Determinants of Brand Loyalty in Digital Payment Services: The Roles of Fee Perception, Satisfaction, Experience, and Brand Image of Touch ‘n Go e-Wallet

Abstract

This study investigates the determinants of brand loyalty among users of Touch ‘n Go e-Wallet in Malaysia, with a particular focus on the implications of the recently introduced 1% surcharge on credit card reloads. Adopting a quantitative research design, the study examined the effects of four independent variables (brand image, customer satisfaction, customer experience, and fee perception) on brand loyalty. Data were collected through an online survey distributed to targeting Klang Valley users who actively utilise credit cards to top up their Touch ‘n Go e-Wallet. A total of 179 responses were retained and analysed using SPSS 29. The study found that brand image and fee perception significantly and positively influence brand loyalty, while customer experience was not statistically significant. The final model explained 83.5% of the variance in brand loyalty, underscoring the explanatory strength of the included factors. The findings highlight that in the Malaysian e-Wallet sector, brand image and fee perception are the primary drivers of user brand loyalty, while customer experience factors play a less decisive role. This suggests that users perceive e-Wallets as utility-based financial tools, prioritising functionality, cost, and credibility over subjective experiences. From a practical perspective, the study underscores the importance for e-Wallet providers to cultivate a strong brand image and implement transparent pricing strategies to sustain customer loyalty towards brand loyalty.  Future research is recommended to explore mediating factors such as perceived value and trust, and to adopt longitudinal designs to examine the long-term effects of customer related factors on brand loyalty.