MOBILE PAYMENT SYSTEM IN MALAYSIA: IT’S POTENTIAL AND CONSUMERS’ ADOPTION STRATEGIES

What is mobile payment system?
Mobile payment is the collection of money from a consumer via a mobile device such as their mobile phone, Smartphone, Personal Digital Assistant (PDA) or any electronic devices. Mobile payment can be used to purchase any number of digital goods and physical good liked ringtones, games, and even booking cinema ticket or air ticket. The mobile payments available in Malaysia are Telemoney and Mobile Money. There are four primary models for mobile payment which are:
a) Premim SMS based on transactional payments- payment through SMS text message
b) Direct Mobile Biling- uses mobile biling option to check at an e-commerce site
c) Mobile web payments (WAP)- uses web pages displayed to installed in mobile phone to make a payment
d) Near Field Communication- paying for purchases made in physical stores or transportation services.

MOBILE PAYMENT IN MALAYSIA

Telemoney
This is the first mobile payment service via multi channel access for internet and wireless transaction. GSM phone is used and identify the number then connect it to a credit card, debit card or bank account.

Mobile Money
This is a PIN- based mobile payment solution designed by MM International Sdn. Bhd. To address the limitation of cash, cheque and credit cards. User can registered anywhere by using a mobile phone.

POTENTIAL OF MOBILE PAYMENT SYSTEM

1) Improved user convenience
Mobile payment provides a more convenient way to pay for their bills, just by a few clicks on mobile device, the user may be able to make payment through their mobile. Instead of make payment by going to the particular place, as the mobile payment is operating 24 hours a day, the user can make payment at anytime, anywhere they want, they can even make payment either at home or their office. Thus, this can eliminates the hassle to queue up just to pay for the bills and therefore can save user’s time.

2) Security privacy and trust
Mobile payment ensures private and secure transmissions. By using mobile payment, the personal details and payment history of the user are protected. Moreover, users account is protected from hacker or terrorists because the users need to key in passwords in order to login to their account.

3) Simplicity
User does not need to go through sophisticated steps in order to make payment by their mobile device. They just have to activate their telephones by logging into websites. After registering their mobile telephone numbers, they can enjoy the services, after registering it, there just a few clicks and they are able to make payment through their mobile device.

CONSUMERS’ ADOPTION STRATEGIES
1.Educate consumers about mobile payments, how to use and introduce its functions (e.g. bill payment, mobile purchase)
2.Enchance security and confidence to mobile users
3.Collaborate with more banks and companies to widen the ability to pay via mobile at the same time it helps to increased customer’s satisfaction and confidence
4.Maintain customer’s loyalty