E-payment offers efficiency in terms of speed, security, convenience, and cost, especially during this pandemic. The study involves monthly data that spans from January 2016 to June 2021. This study aims to investigate selected payment channels and instruments' influence on retail e-payment transactions. The study is also interested to examine the interaction effects of Covid-19 on the relationship between credit card usage and retail e-payment transaction. The study employs Newey-West standard error regression in achieving the objectives. It is proven that traditional e-payment channels such as ATMs do not support the emergence of e-payment development in the country. The findings reveal Covid-19 significantly influences the emergence of e-payment in various ways. Unsurprisingly, internet banking usage showed great potential during the pandemic with a substantial increment since 2020. Oppositely, a credit card gives an adverse impact on the e-payment transaction and the impact is more apparent during the pandemic. In response to the new norm post-pandemic, the study suggests emphasis should be given to crucial e-payment infrastructures, particularly internet banking and debit card to foster the harmonization of the e-payment eco-system in Malaysia. Covid-19, despite its disastrous effect on society, blesses and supports the Financial Sector Blueprint 2022–2026.

The paper attempts to model the key drivers of credit risk for Islamic banks in Malaysia. This paper is motivated to introduce Islamic financing types (IFT) and banks ownership status (STATUS) as additional factors in investigating the key drivers. This study also investigates the level of credit risk between the crisis and non-crisis period. This study employs a panel data analysis method using generalized least squares (GLS) regression for random effect model. The dependent variable is credit risk which assumed to be a function of bank-specific variables and other potential variables that are ownership status, Islamic financing types and financial crisis. The sample of this study comprised of 160 observations for 15 full-fledged Islamic banks in Malaysia, covering the period of 2000 to 2016. The finding suggests that financing expansion, financing and capital buffer are amongst important drivers that significantly influence the level of credit risk of Malaysian Islamic banks. The estimation results of this study also suggest that any Islamic bank that offers equity-based financing (EBF) has significantly higher credit risk.