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

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

Mobile payment (M-payment) is a point-of-sale payment made through a mobile device, such as cellular telephone, smartphone and personal digital assistant (PDA). The mobile payment can be used to purchase digital goods and physical goods.
There are four primary models for mobile payments:
• Premium SMS based transactional payments
• Direct Mobile Billing
• Mobile web Payment (WAP)
• Contactless NFC (Near Field Communication)

For more explaination about these four models of mobile payments, you can visit the website below:
http://en.wikipedia.org/wiki/Mobile_payment

The use of mobile payment in Malaysia has been increasing. This is because it provides convenience to users such as reducing the need of coins and cash in small transactions.
For Premium SMS based transactional payment, users use premium SMS to download wallpaper, music, ring tones and mobile games. Each SMS sent is being charged. It is a convenient way to make payment.

Nokia and Visa have teamed up to provide credit card users in Malaysia a chance to buy items using mobile phones. The system allows consumers to swipe a phone accross a credit card scanner, which then read the credit card information on a microchip that is embedded in the handset. Consumers then authorise the purchase by pressing a butoon on the handset. Adoption of mobile payment system helps users to save their time queuing up for bill payment at the counter .

For more information about mobile payment, you can refer the website below:
http://www.mobile-money.com/index.html



Mobile Money is a PIN-based Mobile Payment Solution to address the limitations and bottlenecks created by cash, cheques and credit cards. It allows registered users to pay for goods and services at anytime, anywhere using only a mobile phone with 6-digit security PIN via SMS. In order to pay using Mobile Money, a shopper must have either a saving, current or credit card account with participating banks. It functions like a credit card if shoppers apply for a “Pay by Mobile Phone” credit card account. For example, Hong Leong Mobile Credit Card. Shopper will receive the bill from bank by end of the month.

For more information about the PIN-based Mobile Payment, you can visit the websites below:
http://www.neowave.com.my/mobilemoney_overview.asp
http://www.hlb.com.my/mm/ptrans1.html

Maybank and Maxis launched a Mobile Money to allow shopper to transfer money and pay bills by using mobile phone. The services that they offer include electronic cash transfer to other Maxis users, purchase downloads form myzone, pay for Maxis bills, top up Maxis prepaid card and purchase products and services such as cinema tickets and pizzas.

This website is about M2uMobile which was launched by Maybank and Maxis.
http://www.maxis.com.my/personal/mobile/vas/m2u/m2u.asp

In order to encourage consumers to use mobile payment system, there are several strategic ways can be implemented:

1. Educate consumers about mobile payments, how to use it and introduce its functions ( e.g bill payment, mobile purchase)

2. Provide more security collaborate solutions for mobile payment to increase consumers' confidence and satisfaction in using mobile payment.

3. Collaborate with more banks and companies to widen the ability to pay via mobile. It can also increase customers' loyalty and satisfaction.

4. Companies reward the consumers by giving gifts at certain level of purchase or by points redemption. For example, Hotlink gives extra credit and redemption points to active customers who made certain amount of calls. Customers can also accumulate the points to redeem free air time or SMS.