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.

The application of pre-paid cash card for consumers

A pre-paid cash card is a card that requires the consumer to top-up the card before using it. It means that you need to put some money into the card. Not really squeeze the money into the card. First, you need to go to the counter that provide top-up services and then the employee will help you to update the balance of the card, after that you can use it to buy thing.

Nowadays, pre-paid cash card is very common in our life. It is very convenient, safe, and portable. The consumer do not need to carry a lot of cash to buy thing, they just need to bring their pre-paid cash card only.

There are many application of pre-paid cash card:
1) Buy thing- Consumer can use pre-paid cash card in shopping centre and restaurant.
2) Pay bill- Electricity, water telephone bill and etc.
3) Toll fee- Pay toll fee in high way.

In Malaysia, we can only use pre-paid cash card to pay toll fee. That is Touch 'n Go.
Touch 'n Go is an electronic purse that used in toll expressway and highway operators as the sole payment system. Touch 'n Go uses contactless technology. The card is similar with credit card. User can continuously using the card as long as it is top-up before using it. It is very popular and convenient in Malaysia. It will help driver to save time when they paying toll fee. Besides that, user can use Touch 'n Go card to pay the bus fare.
The Octopus card is a stored value smart card that used to transfer electronic payments in online or offline systems in Hong Kong. It is used to collect fares for the territory's mass transit system. The Octopus card system was the first contactless smart card system around the world. The Octopus car is also used for payment at supermarkets, fast-food restaurants, car parks, and others.
The EZ-Link card is used for the payment of public transportation fares in Singapore. The card is commonly used for paying transportation fees in Mass Rapid Transit (MRT), Light Rail Transit (LRT) and public bus services. The card also serves as a supplementary identification and concession card for students in nationally recognised educational institutes.
The demand for pre-paid cash card is increasingly important and it has been implemented in the countries around the world. Hope that there will be strong improvement in the use of pre-paid cash card in Malaysia.

Credit Card Debts: Causes& Prevention

Open your wallet now, and count, how many credit cards you have?
Check on your monthly bills, how much you have to pay every month for your credit card debts?

Nowadays, nearly everyone has access to a credit card. Many of us like to put some bills onto credit card and try to delay the payment as long as possible. Credit card companies offered different interest rates and payment schedule which you think it is easier and cheaper to solve your bills. But, it actually makes users harder to pay off all the debts. Thus, it created more and more credit card debts and also the interest charges on overdue balances.

So, check out how to build a healthy financial status. We need to find out what the causes of credit card debts are and how we prevent it from threaten our financial health.

1) Poor financial management: we always spending money using credit cards, but when the bills reach your hand, you have no idea where you spent so large amount of money that month. Thus, we have to work out a plan on spending. Therefore, a budget for whole month is really needed. You can just write out your expenses daily, and compare to your income, so that you won’t spend more than you earn each month.

2) Zero saving or too little: once you recognize your expenses each month, figure out 5% - 10% of your income to set aside for emergencies or unexpected expenditure. People used to pay their car repair fees or medical expenses by credit cards since they have no saving for those unexpected fees. So, just prepare some saving to avoid unwanted debts or financial strain.

3) Spending habit: woman mostly, shop for a whole day and just using few credit cards on payment. But they have no idea how much they had spent for the whole day. Every time you pull out the credit card to pay at the counter, the debts is become higher and higher. Credit card is not cash which you can physically feel the thickness it appear in your wallet. So, you must record and limit the amount you spend every time you make payment.

4) Limit the cards in wallet: every credit card has its own set of terms and condition including varying interest rates, penalties, fees, and due dates. Try to bring one or two cards instead of five or six. If you focus all your expenses on two cards, you can easily found the total amount you spent. But, if you pay using different card every time, you will forget the amount you spent and interest rate for each card. Besides, try to compare each credit card companies and find out the lowest interest rates companies.

5) Pay on time: some people used to pay only the minimum amount of monthly bill. But, it actually makes you pay more interest in the future. Because of the universal default clause in credit cards terms and conditions, credit cards companies can raise your interest rate if you are late paying creditor or utility company. Therefore, never make a late payment and try to pay earlier since the interest calculated based on average daily balance. So, the earlier you pay the less interest you pay.

Electronic Currency

In the E-commerce world today, there are more and more advancement and technology in conducting this activity. As for the electronic payment system, people have implemented the electronic currency in today E-commerce trading.

Electronic currency is also known as electronic money, electronic cash, digital currency, digital cash as well as digital money. The use of the electronic money is done through the computer networks, the internet and also the digital stored value system. This money is only exchange electronically. It assisted in the online-based purchases and sales transaction conveniently.

Electronic benefit transfer (EBT) is one of the examples of the use of electronic currency. It is the business-to-business E-commerce which is use to made payment electronically. Additionally, E-Check is also one of the electronic currencies which function as the paper check. It is the electronic version of a paper check with some additional function as compare with the traditional paper check. It is a useful tool to make online shopping payment.

Users may be benefited much by using the electronic currency. It serves as a universal media of exchange which allowed users to make quick online payment ubiquity at anywhere anytime provided that there is an internet connection. With the speed of transferability, it enables the users to send and receive money instantly from anyone all around the globe.

On the other hand, it also provided a safe and secure system to make your payment. Various types of safeguard are there to identify the fraud, chargeback prevention, funds verification, PIN verification and others security system.

People also can invest in electronic currency to make more money. There are only few simple steps in order to enjoy the profits of this investment. A user does need to open an electronic currency account which is free of charge, purchases the electronic currency through the electronic currency processor in their account, invest it in the trustworthy HYIP programmes, transfer the electronic currency profits from HYIP system to your account, and lastly convert the electronic money into real money.

However, there are some issues identified in the use of electronic currency. Problem arises when it come to the collection of taxation. Additionally, electronic currency also creates the ease of possibility of money laundering.

In order to encourage the implementation of this new technology in the E-commerce world, more rules and regulation must be created to solve the inefficiencies in using the electronic currency so that E-commerce could achieve its full potential in the future.

Review on a post on internet security

First of all, I would like to share news in China:
“22 year-old hacker from Hunan steals over 7million RMB from banks”
There is a 22 year-old unemployed man with only a junior high-school education being a hacker and steal money from banks. He purchased a hacking software which used to infiltrate the main computers and websites of Chinese banks to insert “Trojan horse”, and steal the identification numbers, bank account numbers, bank codes, mobile phone numbers and other personal information of banking customers. Thus, he successfully steal over 7 million RMB from the over 300 accounts!

From this news, it means that, nowadays, it is easy to be a hacker, and even easier being hacked! In this e-century, hackers are everywhere. They can hack into your MSN, yahoo, hotmail or others personal websites. That is why we have to learn how to avoid from being hacked! I always receive message from my friends’ msn messenger, sent me some website address link while the sender is appear offline! I feel weird and just ignore it. But, this is actually the hackers who try to send out virus after hacked the user’s msn account. However, after my friend change the password, these things did not happen again.

After reading the password security post in E-Commerce blog, I finally understand why a lot of people being hacked by hacker. They did not care about the security of password. Some people use their name, date of birth as the password that could be easily found out by everyone. Although it may be easier to remember the password, we should change the password every month to avoid hacker. Besides, avoid using the same password for every applications or account login.

I would like to share some ways to create a secure password and STOP being hacked to protect your private personal information. 1. Avoid using personal information: never use your name, spouse name, or date of birth as your password.
2. Do not use real words: try to create your own words that could not find in dictionary.
3. Mix different character types: create a password which include different type of character such as ‘#’ or ‘&’.
4. Use a pass phrase: think a sentence or line from song, and create a password using the first letter from each word.
For example: “I like to wear Nike shoes” we can change it to:‘il2wns’
5. Use password management tools: password management tools can remember password securely and easier for user.

The post I review:
1.http://ecommerze.blogspot.com/search/label/Internet%20Security
2.http://chinanewswrap.com/2009/06/24/22-year-old-hacker-from-hunan-steals-over-7-million-rmb-from-banks/

How to safeguard our personal& financial data?

How safe is our data? Do you know how to protect your data? For me, I only know the basic way to protect my data. Nowadays, my way to protect data is outdated, because there is a lot of software that can easily hack into my data or computer. Hacker is the “most professional people” that steal the data; they can easily steal data without your knowledge. As this is very dangerous for the innocence people, that is you and me, because we don’t know have strong knowledge in protecting our data. In order to adapt to current situation, we need to start to protect our data now.

There are some ways to safeguard our data:
1) Set up password
Setting up password is the most basic way to protect data, but the others can still steal your data if your password can be guessed. We avoid using password such as birthday, name and identity card number, this type of password is can be easily guessed by other people. Besides that, we should not use repeating word in a password e.g. Betty. The length of the password is also very important, we need to set password that is at least 7 words long. Nowadays, when setting up the password there will be an identification of the strengtheners of your password. Remember to set the password that is strong enough to avoid stealing of data. 2) Firewall
A firewall is a part of a computer system or network that is designed to block unauthorized access. Firewalls are usually used to prevent unauthorized users from accessing private networks, especially intranets. All messages entering or leaving the intranet pass through the firewall, which examines each message and blocks those that are unauthorized. Firewall is suitable for individual or organization use. There is a lot of firewall software that are available in the internet; you can download it for free. 3) Antivirus Software
A computer virus is a computer program that can copy itself and infect a computer without the permission of the owner. Virus can increase their chances of spreading to other computers by infecting files on a network file system or a file system that is accessed by another computer. In order to avoid virus hacking our computer, we need to install antivirus software. The software must be very strong enough to “kill” the virus. Besides that, we need to update antivirus software everyday, so there will be strong protection for our data. 4) Log in, log out
When you log in to some website, the website may keep your username and password. This may be dangerous when you using public device to log on to that website. Others may steal your data without your knowledge. So, when you log in to one website, you need to make sure that you have clear the data. This will ensure that your data will not be hack by others. Besides that, when you sign in to one account, you need to ensure that you have sign out from that account, because some people will directly close the window and they think that the account will be automatically sign out. Some website will automatically sign out your account but not all. You need to make sure that you have signed out to the account and make a double check by log in another time to that website.

The threat of Online Security:How safe is our data?

Computer plays a major role in our daily life. Without computer, a lot of tasks couldn’t be done. For example, we need a computer to do assignments, communicate, do online shopping, news feed, and to find information. However, the doubt on how safe is the data disclosed still remains an issue to all Internet users. Crimes don’t only exist in real world but also in Internet. Worries on whether private information such as credit card number will be misused, stolen, loss, or damage still remains. Threat such as phishing, information theft, hackers, viruses and worm are concerns of traders as well. Therefore, traders are still trying their very best to prevent their customers’ information from being stolen, loss, misuse, as well as damage.

1. Phishing

Phishing is an act of obtaining access to passwords, identity details, and credit card information by posing as a trustworthy website such as Maybank2u, Amazon, eBay, and Public Bank through emails or Instant Messaging. Phishing concept is similar to ‘fishing’ whereby the theft leads to bait used to gain personal and financial information. Not only steals information, sometimes phishers also infect the computer with viruses or worm.

2. Information Theft

Similar to phishing, information theft is also a crime of stealing private information thru the Internet. Most popular information theft is the credit card number theft. The use of credit card has widened as people do their purchases online. It is the easiest area to use fraudulent as it has no extra identification number to use. Website without proper security such as free hosting websites is main target. Therefore, purchasing from a trusted entity is much safer.

3. Hackers

Black hat hackers are individual that breaks into others computer system to access forbidden information and cause some damages. However white hat hackers are those that work for big corporation to test out their latest website in order to offer a safe website and program to the public. For example, Maybank hires hackers to try out their website, http://www.maybank2u.com/ to make sure their security are safe enough and there are no loop holes for hackers to break into their system and steal and damages their information.

4. Computer Virus

Computer virus corrupts files and programs in a computer, causing the files and program damages. It infects a computer without the permission or knowledge of the computer owner. Types of viruses include Trojan horse, worms, most rootkits, spyware, crimeware and many more. Computer may be infected by virus thru clicking on website pop up, email links, corrupted files, pendrive, downloads, as well as programs. Installation of anti virus software can minimize the risk of virus attack on ones computer.

Therefore, users are advice to be careful when they are doing any online transaction. Get confirmation from the bank before disclosing any important data such as password and user ID. Moreover, important data in the computer may be abused if one lost their laptops or computer files are corrupted. Therefore, users are advise not to keep personal data such as ATM password, e banking password, or even credit card number in the computer system, but rather write it down on a notebook.

Phishing

Phishing is a fraudulent technique to steal the identity of a company to acquire the sensitive and confidential information of its customers. For examples, the customers’ personal information such as username or password.

Spy-phishing is a phishing technique with spyware programs which target on online banking and other websites. The phisher normally uses SPAM, malicious websites, email and instant messaging to trick users and login into their personal account so that they are able to steal their information. This information is then sending to the fraudster who then uses it, mostly for bank and credit card fraud. This is the most common phishing tactic nowadays.

Phishing has become more and more serious fraud nowadays. As users of the online application, we must protect and prevent ourselves from getting into those tricks.

Firstly, users must verify the authenticity and security of the websites. A user must login to their account by using the company’s official website rather than login through any hyperlink or email. Most of the banking websites are now warning their users not to login through any email or hyperlink and ignore email that require the users to update their personal information. Also, never reply to any email or pop up messages from company that ask for personal information.

Users must secure their computers with the antivirus software and firewall software. They have to ensure all of the software is updated frequently before they conduct any online activities. However, the users are highly recommended to install online anti-phishing software. There are two type of anti-phishing software: blacklist/ white list based and rule- based. The blacklist/ white list based will warn the users whenever they visit those phishing sites while the rule- based will check the security of the visited web site according to the rules established.

On the other hand, education can be provided and users are acknowledged regarding the danger of phishing. The users are taught to understand what phishing is and how phishing can attack and endanger them. The users must also be alert to identify and detect the phishing email. They may block the sites to prevent the phishing attack.

Last but not the least; users can block the phishing email by using anti spam software or spam filter. This filter could scan the contents as well as the information of the email to determine whether the email is sent by the identified sender and thus decreasing the phishing attack.

Example of phishing email of Citibank:

Boo.com – E-commerce failure and its causes

Boo.com was launched 3rd November 1999, with approximately $125million of funding from Europe largest luxury goods group. It was actually a high profile e-tailer website, but due to several serious problems in managing the site, Boo.com had failed in this competing industry.

Boo.com spent a lot for consultancy fees after the launched had been delay for 6 months. The online virtual shopping assistant “Miss Boo” did not successfully helping visitors with purchasing experience. The site was reported slow browsing, poor navigation and irritating technology which caused bad reputation for Boo.com. Moreover, Boo.com can’t fulfill the “three click rules” in web design, which means customer should be able to access to their product information not more than three clicks. Boo.com makes the process over complicated. Besides, computer text appeared instead of graphics causes customers unable to view and purchase the products. Customers’ complaint on the poor online shopping experience that advised customer to limit their transaction discourages customers to drop on the site again. This is because there is no site-testing before it is launched, and they ignore the users of their site.

Boo.com has a nice graphic and 3-D view on the products, but they ignore the price of those products. The bad marketing completely shows where Boo did not fulfill 3 important criteria which are “ease/convenience”, “better prices” and “speed of process”. Furthermore, there is bad planning in expanding their business plan. The management tries to dominate in the market immediately instead of expanding step by step.

Boo.com had lack of sound financial management, due to huge cost spend on technological and employee benefits. Besides, Boo.com did not have a manager to oversee its spending. Instead of cut down the cost, Boo.com employs excessive employees which show a bad human resource management in the company.

The last and the main reason Boo.com fail is where investors refuse to continually inject money into business after it has spent $380 million. This force Boo.com into liquidation and finally it was bought by a US fashion portal, Fashionmall.com.

Revenue model for Google, Amazon.com & e-Bay

E-commerce consists of buying and selling products through computer process and it is quite popular nowadays. Some company focusing on using e-commerce to conduct their business. Some people may be confused that without physical transfer of money, how are these companies going to survive? How are they going to earn money? The answer is through revenue model.

A Revenue Model lays-out the process by which a company actually makes money by specifying how it is going to charge for the services provided. What is the revenue model for Google, Amazon.com and eBay?

Google is a useful and popular search engine; it has many revenue models such as Google AdWords and Google AdSense. Google Adwords is a pay per click advertising program designed to allow the advertiser to present their advertisement to the user. Pay-Per-Click (PPC) is an online advertising payment model in which payment is based on qualifying click-through. An advertiser has to pay every time his advertisement receives a click. When a user search for something, there are some related advertisement will be shown on the right side of the screen. You can see a clear picture as below:

If you are interested to advertise in Google you can log on to www.adwords.google.com for more information.

Google AdSense is an advertisement serving program. Website owners can enroll in this program to enable text, image and, video advertisements on their sites. Revenue is generated on a per-click or per-thousand-ads-displayed basis and the advertisement are administered by Google. AdSense program includes AdSense for search and AdSense for content. Advertisers are required to pay Google a fee each time a user clicks on one of their ads displayed on Google Network members’ web sites. Here is the picture for Google AdSense:

Amazon.com is an American-based multinational e-commerce company. It sell product online such as electronic device, books and games. Amazon is the most successful online-shopping website.

Amazon Marketplace is an online marketplace that allows sellers to sell their product. Buyers can buy new or used items which are sold directly by a third party through Amazon Marketplace; this has created profit for Amazon. Besides that, Amazon will charge a commission rate based on the sale price of an item. When each transaction is being done, Amazon will also charge transaction fee to the seller. In addition, Amazon also allows some user to advertise their advertisement on their website.

eBay is an online auction and shopping website in which people and businesses buy and sell goods and services worldwide. It also establishes localize website in many countries including Malaysia. EBay generates revenue from a number of fees such as insertion fees, promotional fees, and final value fees.

Insertion fees: When an item is listed on eBay, a non-refundable fee is charged.
Final value fees: Fees that charged to the seller at the end of each auction.

Here is an example of the auction:

Every e-commerce business is continuously creating new revenue model in order to bring more profit to the organization. We hope to see a lot of revenue model in the future.