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

As information for everyone, mobile payments are actually payments made using mobile handsets and other devices, either to directly purchase or to authorize payment for goods and services. Such devices are playing an increasing end evolving role in the wider development of electronic payment systems around Asia Pacific, which includes Malaysia. (Sounds cool right)

Mobile payment is also known as collection of money from consumer via a mobile device such as their mobile phone. Mobile payment systems can be used for purchasing music, ringtones, wallpaper and games (such as offered on newspaper and magazine). Most Malaysian buys these kinds of ringtones and games via mobile payment, either via GPRS/WAP or SMS.

Premium transaction is also known as types of mobile transaction Premium SMS transactions are the most common in Malaysia, most mobile users download wallpaper, music, ringtones and mobile games by buying them through SMS payment. SMS payment requires you to send a certain code to certain number to confirm you want to buy those products.

Mobile payment provider is different they uses SMS and Web, it helps to extend the ability of mobile payment. There are few mobile payment providers in Malaysia, such as Mobile Money (http://mobile-money.com.my/index.html) and mwallet (http://mwallet.com/w/mwallet.htm) who provides variety of products and services to every user. By registering an account with mobile payment provider, you can also top up your credit to them and use it to purchase products or services offered by them.

As we can see in nowadays changes, the potential for this market is quite big, since it becomes one of the most convenient methods for every user. Besides, the mobile payment providers have a large market share to be grabbed on. This mobile payment is still new and developing in Malaysia. It has potential to continue to grow as consumer’s confidence on mobile payment increased. Mobile payment providers have most potential for growing.

How Malaysian adopts with mobile payment

Nowadays, with demand for high-speed mobile person-to-person (mobile P2P) payments and transfers are growing, many consumers are saying that they would likely use the service if it were available. Consumers cited speed and convenience as primary incentives for adopting mobile P2P payment services. Besides, the speed at which the transaction is completed should be less than that of the credit card or cash and it should be hassle free. This system should indeed reduce the burden of carrying multiple cards and cash.

In today environment, everyone of us will sure believe that mobile payments would not only bring small transactions within its scope but also would have a higher reach as more people have mobile phones than other forms of electronic payments.

Furthermore, consumers would like the most trusted brands within the ecosystem to be associated with mobile payments. They would want surety about the security of their money as the mobile transaction could be a significant portion of their salary for people in the emerging markets.

Although mobile payment is very convenience but there are still many consumers have phobia in this kind of advancement technology system, so they would rather use complicated but manual processes rather than technology. Hence it is important to have transactions as easy has sending SMS and should be completed with one press of button. Consumers would adopt if there are enough merchants accepting the payments and merchants would want enough consumer pull.

Last but not least, the transaction costs need to be limited in this form of payment to encourage wider acceptance for low value transactions. It should provide a clear monetary benefit over other existing payment and money transfer mechanisms. In case of money transfer or store value accounts, there would be enough physical locations where consumers can cash out. Customer training and education is the key to success. Road shows and awareness programs can be held in malls and other high traffic locations. The success would come only when the rural areas have sufficient adoption.

References:

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

2.http://www.marketingvox.com/to-adopt-mobile-p2p-payments-consumers-demand-speed-and-security-037659/