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

What is Mobile Payment System?

Mobile payments (also known as mobile web payments or WAP billing) are a collection of money from consumer via a mobile device such as their mobile phone, Smartphone, Personal Digital Assistant (PDA) or any other devices.

The mobile payment can be used to purchase any number of digital goods and physical goods. For example digital goods are ring tones, games, wallpaper for mobile phone and the booking cinema ticket and air ticket. Usually purchase digital good are through by SMS based transaction payments or mobile web payment (WAP).

In Malaysia companies like Maxis and Celcom, they provide this kind of services by selling caller ringtone, true tone, and some wallpaper on their websites. In certain times they also send messages to their user to sell some concert ticket, some promotion as well.

Potentials
The market for Mobile is large, because it is very convenient to use mobile payment. This mobile payment is still under 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.

To put it simple:
1. Market still at developing stage
2. Many mobile phone users
3. Low competition

Strategies:
1. Educate consumers about mobile payments, how to use and introduce its functions (e.g. bill payment, mobile purchase)
2. Enhance security and confidence to mobile users
3. Collaborate with more banks and companies to widen the ability to pay via mobile at the same time it helps to increased customer’s satisfaction and confidence

4. Maintain customer’s loyalty

Reference:

• http://searchmobilecomputing.techtarget.com/sDefinition/0,,sid40_gci772807,00.html
• http://en.wikipedia.org/wiki/Mobile_payment
• http://www.mymode.com.my/html/new/index.jsp