Friday, July 3, 2009

The potential and consumers' adoption strategies of mobile payment system in Malaysia


The meaning of the mobile payment is allows you to make payments to selected merchants by using your mobile phones. As mobile payment has become more and more popular, consumer not only can pay their bill and purchase of goods and services among the cashless transactions, it also can enjoy the benefits of mobile payments by register and open an account with mobile payment service providers. But the important is your mobile phone or smart phone must provide a support for GPRS/ GSM.

First Mobile Payment System

Malaysia’s first mobile payment system was launched in lately November 2001, TeleMoney, it is the first mobile system that provide service via multi-channel access for Internet and wireless transaction. Through the TeleMoney, it can connecting to a credit card , debit card, stored valued card, bank account or even the phone account. Besides that, there is a System@Work which is offer Internet and mobile commerce services perform as a master merchant while Hong Leong Bank is acts as a settlement, clearing and payment bank for the service in Malaysia.

Beside that, some of the mobile payment system available in Malaysia is Mobile Money and SCAN's Mobile Payment System. 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 bills at anytime, anywhere using only a mobile phone coupled with a 6-digit security PIN (Personal Identification Number) via SMS (Short Messaging Service) or MM ATM application. (For more details about MM ATM, please visit here)



World’s First Contactless Mobile Payment System Launches in Malaysia

In April 2009, contactless mobile payment service utilizing Near Field Communication (NFC) technology was introduced by Visa, Maybank, Maxis and Touch n' Go. And yet, Maxis has launched an integrated mobile payment service, Maxis FastTap that uses near field communication (NFC) technology.

NFC is a short-range wireless technology that allows communications between devices at close range. As an open platform technology, NFC offers high levels of interoperability between devices and readers and is now the global standard for contactless mobile payments, with a wide range of features that allows credit card, debit card, ticketing and transportation payments to be integrated into a mobile phone.

Maxis FastTap is an integrated credit card and transit payment applications on a Nokia 6212 classic device. With using Nokia 6212 classic phone, consumer enables to purchase goods and services at more than 1,800 Visa paywave merchant locations.


In conclusion, mobile payment services in fact have great potential and advantages. When a merchant has subscribed to mobile payment instead of credit card payment system, it can save more on maintenance cost and startup fee. Merchants can also make an extra sale through offline network. On the other hand, it also brings convenience to consumer such as consumer can enjoy with low-value transaction over such non-traditional means.

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