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Tuesday, July 7, 2009
Mobile payment system in Malaysia: Its potentials and consumers’ adoption strategies
Mobile Payments (M-Payments) Introduction
According to Wikipedia, Mobile Payment is collection of money from consumer via a mobile device. It is new and rapidly-adopting alternative payment method instead of paying with cash, check or credit cards, a consumer can use a mobile phone to pay for wide range of services and digital or hard goods such as purchasing music, videos, ringtones, online game subscription or items, wallpapers and transportation fare.
November 21, 2001 the first mobile payment system has applied in Malaysia, people can enjoy the secure and convenient way to conduct mobile commerce using a GSM cellular phone. TeleMoney, the country's first mobile payment service and it is expected to fully operational in the first quarter of 2002.
Besides that, Mobile Money International Sdn.Bhd. is a Mobile Payment System which allows customers to send a payment request through an SMS text message by personal identification number for authorization to make payment.
Potentials:
The mobile payment industry will experience steady growth, as the number of mobile payment users worldwide will total 73.4 million in 2009, up to 70.4 percent from 2008 when there were 43.1 million users.
It allows people to use financial services in a more-efficient way at more-affordable costs. This helps especially when consumers are in need of cash but does not have any in hand, therefore with mobile payments they do not need to even search for an ATM machine to withdraw money for payment.
Beside that, it can greatly improve standards of living since this system is very convenient as users do not need to carry any cards or even cash but just mobile phone. It also reduced time to be wasted in spending time for queuing up for bill payments.
There is high potential for Mobile Payment System in Malaysia because the market is very large due to the number of mobile phone users is high. The system covers all mobile operators in Malaysia and is available to prepaid and postpaid service billings. Therefore, the mobile phone users’ confidence on mobile payment will greatly increase.
Consumers’ adoption strategies:
1. Educate public about mobile payments, how to use and introduce its functions (e.g. bill payment, mobile purchase)
2. Enchance security and confidence to mobile users Mobile Money allows merchants to take online order without the need for online shoppers to disclose their credit card information.
3. Collaborate with more banks and companies to widen the ability to pay via mobile at the same time it helps to increased customer’s satisfaction and confidence
Currently Mobile Money has teamed up with Hong Leong Bank Bhd. and Bumiputra-Commerce Bank to allow consumers to make payments via their bank accounts linked to their mobile phones. It is targeting 1 million Malaysian mobile phone subscribers with the belief that sending cash via SMS will eventually become part of the daily life of the Malaysian community.
4. Maintain customer’s loyalty Company can reward customers by giving gift at certain level of purchasing or giving extra credit when they used mobile payment. Indirectly, it encourages the use of mobile payment.
References: http://www.cellular-news.com/story/37722.php http://www.gartner.com/it/page.jsp?id=995812
Labels: Task 4
2:59 AM
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