Mobile payment systems in Malaysia: Its potentials and consumer's adoption strategies

Mobile has been emerged in the beginning to make our life easy and convenience. Mobile payment system has adopted and widely in Malaysia. However, as our world is marching into era of globalization and technology, it is definitely not an eccentric scene to see almost every Malaysian own mobile phone and utilize services provided by a communication company, including mobile payment. Hence to say that mobile payment has bright and vast potential in the market.

Payment can be made via mobile at anytime, anywhere. It is so easy and convenient. This is what everyone is craving for. By using mobile payment, payment is no longer necessarily to be done in offices which involved tedious and troublesome steps. Thus, payers do not have to worry of being stuck in a long queue to wait for their turns, either to make payment or to withdraw cash in banks. It can also solve payers’ fears especially unable to make payment on public holidays due to busy working, forgetful or outstation. In short, all payment procedures can be completed feasibly on their fingertips in short time at anywhere, anytime by using mobile payment.

Mobile payment is very efficient that faulty error can hardly occur. All the steps are executed by programmed computer systems when conducting transactions via mobile. Problems such as errors caused by negligence, recklessness and unawareness by both the creditor and payer can be avoided. All information involved is distinctly and clearly stated in SMS (Short Messaging Service). This can minimizes confusion encountered by users.

Besides, mobile payment does not involve cash or cheque transfer in places that exposed to those with evil/greedy intention. This payment system is all based and working on enhanced secure pins which only known by payers. Payers and creditors can safely and successfully do transaction and make revenue. The example of mobile payment are like mobile banking, mobile wallet, pay-as-you go or contactless card technologies. Recently, Maxis had also invented a mobile payment service, Maxis FastTap.

Here is an illustration of how mobile payment being conducted:

(Images taken from http://www.neowave.com.my/mobilemoney_howitworks.asp)

Consumers' adoption strategies to make payment using mobile:

• Educate consumers about mobile payments system which is convenient and easy to use in their daily life, introduce its functions, ways of using it and explain the advantages and benefits to convince and confidence of using it. (Examples are mobile banking, bill payment, mobile purchase and etc.)

• Approach and visit information booths available at your place to know more information about mobile payment and guidance will be instructed by professionals on how to use mobile payment system effectively and safely. (Example, the company has promoted, launched many ceremonies and set up information booths to reach the customers and channel their benefits to the customers. It is available in many places such as in Midvalley Megamall, Pavillion, Times Square and etc.)

• Do more research on mobile payment systems and understand the systems progression before register and subscribe to mobile payment service through internet.

• Ask and learn from friends, relatives or families whose have experience using mobile to make payment to purchase goods or services without being physically present at the store.

Mobile payment system is suitable to adopt in e-commerce industry which gives customers to shop online and make online payment easily. In cooperation with government, mass media, communication companies that offer this services and consumers, the aim to make mobile payment as their payment habit will become successful.