E-Wallet Usage and Its Influence on Financial Literacy, Spending Behavior, Stress, and Well-Being Among Malaysian Undergraduates

Abstract

The rise of digital payment platforms such as Touch ‘n Go, Boost, and GrabPay has transformed the way Malaysian undergraduates manage their finances, raising questions about their influence on financial literacy, spending behavior, stress, and well-being. This study investigates these relationships using a quantitative, cross-sectional design involving 200 students from public and private universities. Data analyzed through SPSS 26 included descriptive, correlation, and multiple regression analyses. The model predicting financial well-being was significant (F = 82.193, p < 0.001) with R² = 0.628. Results showed that e-wallet usage significantly improved financial literacy (β = 0.559, p < 0.001) but had no direct effect on spending behavior, financial stress, or financial well-being. Financial literacy enhanced spending behavior (β = 0.746, p < 0.001) and financial stress (β = 0.757, p < 0.001), and it was the strongest predictor of financial well-being (β = 0.751, p < 0.001). Spending behavior also increased financial stress (β = 0.145, p < 0.05). Financial stress and spending behavior, however, did not significantly predict financial well-being. These findings highlight that financial literacy mediates the benefits of digital payment adoption, emphasizing the need for financial education to strengthen responsible e-wallet use and student financial well-being