A review on a post on e-tailing from My E-Commerce blog.

I had done a review on a post on e-tailing from My E-Commerce blog that is using Touch n Go card to buy fast food in Malaysia will be a reality. Previously, Touch n Go card famous for its usage as a pre-load cash card that can use it for toll, car park, public transportation like LRT and Themes Park. Touch n Go card also used by Malaysian toll expressway and highway operators as the sole electronic payment system. But now, Touch n Go card has expanded its function to use it on Fast Food Restaurant.

Card holder can buy burger, doughnut or fast food from 21 outlets in Malaysia. The participating outlets are A&W, Burger King, Dunkin’ Donut, 7-eleven, Carrefour hypermarkets, Caltex convenience stores and Cineleisure. The next time when you go to a fast-food stall for your burger or doughnut, don’t worry if you have forgotten your money as all you need is your Touch ’n Go card.

The card can also be a good way of controlling children's spending as this could be their one card from taking public transport to buying their lunch or snacks.We need not worry about any hidden cost because there will be no extra charges for those using Touch n Go card. If the item is RM1 then it will still be RM1 if you use card. The card can be reloaded through bank, retail shop, 7-eleven. It will not be troublesome for us to reload the card.

In my point of view, Touch n Go card had brings a lot of benefits to us which makes our life become more convenient.

The application of pre-paid cash card for consumers

What is prepaid cash card?

A prepaid cash card is similar to a debit card. The major difference between prepaid cash cards and debit cards is that prepaid cash cards are usually anonymous while debit cards are usually issued in the name of individual account holders. Prepaid cash card is a plastic card encoded with monetary value on a magnetic stripe. It is an effective replacement for cash and has many applications for low-value retail purchases.

The most popular prepaid cash card in some countries:

In Malaysia,

Touch ‘n Go is used by Malaysia toll expressway and highway operators as the sole electronic payment system (EPS). The card is embedded with Philips’ MIFARE microchip technology. Touch ‘n Go card is not only applicable for toll fare but also parking services, public transport, theme park and cashless payment at retail outlets. The card can be reloaded at toll plazas, train stations, Automated Teller Machines, Cash deposit Machines, Petrol kiosks and at authorized third party outlets.

(Click here for information about where to use TnG)

In Singapore,

EZ-Link Card is a contactless smartcard based on Sony’s FeliCa smartcard technogy. It is used for payments in Singapore especially for transportation. It was established in 2001 as a means for faster travel due to speedier boarding times in buses. As of 2007, there are over 10 million EZ-Link cards in circulation, with 4 million card-based transactions occurring daily. The card is commonly used for paying transportation fees in Mass Rapid Transit (MRT), Light Rail Transit (LRT) and public bus services. It is now increasingly being used in libraries and all sectors of retail from leisure to dining to shopping.

(Click here for information about where to use EZ-Link Card)

In Hong Kong,

Octopus Card is used to transfer electronic payments in online or offline systems in Hong Kong. The Octopus card can now be used to pay fares for all public transport in Hong Kong and to make purchases for consumer products at many stores in the city. It is accepted by more than 1,000 merchants by now. In addition, the security of the Octopus card system would be jeopardized should the access key be exposed.

(Click here for information about where to use Octopus Card)

The increasing issues of prepaid cash card in many countries indicate a apparent trend in holding prepaid cash cards. The growing needs are resulted from the numerous benefits of prepaid cash card. For the first, it is an ideal way for users to budget themselves and there is no chances of spending too much as users are limited to the amount they put on their cards. Prepaid cash card also enhances the speed of paying for low value but high frequency transactions. Apart from the speed, it is also very convenient because users no longer need to prepare for small change or wait in queue at the cash lane to complete the transaction.

Credit card debts: causes and prevention:

Money can buy almost everything or can it be said that credit cards can buy everything now. Nowadays, it’s a common sight to see every people to pay for everything from groceries to gasoline. However, the convenience of using credit cards can lead to severe credit card debt problems especially the global economic is now in the shadow of recession and highest unemployment rates. There is no doubt that credit card debt is one of the leading causes of financial trouble for people today. There are numerous ways that a person might find himself or herself in credit card debt. Below are some of the causes of credit card debts.


1) Poor money management.
Without a monthly spending plan you have no idea where your money is going. You may be spending hundreds money unnecessarily each month. Thus it is essential to have one. Planning is just writing down your expenses and income and reconciling the two. Through an effective planning, you will be save a lot during monthly spending.

2) Unemployment
The global economic is now in the shadow of recession, this lead to the highest unemployment rates. People, who faced unemployment, may use credit card to pay their cost of living and they may found difficult to pay back the money.

3) Irresponsible spending.
These days, people want things and want them now. Credit cards enable impulse spending; it can be very difficult for some people to control their spending and lead to credit card debt.

Problems with credit card debt have been a worldwide phenomenon; many people around the world seem to be lost regarding how to solve them. Here are some useful tips in order to prevent credit card debt.

1) Keep good management of your finance.
With a good financial management plan, you can become more prepared and more organized and even won’t choose to use your credit card. Buy only those things that are necessarily.

2) Use only Cash.
The best solution for dealing with credit card debt is avoided using your credit cards to make daily purchase like groceries so you don't pile on any more debt. However, if you prefer not carry too much of cash, you can get yourself a debit card which have the same function as credit card.

3) Cut spending.
In order to control of your credit card debt, you will have to change your spending habits. Using the information in your budget to guide you, such as cutting unnecessary expenses, and see if you can also lower the amount you spend on necessary bills. Use all of the money you save to pay off your credit card debt.

4) Control yourself.
People who know his or her limits and applies it to his or her daily life is a person who can control his spending barrage. The one thing to remember regarding the use of credit card, it is still your discretion. You can use it or you can choose to save money instead.

5) Always pay on time.
One of the most essential factors of credit card debt prevention is pay your balance in full on time to avoid debt. People who can control their finances and manage their card payment schedules are the ones who not often obtain credit card debt.

6) Keep your credit cards to a limited number.
Most of the people have too many credit card, this make them have mounting credit card debts. Choose the right card for you. If you want to have a card that you can use everywhere, try just having a Visa, MasterCard, or American express card which are all used everywhere. To avoid apply too many credit card.

7) Choose the right card for you.
This is one of the most important initial steps regarding your credit card use. Choosing the exact card serves you the entire well. Cards that have low or no fees at all and have interests that are low also, are the ones that are preferably appropriate especially to those who are only beginning to use credit cards.

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