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

Saturday, February 14, 2009

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

Mobile payment system is the service allowing registered user not only makes payment but also allowing user to pay for food and service at anytime anywhere with using their mobile phone. This system function like a credit card and provide very convenient service for consumer with no need bring many cash and card because they only need to use their mobile phone to make their transaction.

Current mobile payment systems that are available in Malaysia are Mobile Money Wallet (MM Wallet). This service recently developing very fast and Malaysian now can enjoy a secure and convenient way to conduct mobile commerce by using a GSM cellular phone. This also gives freedom for consumer to buy product online and pay the merchant using the mobile phone without physically present at the store. Normally, when make the transaction or payment mobile phone will coupled with 6 digit security PIN through SMS.

Besides that, this system also provides benefit for merchant because, in online selling, selecting a payment gateway is the major problem face by the merchant in Malaysia; but this problem has been address by MM Wallet which was it allow merchants to take online order without the need for online shopper to disclose their credit card information. Moreover, merchants can enjoy super low transaction fee at 1.5% if compare with credit card at 2.5% to 3%. With Mobile Money, merchants also do not have to concern of cash, cheque, and credit card handling problem and fraud because MM Wallet will confirm to the stringent requirement set by Bank Negara Malaysia and participating Bank.

Lastly, the way to encourage consumer to adopt this payment method are:-

i) Through advertisement to attract more people using this payment method this will help
to increase the usability.
ii) It must be safe and secure to enhance consumer confidence toward the security and reliability
of this payment system
iii) No hidden cost, no annual fee or monthly fee, no minimum monthly transaction to encourage
consumer adopt to this payment system.
iv) To attract more people using this payment system it must be simple and easy for consumer
and merchants to make payment and receive payment using mobile phone. The process
should be straight forward as using the credit or debit card.
v) Educate consumer through seminar about the function and the usage of mobile payment
system. This will help to increase the confidence of consumer to using the mobile payment
instead of credit card or debit card.