Mobile payment system in Malaysia: It's potentials & consumer's adoption strategies

Mobile payment in Malaysia is new but fast-growing alternative payment method. Mobile payment is the collection of money from a consumer via a mobile device such as their mobile phone, SmartPhone and Personal Digital Assistant (PDA) or other such device. A mobile
phone can pay for a wide range of services and digital or hard goods such as songs, computer games, books and magazines.

The most popular mobile payment system is Mobile Money, a PIN-based Mobile Payment Solution which allowing a registered users to pay for their 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 Services). The main advantages here is the consumer has the purchasing power whether to buy their desired goods and services whenever they like using their mobile phone without physically present at the store.


The potentials of Mobile payment system are:

1. Consumers prefer a low-value transaction. However, it will continue to grow as consumer’s needs & confidence on mobile payment increased.
2. An increasing companies in Malaysia are using m-payment system in order to be more profitable.
3. Mobile payment providers have a large market share to grab on while the competition are relatively low in the newly developing stage in the market.
4. High acceptability and adaptability among consumers as the number of mobile users are increasing from year to year.

The adoption strategies will be :

1. Collaborate with banks and companies in order to expand the ability to purchase goods and sevices via mobile which helps to enhance consumer's confidence and satisfaction.
2. Enhancing the security during the purchasing transaction on goods and services.
3. Maintain the customer's loyalty by providing the best satisfaction in terms of security, services, and ease of use of the system.
4. Gifts and rewards offered from the company to m-payment consumers when they reach a certain level of purchasing of goods and services in order to build consumer's confident.