Mobile payment systems in Malaysia: Its potentials and consumers’ adoption strategies

Nowadays, mobile payment system was very famous especially in Europe and Asia. It also can be known as M-payment. It is a new and rapidly-adopting alternative payment method. Consumer can use mobile device such as mobile phone, smart phone or personal digital assistant (PDA) to pay their bills, or buy digital or hard goods such as music, online game, ringtones, books, and movie ticket. Usually for purchase ringtones and wallpapers will use sms text message and it will deliver by Multimedia Messaging Services (MMS). Nowadays, mobile web payment (WAP) and Direct Mobile Billing are more famous.

Nowadays, mobile payment system was start using by Malaysian and become popular in Malaysia. This is due to mobile payment system is convenience in this fast growing market and it will make our busy life to become more simple and easy. By using mobile payment system consumers can pay their bills or transfer money by using their mobile phone at anywhere or anytime. This will help the consumer save their time for queuing up for bill payment at the counter. Beside that, consumers also no need to carry money to make the transaction because it can be paid by using the mobile wallet.

Mobile payment system does not require minimum monthly transaction, rental fee and merchant account. Therefore, consumers do not need to hit the minimum monthly transaction to waive the rental fee. Mobile payment is safe and secure because consumers do not have to worry about the cash, cheque, and credit card handling problems or fraud. It also secured by a strong pin fraud protection, therefore consumers does not need to worry about their date will hack or steal by other.

For the consumer’s adoption strategies, most of the Malaysian use mobile payment system to pay the credit card debt and bills. Therefore, we can know that Malaysian still not familiar with the mobile payment system even though it’s become more popular. Therefore, we need to educate consumers about the mobile payment system, the usefulness and its function. Besides that, we also need to enhance consumer’s confidence and the system’s security.

There are many mobile systems in Malaysia such as mCheck, Telemoney and Mobile Money (MM Wallet). Mobile Money is a PIN-based Mobile Payment Solution designed by Mobile Money International Sdn Bhd to address the limitations and bottlenecks created by cash, cheques and credit cards. Mobile Money allow users make payments and registered users to pay for goods and services at anywhere and anytime by using a mobile phone with a 6-digit security PIN (Personal Identification Number) via SMS (Short Messaging Service). This will encourage more consumers to shop online.

Related link:
http://en.wikipedia.org/wiki/Mobile_payment

http://www.neowave.com.my/mobilemoney_overview.asp