Mobile payment systems in Malaysia. Its Potential and Consumers' Adoption Strategies

The creation of mobile payment systems provides a convenient way for users to make payment using mobile devices such as cellular telephone, a smart phone, or a personal digital assistant (PDA). It brings advantages as people can use mobile phone to pay a wide range of products or services, instead of paying with cash.

Potential

In Malaysia, mobile payment services become important electronic payment channel considering that 88 percent of the Malaysian population are subscribing to mobile phone services. The mobile phone network is a popular channel to perform activities beyond voice communication, encompassing all forms of digital communication, commerce, payments and banking. For example, payments via text messaging have become more popular.

There were immense opportunities to leverage on mobile phones to widen the reach and appeal of electronic payment services, and to deliver innovative mobile payment products that offer speed and convenience at minimal cost for the public. It allows anyone to pay to or receive money from anytime, anyone from anywhere securely. Moreover, mobile payments help users to save time as consumers can just use SMS to do payment transaction and do not need to take a long time to make payments. It also allows consumers to do money transaction with ease. They can send or receive money in their accounts from their friends or family in other country through SMS.

Malaysian mobile solutions provider Com2U Sdn Bhd has launched ‘moneyMe’, Malaysia's first operator-independent mobile remittance service, which allows mobile subscribers of Maxis and Digi to securely transfer money within Malaysia and to Indonesia. The services allows immediate money transfer using SMS and there is no fees registration and subscription requires. The first phase of the e-pay integration with moneyMe service has been completed enabling over 5,000 e-pay terminals in book stores, photo shops, mini markets, restaurants, pharmacies and so on, with the moneMe cash-in facility.

Consumers’ Adoption Strategies

There are four primary models for mobile payments which are Premium SMS based transactional payments, Direct Mobile Billing, Mobile web payments (WAP) and Contactless NFC (Near Field Communication). There are few steps to implement mobile payment systems which are discussed as below.

1. Educating consumer about the functions of mobile payments and introduce any new things in the market. For example, bill payments and mobile purchase.


2. Enhancing security of mobile users in order to build consumers’ confidence in the services provided. The security systems must be handled well as consumers are afraid of losses of money during transactions.

3. Collaborating with more banks and merchants to widen the ability to pay via mobile. Mobile payment system collaborates with different banks and merchants which provide a convenient way for consumers to do money transaction with any banks with their choice. In the same time, it also increases consumers’ loyalty and satisfaction in mobile payments.

4. Maintaining customers’ loyalty as companies will reward consumers by giving gifts or vouchers at certain level of purchasing or certain points of redemption. This may encourage consumers continue using the services that are provided.