Tuesday, February 10, 2009

Mobile payment system in Malaysia: Its potential and consumers' adooption strategies




Mobile payment system is new and rapidly-adopting alternative payment method. A consumer can use a mobile phone to pay for wide range of services and digital or goods. For example pay the restaurant bill without interacting with any staff member.


One of the mobile payments systems in Malaysia is Mobile Money payment (MM Payment). 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. MM Mobile Payment platform allows everyone to pay anyone, at anytime from anywhere with just one SMS. It also allows one to receive money from anyone, from anywhere, and anytime. MM Mobile Payment system has a strong security system as it is a closed loop payment system. The charter of Mobile Money is to provide Merchants and consumers with a convenient and secure Mobile Payment and Mobile Commerce platform.



Its potential and the consumer’s adopt strategies are as follow: Consumers are more comfortable with low-value transactions over such non-traditional means. Common applications will include payment for transportation, parking, restaurants, convenience stores, retail outlets, e-tickets to name a few - typically for low-value items. This helps especially when consumers are in need of cash but doesn’t have any in hand, therefore with mobile payments they do not need to even search for an ATM machine to withdraw the needed money for the payment.


Payment systems security is one of the main barriers to electronic and mobile commerce transactions. The key requirements for secure financial transactions in electronic environment include confidentiality, data integrity. Other security factors important for consumer adoption are anonymity and privacy, which relate to use policies of customers’ personal information and purchase records.


Since the mobile payment system has a big market in Malaysia, they should take some strategies to expand it. For example companies can try to educate consumers about mobile payments, how to use and introduce its functions (e.g. bill payment, mobile purchase). Beside companies can try to enhance the security so that user will have confidence with it and also can maintain the customer’s loyalty.


Reference

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

http://www.mobile-money.com/

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

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