Mobile Payment System in Malaysia: Its potentials and customer's adoption strategies

Mobile payment, also referred to as mobile web payment or WAP billing, is the collection of money from a consumer via a mobile device such as mobile phones, Smart phones or other such device. These years, the introduction of mobile payment systems has gained a lot of attention from telecommunication and financial firms in Malaysia such as MayBank and Maxis.

Cell phones are the most suitable medium to develop this system because it can be done at anywhere and anytime. The examples of payments through mobile are ring tones purchasing, airlines ticket purchasing and so on. Other common applications will include payment for transportation, parking, restaurants, convenience stores, retail outlets, e-tickets to name a few - typically for low-value items. This helps especially when consumers are in need of cash but not for those who doesn’t have any in hand. These systems had developed very fast in Malaysia because it is convenience and lower the risk of consumer being rob.

As the adoption strategies for consumers, those firms which use this system will reward their customers with free gifts and discounts.

Payment systems' security is one of the main barriers to electronic and mobile commerce transactions. The key requirements for secure financial transactions in electronic environment include confidentiality, data integrity. Other security factors which important for consumer adoption are anonymity and privacy, which relate to use policies of customers’ personal information and purchase records.