive electronic payments for transactions made online via a computer or a smartphone. Its utility is same as a credit or debit card. An e-wallet requires to be linked with the person’s bank account to make payments.

E-wallet also offers the feature of a pre-paid account in which a user can store his/her money for any future online transaction. An E-wallet is secured with a password and is useful for making payments for groceries, online purchases, and flight tickets, among many other things, provided the receiving party accepts payment via e-wallet.

E-wallet generally has two constituents – software and information. The software constituent stores personal information and offers security and encryption of the data. The information constituent is a database of details given by the user which comprises their name, shipping address, payment method, amount to be paid, credit or debit card details, etc.

How E-wallet Works

For setting up an e-wallet account, the user is required to install the software on their device, and enter the important information needed. After shopping online, the e-wallet automatically fills in the user’s information on the payment form. To Activate the E-wallet, the user is required to enter their password. Once the online payment is done, the consumer is not needed to fill the order form on any other website as the information gets stored in the database and is updated automatically.

Benefits of E-wallet

  1. Convenience

In a matter of a few seconds, you can finish a transaction using an e-wallet with a tap of the smartphone at the checkout terminal.

  1. Proficiency

No more searching in your purse or wallet for the right card. Also, as more consumers take up this technology, checkout lines can get shorter owning to the swift nature of the transactions.

  1. Systemise

An e-wallet can help you systemise everything from credit cards, membership cards, customer loyalty cards and more.

  1. Improved Security

Unlike your regular wallet, your phone has controls available — that will permit only you to get in. If someone finds your wallet, your cards are all right there. But if someone finds your phone, they can’t just physically reach into it and pull out a credit card. Furthermore, when the payment is made in-store or online, what is exchanged rather than your card number is a distinctive transaction identifier or token — so the stores where you shop with a digital or e-wallet do not have to store your account information — that can help improve the security of your data.

  1. Hassle-Free

Have you ever quit an online transaction because the forms you were filling out were too long and difficult? E-wallets let you to skip some of this form-filling.

  1. Discounts & Bonuses

You will frequently find promotions and point rewards systems in your e-wallet, and you can access the information at-a-glance.

  1. Prices

E-wallets usually provide all of this convenience for free. Some transactions, although, could come with a flat fee, like reloading a prepaid card within the wallet from a new source, such as a credit card. However, for most transactions, the convenience and simplicity of an e-wallet will not cost anything extra.

Labuan E-wallet

Hassle-free solutions for retail or online business transactions is the supreme consideration for both entrepreneurs and consumers in present modern world of technology. In this age and era, payments are transacted in cashless manners like debit card, credit card, online internet banking and the most and recent, via e-wallet.

The e-wallet is growing by popular demand with the use of the various Payment Gateway Service providers in the market. Money can be credited into a mobile application to conduct cryptocurrency-related transactions. Many non-technology industries and sectors are trying to implement this technology into their payment gateway in order to stay relevant and competent within the current global economic trend.

Labuan offers approval for e-business transactions. The two most common e-payment / e-wallet payment gateways are ‘Sole Dealer Payment Gateway’ and ‘Joint Community Payment Gateway’.

Key Advantages of a Labuan E-Wallet

  • 100% foreign ownership, Malaysian local partner not required
  • 3% corporate tax on trading profit
  • No Withholding Tax on interest, management fee, royalty fee and technical fee
  • No Foreign Exchange Controls
  • No Stamp Duty and GST
  • No Import Duty / Sales / Service Tax
  • No Capital Gain Tax and Inheritance Tax
  • Ability to access to more than 70 Malaysia Tax Treaty partners
  • 50% tax reduction for expatriate professionals/managers employment
  • 100% tax exemption on director’s fees for foreign directors
  • No tax on dividends to shareholders
  • 2-year multiple entry working visa (renewable) to stay in Malaysia – Optional

To attain more information on Labuan E-wallet, like eligibility criteria, processes or more, contact our QX Trust consultants at +60 3 9212 6940 or for a complimentary consultation on how to apply for a Labuan e-wallet today.