6.20.2008

Mobile payment system in Malaysia: Its potentials and comsumers' adoption strategies




Mobile Money is a PIN-based Mobile Payment Solution designed to address the limitations and bottlenecks created by cash, cheques and credit cards. It unlocks the power of the mobile phone to make payments, allowing registered users to pay for goods and services at anytime, anywhere using only a mobile phone coupled with a 6-digit security PIN (Personal Identification Number) via SMS (Short Messaging Service). This gives the freedom to shoppers to buy products online and pay the merchant using his/her mobile phone without being physically present at the store.

In relation to the overall mobile operator ecosystem, the following diagram shows the main data flows and relationship between the SMS Payment Suite implemented within the mobile operator environment and the other components:


When it comes to online selling, selecting a payment gateway is one of the major obstacles faced by the merchants in Malaysia. Mobile Money will encourage more consumers to shop online. This will definitely be a great boon to the e-commerce industry in Malaysia. It will encourage the merchants in Malaysia to adopt more online business and get the extra sales channel.

There are many benefits to the merchants and attract them to adopt this system:

          Low transaction and maintenance costs

          Low startup or sign-up fees

          No minimum monthly transactions, No Rental Fees

          No merchants account required

          Selling to anyone, anywhere & anytime

          Gets paid fast and faster turnover in T+2 Days

          Flexible methods to Request for Payment

          Good audit trail and secure ticketing

          Marketing & points system opportunities using the Mobile Money SMS

 

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