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

Its purpose of creation is to address the limitations created by cash, cheques and credit cards. It uses mobile phone to make payments, allowing registered users to pay for goods and services at 24/7 and no local limitation by just using only a mobile phone via SMS (Short Messaging Service). While on the other hand, there are 1.3 billion mobile subscriptions worldwide. Mobile or SIM card used by mobile phone can act as the security token for keys, data, and algorithms.

While, the creation of this service certainly benefits shoppers to buy product online and pay the merchant using their own mobile phone without traveling or being physically present at the store. Mobile payment is cost effective as one can take online orders without the need for disclose any credit cards information. In addition, mobile payment will encourage more consumers to shop online. And of course, this will greatly be a boon to the e-commerce industry in Malaysia. It will surely encourage more merchants to adopt on brick and click channel to sell more on their goods or services.

The consumer’s adoption strategies on the mobile payment can be those rewards provided to customers. For example, Hotlink Malaysia provide Hotlink rewards like reward points, double birthdays, privileges and etc to registered user who use their mobile service.

Besides, mobile money secure the online shopper shop without discloses their credit card information online. Well, users can also be educated on how to use mobile payment on paying phone bill, utilities bill or downloading ring tone or mobile phone wallpaper.

Sources:

http://en.wikipedia.org/wiki/Mobile_payment

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

http://www.ovum.com/mocca/content/tt2/pay.pdf

http://www.hotlink.com.my/web/portal/hotlink/hotlinkpage?WCM_GLOBAL_CONTEXT=/web/wcm/connect/Hotlink_Content_lib_en/Home_Site_en/Hotlink_Rewards_SA_en