Mobile Payment Systems in Malaysia: Its Potentials and Consumers’ Adoption Strategy

M-payments are payments made using mobile handsets and other devices, either to directly purchase or to authorize payment for goods and services. Such devices are playing an increasing end evolving role in the wider development of electronic payment systems around Asia Pacific.

Mobile payment system has been widely introduced in developing country years ago. However, it has only been popular recently in Malaysia. It can be used for purchasing music, ring tones, wallpaper and games (there are many of these type of service or product offered in Malaysia’s newspaper). Most Malaysian buys these ring tones and games via mobile payment, either via GPRS/WAP or SMS (premium SMS based transactional payments).


Maxis and Maybank in Malaysia both provide a simple m-banking service for subscribers (bill payment, balance enquiries, fund transfers), which can also be used to top-up Maxis accounts, download Maxis content and pay for products such as pizzas and movie tickets. Maxis customers are changed less than half of what the banks charge for sending money overseas. Another Maxis competitor, Digi, is providing many of the same services.

Although mobile payment system is not a fresh term anymore, however it still has huge potentials in Malaysia. The high penetration rate establish mobile phone networks as an increasingly popular channel for Malaysians to perform a surplus of activities beyond voice communication, encompassing all forms of digital communication, commerce, banking and payments. Indeed, payments via text messaging have the potential to grow in importance.

For consumers’ adoption strategies, in Malaysia, most of the company will reward the
consumer by giving gift at certain level of purchasing or giving redemption of reward. In order to encourage consumer to adopt mobile payment systems, it should enhance consumer confidence toward security, safety and reliability of the systems. It can also educate consumers through seminar or advertisement about the function and the usage of mobile payment system. Furthermore, it should increase the number of company that can accept mobile payment system.



References:


http://www.neowave.com.my/sellmore/wp-content/uploads/2008/01/mobile-payments-asiapacific-kpmg.pdf

http://www.bis.org/review/r080605d.pdf


by Wong Leed Chen
Posted on 9:01 PM by 4EvEr and filed under | 0 Comments »

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