Mobile Payment Systems in Malaysia: Its Potentials and Consumers' Adoption Strategies

Mobile Money is a PIN-based Mobile Payment Solution designed by Mobile Money International Sdn Bhd 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.

When it comes to online selling, selecting a payment gateway is one of the major obstacles faced by the merchants in Malaysia. There are too few choices available, worse, none of these limited choices are cost effective.

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 surely encourage more merchants to adopt online selling as an extra sales channel which complement perfectly with their offline sales channel to help them sell more of their goods and services.

Potentials and Customers' adoption strategies

1) Sell to Anyone, Anywhere at Anytime - The merchant can now sell to people across town, across the country and take payment around the clock, which is not possible with current payment systems. Online selling (e-commerce) becomes a practical means for merchants since customers will only need to enter their mobile phone during checkout from merchant e-commerce website.

2) Safe and Secure - With Mobile Money, merchants do not have to be concern of cash /cheque/credit card handling problems or fraud. The Mobile Money Payment System conforms to the stringent requirements set by Bank Negara Malaysia and the participating banks.

3) Multi Methods to Request for Payment - Merchants have multiple mode of operation to request for payments. You can use an IVR, SMS, Mobile Money Website, or even real time Mobile Money Weblink API weblink that can be integrated with your POS (Point of Sales) System or online storefront system.

4) Refund and Reversal Features - Merchants are allowed to do reversal (within same business day) and refund (within 10 days from transaction date).

5) No Minimum Monthly Transaction, No Rental Fee, No Merchant Account Required - Release yourself from the pressure of hitting the minimum monthly transaction amount to waive the rental fee, which typically runs at RM150 or more per month. Furthermore, you don't need to have a merchant account to apply for Mobile Money, your existing bank account will suffice. It will easily save you RM50,000 which you need to deposit in your merchant account with banks.

Since there are more than 16 million mobile phone subscribers in Malaysia, it is inevitable that mobile phone will become a payment tool. Mobile Money enables the mobile phone to function like a credit card and it allows users to pay from wherever they may be.