The Enforcement of Service Level Agreement on E-Payment Fund Transfer in Malaysian Government: An Application of Technological-Organizational-Environmental (TOE) Framework

Purpose: This study aims to investigate discrepancies in e-payment collection processes related to Service Level Agreements (SLAs) and explore the feasibility of using Blockchain Technology and Smart Contracts (BCT-SCs) to enhance SLA monitoring and penalty enforcement on e-payment collection at the Malaysian Government Agency. Design/Methodology/Approach: An in-depth qualitative case study approach will be employed, utilizing the Technological-Organizational-Environmental (TOE) framework to guide the investigation. Findings: Recent data from Bank Negara Malaysia (BNM) indicates a significant increase in e-payment transactions, reflecting a growing reliance on digital financial services among Malaysian consumers. However, discrepancies in SLA adherence, as highlighted by the Auditor General of Malaysia in 2022, pose challenges to the efficiency and effectiveness of e-payment systems. The study identifies the potential of BCT-SCs to improve SLA management, offering features such as decentralization, immutability, and real-time processing to enhance speed, security, and transparency. Research Limitations/Implications: The study is limited by its focus on a single case study at the Malaysian Government Agency. Generalizing findings to other contexts may require caution. Practical Implications: This research offers valuable insights for policymakers, practitioners, and industry stakeholders, providing guidance for the adoption of BCT-SCs to optimize e-payment collection processes. By addressing SLA management gaps and promoting accountability, the study aims to enhance the efficiency and effectiveness of the e-payment ecosystem. Originality/Value: This study contributes to the existing literature by examining the application of BCT-SCs in enhancing SLA monitoring and penalty enforcement in e-payment collection processes. The research provides a comprehensive analysis of the challenges and opportunities associated with SLA management in the context of digital financial services, offering practical solutions to improve accountability and optimize e-payment systems. Keywords: e-payment, service level agreement, blockchain technology, smart contract, TOE Framework
Introduction Digital transformation has boosted the financial sector's growth in electronic services (e-services). The digitization of conventional payment systems has improved efficiency and flexibility, reduced costs, and improved people's and [...]