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

Malaysia being a country with over 25 million in population and 21 million mobile subscribers as at the end of year 2007, there is definitely market opportunity for mobile payment system.

The current mobile payment system that is available in Malaysia is Mobile Money (MM Wallet). Mobile Money is a PIN-based Mobile Payment Solution designed by Mobile Money International Sdn Bhd to address the limitations and bottlenecks created by cash, cheques and credit cards. It allows registered users to pay for goods and services at anytime, anywhere using only a mobile phone coupled with a 6-digit security PIN via SMS.

In order to pay using Mobile Money, a shopper must have either a savings, current or credit card account with participating banks. It functions like a Credit Card if a shopper applies for a "Pay by Mobile Phone" credit card account (eg: Hong Leong Mobile Credit Card) and it functions as a Debit Card if it is tied to shopper's savings or current account.

In order to encourage consumers to adopt mobile payment system, we must know what are the advantages of mobile payment system. The following are some of the advantages of mobile payment system:

• Queue avoidance

• Enhanced payment instrument availability

• Complement to cash

• Digital content and services, e.g. ticketing

• Small value purchases at point of sale, e.g. vending

• Trust in m-payment service providers, e.g. Banks

• Can be use when suddenly need for payments

• Can be use when lack of other payment instruments

• Need to make payments remotely

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