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

Electronic currency

Electronic currency
Electronic currency (also known as e-money, electronic cash, electronic money, digital money, digital cash or digital currency) refers to money or scrip which is exchanged only electronically. Typically, this involves use of computer networks, the internet and digital stored value systems. Electronic Funds Transfer(EFT) and direct deposit are examples of electronic money. Also, it is a collective term for financial cryptography and technologies enabling it.

While electronic money has been an interesting problem for cryptography, the use of digital cash has been relatively low-scale. One rare success has been Hong Kong's Octopus card system, which started as a transit payment system and has grown into a widely used electronic cash system. Singapore also has an electronic money implementation for its public transportation system (commuter trains, bus, etc), which is very similar to Hong Kong's Octopus card and based on the same type of card (FeliCa). There are also one implementation is in the Netherlands, known as Chipknip.

Paystone
Founded in 2001, Paystone has operations in the United States, Canada and the Philippines with International cash out capabilities in many other countries.

Paystone provides an inexpensive online payment method without the risk of chargebacks from fraudulent credit card use. Paystone can efficiently handle small financial transactions (micropayments) as low as $0.25. The ability to process micropayments opens a whole new world for entrepreneurs of all sizes. A small business or individual now has a method of generating revenue from their website quickly, easily and inexpensively. This makes a whole new range of content available to personal account holders. The large online merchant can also realize the full benefits of the Paystone solution to expand and increase the profitability of their business.

In addition to payments Paystone also provides an email money transfer option. A Paystone account holder can send funds to the email address of anyone in many countries around the world. The recipient of the funds signs up for Paystone and can cash out the money to their local bank account. For companies sending a large volume of payments they can access our GroupPay© feature to send many individuals money all at once

Bitpass
BitPass, the easiest and most complete way to buy and sell premium content online, works with leading media publishers, communities, portals and content providers to multiply their return on content assets while maximizing distribution and generating a better return on every customer.

For merchants looking to monetize content for distribution on the Web, BitPass offers both modular and end-to-end solutions to combat digital piracy, enable subscriptions and pay-per-view access, effectively merchandise and reward consumers, facilitate single-click payments, and simplify content operations.

For Consumers, BitPass created the universal buyer account, which synergies with the merchant offering and provides proprietary features that make it easy to search for, buy and organize premium content in a single place.

Payloadz
PayLoadz, Inc. is located in the heart of New York City's Grammercy District at 23rd and Park Avenue. This close proximity to the legendary Silicon Alley gives us access to an impressive pool of talent, resources, and also reminds us of the lessons learned during the dot-com fallout.

Payloanz are a new media development firm specializing in providing solutions for merchants and the community of developers. Founded in 1996 as a web development company Superfreaker Studios has grown to become one of the forefront developers utilizing Macromedia development products.

The solution that Payloanz created here has been developed with the years of experience and intimate knowledge and familiarity with the PayPal payment system. It is simple enough for anyone to use and works seamlessly with PayPal account to enable to offer digital goods available for sale from web site or online auctions.

The application of pre-paid cash card for consumers.

Why go through the hassle of taking out your money when you can use a much easier way to pay something? Introducing prepaid cash card. Nowadays people are always on the go and rushing towards work. A prepaid cash card with no information about the owner and carrying at least the following information: a unique card identification number in both visible (i.e., humanly readable) and encoded forms, and an encoded unique personal identification number (PIN) for the card owner. A printed receipt issued with the card displays the PIN in visible form. To initiate a transaction the user must give both the card identification number and the PIN.

What is the PrePaid Cash Card Process?

• Complete application
• Send to SBF with minimal startup fee
• Processor prepares card and sends to employee
• Employee gives routing, account number and deposit
• amount to employer
• The PrePaid Cash Card is loaded from future direct

deposit files

How can you use prepaid cash cards?

• Gift card – Send a cash card in their name
• Allowance Card - No Age Issues
• Travel & Budget Card - Manage Payments,
• Book Rooms and Car Rentals
• Commissions Card - Great for 1099 recipients
• Payroll Card
• Teen Card - Give teens purchasing power, no age issues

Credit Card debts: Causes and Prevention

what is credit card debt?
Nowadays, people like to apply credit cards because when go out we no need bring so much cash,we just show them the credit card and we can use it to pay for what we need to buy, very easy and convenient.
Credit card debt is an example of unsecured consumer debt, accessed through ISO 7810 plastic credit cards.Debt result when a client of a credit card company purchases an item or service through the card system.



causes:
How credit card debt is accumulated?
It's debt accumulated by the consumer that creates a risk for the credit card issuers as no collateral or assets are held against the borrowed funds. Debt accumulates whenever a card holder purchases a service or product through the card. As the consumer purchases more and more goods, the credit card continues to accumulate a debt balance until the credit limit has been reached. Credit limits vary among cards and individuals, as the limit (much like the interest rate) is directly associated with the card holder's credit history. If charges are built up on the card(s) that go over the credit limit. Over-limit charges add to credit card debt and may be subject to interest accrual. Debt increases via interest and penalties when a consumer does not pay their credit card bills on the specified billing cycle. When a payment billing cycle is missed by the card holder, a late payment fee will be incurred. The late fee can be anywhere from $10 to $50 and increases the debt load of the consumer. All missed payments are reported to the credit bureau for filing, affecting the card holder's credit score. If subsequent billing cycles pass and the payments continue to be delinquent, the card holder may be affected by universal default.

Prevention:

• Step1:

Use the calculator, figure out the expenses and incomes. Then list out the fixed expenses such as mortgage, car payment, house insurance, car insurance, etc... We have to figure out where the money is going, and how much is left.

• Step2:

Make a tighter budget for expenses. Cut down in areas where we can cut down.
For example, if we are eating out five times a week, make it two times. If we leave lights on in every room of the house, turn them off! Saving a bit here and a bit there, will add up to big numbers.

• Step3:

Figure out which credit card has the highest interest rate! Try to pay it off first. Add an extra $10 or $20 dollars to it a month to speed up the process if can.

• Step4:

If we could transfer part of the balance from the higher interest company to another, then make the transfer. Be sure to ask how much the fees for transferring will be, and negotiate with them. Sometimes, it is not worth it if the fees are high, and if we don't ask, they won't tell us! The fees will just appear on our statement, and will knock us socks off.

• Step5:

Keep only one credit card for emergency, and cut off the rest. We do not have to cancel all the accounts, just cut them, and put them away. Make sure our emergency usages are actually emergency! our commitment to eliminate debts depends on us.

• Step6:

Use cash for everything! If we do not have the fund for the purchase, then do not buy it.

• Step7:

We can get out of credit card debts with our commitment, determination, and stick to a tight budget. Cut out coupons, use coupons, shop smartly, buy only sale items, and decrease on our spending in any way that we can think of.