Mobile Payment Systems in Malaysia: Its Potentials and Consumers' Adoption Strategies

Nowadays, with the advancement in technology changes, mobile phone not necessary must only be a communication and entertainment tool, it also can be used as a credit card as well. Consumers can make payment via SMS (Short Messaging Services) by using their mobile phones.

Mobile Money Wallet (MM Wallet) is one of the mobile payment systems in Malaysia. It 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 user to make payments, pay for goods and services at anytime, anywhere by using only a mobile phone with a 6-digit security PIN through SMS. This gives the free will to user to shop online and pay the merchant by using his or her mobile phone without being actually present at the store.

In order to make payment via Mobile Money, consumer must have a savings, current or credit card account with participating bank. Mobile Money functions as a Credit Card with the "Pay by Mobile Phone" credit card account. For example, Hong Leong Mobile Credit Card. User of Mobile Money will then be billed by the particular bank accordingly by the end of months. Besides, Mobile Money also functions as a Debit Card if it is tied to user's savings or current account. The amount will be deducted immediately from the account upon successful transaction.

Mobile Money encourages more consumers to shop online. Besides, it encourages more merchants to adopt online selling as an extra sales channel as well. This will positively be a great help to the e-commerce industry in Malaysia. Consumers can enjoy the advantages of Mobile Money in paying bills, paying merchants, paying to anyone at anytime in anywhere with just a mobile phone. It is safe and secure as there is no cash involved along with the operation of PIN (Personal Identification Number).

In addition, Mobile Money brings benefits to merchants as well. With Mobile Money, merchants do not have to be concern of cash, cheque or credit card handling problems or frauds. The Mobile Money Payment System complies with the strict requirements set by Bank Negara Malaysia and the participating banks. Moreover, there are no minimum monthly transactions, rental fee, and merchant account required by those merchants, the particular existing bank account will be sufficient. The sign up fees for merchants are low. There are only RM100 for Retailers or RM300 for Corporate, which chargeable after the first 10 transactions. This helps merchants to save cost.

Mobile Money payment system really bring lots of benefit and convenient to both consumers and merchants. It allows consumers and merchants to pay someone and receive money from someone at anytime from anywhere with just one SMS. Mobile Money Payment system is very secure and it is a closed loop payment system. Consumers are encouraged to adopt this payment system during online shopping. Merchants and bankers should work together to promote, advertise the usefulness and benefit of Mobile Money to consumers as it saves time, easy, convenient, secure and it indirectly contributes to the e-commerce industry in Malaysia.