Mobile Payment systems in Malaysia: Its potentials & Consumers’ Adoption Strategy

Mobile phone is so popular today that it is designed with so many incredible features. One of the latest features is whereby phone user can use their mobile phone to do their payment. Unbelievable but true. It is where mobile user that uses this function supported by their Smartphone, Cellular phone, Personal Digital Assistance (PDA), or even mobile phone can buy groceries, electronic devices, clothing, books, and many more and make the payment using their mobile phone. The whole idea is similar to a credit card. The concept here is that user can make their payment or transaction using their mobile phone instead of bring whole load of cash. It is much safer and save the user a lot of time from traveling to the bank and queuing up to withdraws money.

The first mobile payment service, Telemoney, was launched in November 2001 in Malaysia. Telemoney was the first company that offers mobile payment services in Malaysia. One needs to have a GSM mobile phone and a Telemoney personal identification number in order to connect to a credit card, debit card, store valued card, bank account and also phone account. In April 2009, the revolution of mobile payment was seen when the first contactless mobile payment services were launches by Maxis communication together with Nokia, Visa, Maybank and Touch and Go. The features of the contactless mobile payment includes credit card, debit card, ticketing and transportation payments to be integrated into a mobile phone.

This innovation offers its customers a lot of benefits. Customers Life is more convenient when they are making payment for toll charges, transportation fees such as Rapid KL, convenience store, retail store, buying movie ticket online or e-ticket, as well as paying for parking fees. This speed up all transaction and customers need not bring any cash in hand. This indirectly will reduce crime rates. Moreover, customers need not to waste time queuing up to pay bill or even going to ATM to withdraw money. Customer’s data is secured by a pin fraud protection patent whereby it offers security and prevention from hackers. This leads to customer’s satisfaction and confidence in using the mobile payment. In addition, it acts as a competitive advantage for the country by helping the country to boost its economy. Multinational companies should collaborate together to enhance the mobile payment services in order to offer customers more new and innovative products in order to maintain customer’s loyalty.