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

Mobile Payment—is a service of paying for goods or services by mobile device such as mobile phone, Personal Digital Assistant (PDA), or other mobile devices.

How Mobile Payment works?

Step1.

Customers choose to pay via mobile phone for the goods or services from the merchants.

Customers are required to give merchant his/her mobile number via phone, fax, email etc.

Step2.

Merchant can bill the customer via SMS with a Bill Reference Number to customer requesting customer to reply with their 6-Digit Security PIN to approve the payment

Step3.

Customer authorizes payment by replying the SMS with the Bill Reference Number and customer's 6-digit SECURITY PIN.
SECURITY PIN is used on requests for bank.

Step4.

Upon receipt of bank's confirmation to debit customer's mobile credit account or mobile Debit account, a payment notification with details to merchant as well as customer will be sent.

Step5.

Merchant can deliver the goods or services to customers.

Potentials

Mobile payment in Malaysia is still new and developing. The market is quite big because it is very convenient to use mobile payment, and this really helps especially when consumers are in need of cash but doesn’t have any in hand.

Strategies:

1. Let more consumer know about how to use mobile payment and introduce its function to them.
2. Collaborate with more banks and companies to increase the customer’s satisfaction.
3. Strengthen the security to make the consumers to be more confidence.

Related link:
http://www.neowave.com.my/mobilemoney_howitworks.asp