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

Mobile Payment is paying for goods, services or bills with a mobile devices such as mobile phone, Personal Digital Assistant (PDA), or other devices. The phone network can be used solely as the channel to authenticate the customers, or the payment can involve a debit to an account held by the customer with the mobile operator or other services provider.

In Malaysia, they are several service providers which are:

Mobile Wallet is enables it networks of users to make payment to any Mobile Wallet's appointed network of merchants to accept MW points.

Mobile Money unlocks the power of the mobile to make payments at anytime, anywhere using only a mobile phone coupled with 6-digit security PIN via SMS.

SCAN's Mobile Payment System(MPS) is designed and built by SCAN, the leading ICT Security Solution Provider where the payment can make via mobile network coverage for sending or receiving SMS.

Maxis Communication Bhd in collaborations with Nokia,Visa, Maybank and Touch 'n Go has launched Maxis Fast Tap, an integrated mobile payment services that utilises Near Field Communication (NFC).

Potential of Mobile Payment and consumers' adoption strategies

In Malaysia, 88% of the Malaysian population subscribing to mobile services. With a huge amount of mobile phone subscribers in Malaysia, there are opportunities to accelerate the migration to electronic payments. It also support with the banking system in Malaysia has 55 million deposit accounts. The high percentage of mobile phone subscriber and the high rate of participation of the population in the banking system are important pre-conditions for significant use of mobile payment.

Mobile payment increase operational efficiency and improve productivity levels through expedient payments and receipts of funds. It speed up the payment process and convenience of making payments from any places or time. It also reduce costs through the reduction or redeployment of resources used for handling cash and cheques.

For example, Visa launched the Visa payments services for point-of-sales transaction via NFC. In Malaysia, this service is provide under Maxis Fast Tap. Maybank Visa holders need to download theirs Visa payWave credit account details to their Nokia 6212 handset over the Maxis wireless network. The user can begin make purchases at any merchant outlets which accept Visa payWave once the account has been personalised in phone. For any successful transaction, the purchases amount will appear in the consumer's credit card statement.Beside that, the Touch 'n Go services allow the user to pay for metropolitan transit system, bus terminals, highways toll, car parks and more.

The following services provider are mainly using SMS to make a payment. With the payment via SMS, the user can easily do the transaction in anywhere and being secure with the security PIN number.

With SCAN's Mobile Payment, the users no need to login to the online banking sites. The users can transfer money,pay bills,meals or taxi rides as long as both parties have mobile phones and bank accounts.

Another mobile solutions provider Com2U Sdn Bhd gas launched 'moneyMe' which allow a mobile subscribers of Maxis,Digi and Celcom to securely transfer money within Malaysia and to Indonesia. The service allows instant money transfer using SMS and not requires registration and subscription fees.

The mobile wallet able the users paid bills such like phone bills, utility bills and education fees. It provide MW KIOSK services to reload the mobile wallet. It provide the user to set out the monthly expenses and e-reload the mobile immediately.

To adopt more consumers, the company should ensure the users have clear image on how the mobile payment take place when making payment. Before the users sign up the facility, the provider should explain clearly to consumers. The users also had to frequently check their account balance.

The mobile payment service providers must provide a secure payment process to make sure all the transaction is paid to authorise person. This problem might occur when the consumer lost his phone and make fraud payments before the owner notice. How this problem to be solve and who are being responsible. The company should develop solutions when this problem occur.

To attract more users, the mobile payment company should collaborate with more merchant or bank. This will convenience the users to make payment any merchant shop and reload at any bank. As the result, it will increase more users to sign up the facilities. The company can also having some reward to their consumers as they sign up the services and provide some bonus point to each money they consume.

In my opinion, there were some disadvantages. Firstly, the Maxis Fast Tap only allow the user to have the service using Nokia 6212 phone. This is inconvenience the user who has other phone model. Secondly, when the user lost the phone and there were some payment make by unauthorised person, who going to be responsible. This question had been arise past few years in credit card payment. Lastly, the service providers should always update the security system and cooperative with bank and Bank Negara Malaysia.

References:
http://www.theedgemalaysia.com/technology/16929-visa-rings-in-on-mobile-payment-space.html

http://www.mobile88.com.my/News/read.asp?file=/2007/11/9/20071108201348&sec=News

http://newscentre.msc.com.my/articles/620/1/Malaysias-first-operator-independent-mobile-payment-service/Page1.html

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

Application of pre-paid cash card

There are various types of cash card in the market which enables the people to have many functions and benefits with their payment in a transaction. The most common cash card that people using are credit card which is a card enables us to purchase something and pay the bills later.

In contrast to credit card, there is also a cash card named prepaid cash card, which is also known as debit card in the current market. Debit card has become more and more popular around the world today because it brings benefits to people and it is convenient.

Prepaid card offers the same ability as credit card to purchase a product or services but with a crucial difference, which is we can only spend the amount we have in our account balance while credit card we can spend up to the limits that allowed by the financial provider. This also means that by using prepaid card, we will not running into debt and the risk of unable to pay off the bills.

Prepaid cash card are offer by most of the banks around the world and we will be given our pin number for the card when we apply for the card. As long as our prepaid cash card has money credited, we can use it to purchase goods on the street, online purchase or paying bills as well as cash withdrawal from ATMs.

Prepaid cash card benefits us with the risk of losing our cash on hand. For example, if we lost our purse or got stolen, our cash in the purse will gone but if we have the card with us, we have the choice to not hold so much cash on hand. If our purse got stolen, we can call to the bank to stop the card to function immediately.



Apart from this, it also enables us to control and budget our spending more easily. This is because we will be provided an online statement which we can view it anytime to look at what, where and when we bought something. In other words, we can trace our spending by using prepaid cash card and thus we can have a better control of our spending.

Furthermore, we would not have to worry when we are lack of cash when in other countries because the card can be use worldwide to purchase a good or withdraw moneys.

In conclusion, prepaid cash card very popular and getting more and more users because it is safe to use and it has bring us with a lot of benefits and functions.

Refer to:

http://www.moneysupermarket.com/c/prepaid-cards/guide/

Credit card debt: Causes and Prevention

The causes and prevention of credit card debt



I believed that nowadays consumer might have a credit card on hand. Especially for employees whose salaries become RM 1500 above every month. Credit card debt is consumer debt which has to pay off every month. Credit card debt also called as revolving debt. The credit card debt included mortgages, household and monthly expenses. Consumer had excessive debt since they bought more than they could pay off every month. Furthermore, they only simply paid for the minimum amount of the month and accrual to the next month. This might due to credit card debt fueled continued economic growth.


In no particular order, there are certain common causes of debt includes medical problems, relying on credit cards, allowing for “fun” within the budget, reduction in income and failed business.





Medical problem considered is a debt to the consumer because the illnesses and unexpected medical emergencies could result the huge amounts of medical debt immediately. Consumer can not prevent using credit card such expenses during an emergency.

Another cause is consumer too relying on credit cards. Exactly, credit card is valued for consumer convenience, however, consumer using credit card as extra income. If consumer is purchase term are not meet their needs but request, then may be on the verge of serious debt trouble.

Besides that, allowing for “fun” within the budget is indicating consumer is spending the entertainment expenses for the first to go. Even though they are tight in money and expenses should have to be cut.

Failed business is a cause of debt which means people whose start-up a business fail and face the financial position. Particularly for small business, the business owner become personally liable for the debt incurred on behalf of the business.

In addition, people loses some portion of income that they is used to, it can be tough to adjust. Since people are spending their income as usual in daily. If people continue spend the same amount with reduction in income, definitely the income could not cover the expenses and people will in doubt.

Since the credit card debt causes is increasing in economic, however, there are some ways to prevent the causes of credit card debt growth.

Debit card is one of the benefits to avoid credit card debt. Consumer purchase the item paid through debit card and the expenses amount directly linked to the checking account. This due to most people cut down on frivolous purchases as opposed to using a credit card.



Besides that, pay everyday charges and bill with cash term. Reserve the credit card for emergency purposes only. The best way is people pay off the credit card every month on time, it will be building positive credit as well.





Understanding the card as well as understand the credit card benefit, minimum payments and limit of the amount. Nowadays people know how to apply and how to get approved for a credit card but has no clue what is the interest rate is. Therefore, the knowledge truly is the power and stated “the more people know the less likely people are push themselves into a corner”.

In effect, the uses of credit card have both positive and negative ways. People should be known how efficiency to use credit card and how to prevent has a credit card debt. Therefore, people must consider and responsible in debt before apply and approve a credit card.



related link:
http://www.ehow.com/how_4512115_avoid-credit-card-debt.html
http://www.debthelp.com/kc/247-top-20-causes-debt-part-ii.html

Electronic Currency

Electronic currency also called e-money, electronic cash, electronic money, digital money, digital cash or digital currency. Usually involve used of several systems, such as internet, computer network and digital store system. It is also refers to the money or scrip which is exchange by electronically.


By using the e-currency service on the internet like e- gold and paypal provide a convenient, secure, and cost effective for people. E-gold is a digital gold currency operated by Gold & Silver Reserve Inc. under e-gold Ltd., and is a system which allows the instant transfer of gold ownership between users. Besides that, E-gold is payment system that can let people to use gold as money.


On the other hand, PayPal is how business transaction parties send and receive money online. PayPal is substitute traditional paper methods such as checks and money orders. We can use it to make payments globally through the internet.



Pro of E-currency
The using of the E-currency services, people no longer use their credit card making online payment. Since there is the risk of expose of their credit card confidential information. While E-currency can help us avoid this kind of problems.

The E-currency system are using through the internet, provide convenience for all the users. Since the internet can accessed anywhere in the world. For example, when user wants to make payment into the bank, they do not have to actually go to the bank to make such payment. The online system also provides convenience to the user, as he or she does not have to queues, waiting for the payment.

Cons of E-currency
One of the major cons of E-currency system is fraud. If the private key is misplace by the consumer, and used by a perpetrator to withdraw funds. In this case, the bank wouldn’t even know, hence the consumer will be liable by self. Due to this reasons, of course, the risk is even greater in traditional forms of payment.

In fact, E-currency system depends a lot on the technology. We will worry that, if the power failure, unavailability of internet connection, undependable software and loss of records, especially when we rush to do the transaction. All this problems will add difficulties to users.

In conclusion, more and more advanced technologies provide a lot of convenient for us. However, we need to be carefulness when we using it, to avoid other people stolen our confidential information.

Related link:

http://www.e-gold.com/benefits.html

http://www.buzzle.com/articles/pros-and-cons-of-electronic-cash.html

http://www.latestbusinessupdates.com/3-top-advantages-and-disadvantages-of-the-electronic-currency-payment-system.html#more-218