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

Mobile payment (m-payment) is a wireless-based electronic payment system that enables a person to make payment for purchases of goods and services using the person’s mobile device such as mobile phone, personal digital assistant and smart phone. In Malaysia, Mobile payment system is widely used. Malaysian mobile users can use their mobile phones to pay for services such as ring tones, games and information services through short message service (SMS), and payments are charged on their mobile phone prepaid credit account or on their monthly mobile phone bill.

Users can also purchase good and services such as prepaid airtime reloads, mobile content, movie tickets and utility bills payments by means of SMS.

“ In April 2009, Maxis, Visa, Maybank, TnG and Nokia collaborated to provide

mobile contactless payment via Near Field Communication (NFC). The service enables customers to make payment by waving their mobile phone at designated contactless readers to pay for retail purchases and paying for toll, transit, parking and theme park charges. The payments are done by debiting customers’ Touch ‘n Go prepaid accounts or by charging via the Maybank Visa credit card. ” Click here: Payment systems report

In year 2009, a study conducted by the Central Bank of Malaysia revealed that cash is still the preferred payment method by both consumers and merchants and payment cards remained as the most popular retail payment mode. Therefore the adoption level of consumers on mobile payment system is considered low. The factors that may affect mobile phone users to use mobile payment system are lack of awareness on the availability of mobile payment system, speed, reliability, security, availability of specialised hardware or software and merchant fees. 

“ Considering the market potential and the government’s effort in spearheading its usage, mobile payment present enormous business opportunities for the right industry players. ” Click here: D781 - 4G Mobile Payment Solution with MT100 Mobile Printer

The system has great potential and the advantage to become important an electronic payment channel, considering the high percentage of mobile phone service subscribers and the benefits provided by the system. By increasing the attractiveness of the mobile network as a payment channel, the system can become an important payment channel. Click here: Mobile Phone Can Become Important Electronic Payment Channel, Says BNM



 

How mobile money works

Reference(s):

BNM. (2009). Payment systems report. Retrieved Feb 14, 2011 from http://www.bnm.gov.my/files/publication/fsps/en/2009/cp04.pdf

Hwangsolo. Nov 27 2010. D781 - 4G Mobile Payment Solution with MT100 Mobile Printer. Retrieved Feb 14, 2011 from http://ideas.myprize.my/ct/ct_a_view_idea.bix?c=9B37EAC7-43E0-4841-A1C1-9B13D7D2CCEE&idea_id=%7BA17D1CBB-4239-44B6-AFFA-2C91B5F4D5EA%7D

Hanis Sayuti. (June 3 2008). Mobile Phone Can Become Important Electronic Payment Channel, Says BNM.  Retrieved Feb 14, 2011 from http://newscentre.msc.com.my/articles/519/1/Mobile-Phone-Can-Become-Important-Electronic-Payment-Channel-Says-BNM/Page1.html