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

In Malaysia, mobile payment is developing fast in recent years. The mobile channel effectively used as a self-funding and revenue generating medium. This service covers all mobile operators on Malaysia; it’s for prepaid and postpaid service billings.

POTENTIAL OF M-PAYMENT

Simplicity and Usability: The m-payment application must be user friendly with little or no learning curve to the customer. The customer must also be able to personalize the application to suit his or her convenience.

Universality: M-payments service provide for transactions between one customer to another customer (C2C), or from a business to a customer (B2C) or between businesses (B2B). The coverage should include domestic, regional and global environments.

Interoperability: Development should be based on standards and open technologies that allow one implemented system to interact with other systems.

Trust, Privacy and Security: Customers' credit or debit card information is not be misused by the mobile payment application provider. Besides that, the customers' transactions record privacy is not be lost. Lastly, the system is foolproof, resistant to attacks from hackers and terrorists.

Cost: The m-payments is less cost than existing payment mechanisms to the extent possible. A m-payment solution is compete with other modes of payment in terms of cost and convenience.

Speed: The speed at which m-payments are executed must be acceptable to customers and merchants.

Cross border payments: To become widely accepted the m-payment application is available globally.

CONSUMER’S ADOPTION STRATEGIES

Telecommunication Company Billing of M-Payments

Customers may make payment to merchants using their mobile phone and this may be charged to the mobile phone bills of the customers. The customers will settle the bill with the telecommunication company.

Bank Account based M-Payment

In this model, the bank account is linked to the mobile phone number of the customer. When the customer makes an m-payment transaction with a merchant, the bank account of the customer is debited and the value is credited to the merchant account.

Credit Card based M-Payment

In this model, the credit card number is linked to the mobile phone number of the customer. When the customer makes an m-payment transaction with a merchant, the credit card is charged and the value is credited to the merchant account. Credit card based solutions have the limitation that it is heavily dependent on the level of penetration of credit cards in the country.

Related link

http://www.mobile-money.com

http://www.netbuilder.com.my

www.netbuilder.com.my

Malaysia Online Payment

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