Mobile payment systems in Malaysia: Its potentials and consumers' adoption strategies

In Malaysia, mobile payment system is still considered a new system, however this system it is already very common in Japan. Mobile payment system in Malaysia is called Mobile Money and it was launched by Malaysia’s richest man, Mr Koay(Sugar King).The query is what is Mobile Money ?

Mobile Money system is:

1) A system allows users to pay bills by using hand phone via SMS (short message service) such as telephone bill, electricity bill, income tax.

2) Besides that, it is also a system functioning similar to credit card as we could make direct payment via hand phone when we purchase goods during shopping.

3) Additionally, it allows transferring of funds between users’ bank accounts via hand phone provided both sides have registered the system. For example, we could transfer money from our account to friend’s account when they need money urgently and withdraw it immediately at any nearby ATM machines.

4) This system is also very user-friendly as you can pay your bills anywhere anytime as its operating 24 hours by using hand phone.

Above definition is giving you briefly an idea about Mobile payment system in Malaysia (Mobile Money)

Now I would like to share my ideas about the implementation strategies of the mobile payment system in Malaysia.

The system implementation strategies:

1) This system communicates your bank account, Mobile Money bank account and your hand phone.

2) Next, funds need to be transferred to the Mobile Money company bank account from our bank account and the company will convert it into mobile money form and SMS to your hand phone. For example, you bank in RM 100 to Mobile Money Company then the company will send u a SMS.

3) In the SMS, the amount of money is displayed and you can use the money to pay any bill by sending SMS to certain number or operator. You can also buy reload card for Maxis, Digi and Celcom by using particular phone number