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

Nowadays, there is high potential for mobile telecommunication networks to become an important electronic payment channel in our country as mobile phone services will make life easier for everyone. Mobile payment system is a system using mobile devices to make monetary transactions such as pay bills, perform banking transactions or shop online beyond voices.

In Malaysia there are several companies that already launched mobile payment systems such as Celcom, Maxis, Digi, TMtouch, Maybank, Hong Leong Bank, Mobile Money International Sdn Bhd, and mobileExec Sdn Bhd.

Celcom (Malaysia) Berhad, Malaysia's premier mobile network with the widest coverage, and paybox, the trendsetting company for mobile payment solutions, will be launching a mobile Banking & mobile Payment solution for the Malaysian market. Mobile Banking (m-banking) and mobile Payment (m-payment) in Malaysia provide real-time banking and payment instructions that enable customers access to their current e-banking systems using a Java client on their phone. It allows customers to access their accounts at any bank, at a minimal investment by the participating banks. Besides, Celcom will expand the system to include other partners and provide extended remittance, bill payment and merchant payment services.

As for consumers shop and pay via mobile phones, Visa International collaborated with Nokia Corporation had introduce the world's first credit card payment pilot system in Malaysia recently, called "Mobile Visa Wave Payment Pilot". The backbone of the mobile payment system is Visa Wave smart card technology. The technology is equipped with sophisticated radio frequencies that eliminate the need to swipe credit cards into a reader. The service will be available on the Nokia 3230 prototype phone. Users will be able to use the phones to make payments in 2,500 outlets equipped with Visa Wave readers. Nokia's business development senior manager Risto Sipila expects such services to become more popular as, mobile phone users worldwide are likely to go up to 3 billion by 2008. It is because visa is using a specialized chip with the latest cryptography, security and smart card technologies which making the system extremely secure and forging difficult.

MobileExec currently provides premium rate SMS messaging across the all major Malaysian carriers. In the Malaysia, premium rate SMS and reverse billing services are regulated by Malaysian Communications and Multimedia Commission (MCMC). Such services are developing fast in the Europe and recently in Malaysia. It provides customers with admission or money off vouchers which can be unique coded or designed to allow viral spread. The mobile payment gateway service covers all mobile operators on Malaysia, with support for prepaid and postpaid service billings. Those packages include the following:

1. Project Planning and Management Services


2. Product Catalogue Submission (to all mobile operators)


3. Premium Billing System Configuration


4. Systems and Load Testing


5. User Acceptance Testing (UAT) will all mobile networks


6. Service Launch


7. Monthly Service Monitoring and Progress Report


8. Settlement Reports, collections from mobile operators

In short, the mobile payment system is easier, more cost-effective and more convenient for consumers, merchants and service-providers to execute and receive payments. Furthermore, mobile payment is safe and secure. It allows people to make payment at anytime from anywhere with just one SMS. It also allows people to receive money from anyone at anytime. As for merchants, business can be done anywhere such as conduct billing. There will be increased business opportunities for merchants as remote mobile payment can be done easily with the lower transaction and maintenance cost.

Electronic currency

In our study electronic currency is the digital equivalent of paper currency and coins, which enables secure and anonymous purchase of low-priced item which is maybe the item, is selling below RM10. Electronic currency also called electronic money it also known as electronic cash, digital money, digital cash or digital currency.

Electronic currency refers to money or scrip which is exchange only electronically which mean do a transaction through online and pay the payment through online. Typically, this involves use of computer networks, the internet and digital stored value systems. Electronic Funds Transfer (EFT) and direct deposit are the examples of electronic currency. Also, it is a collective term for financial cryptography and technologies enabling it.

Nowadays electronic currency is widely used throughout the world. Today nearly all the bank and institution are handled electronically though a series of computer network.

Many systems will sell their electronic currency directly to end user, such as Paypal, WebMoney, BitPass, Firstgate’s Click and Buy, PayLoadz, Paystone, Peppercoin, Beenz, Digicash, and also Flooz. Thus, Paypal is my target to discuss.

Paypal is an e-commerce business allowing payments and money transfer to be made through the internet. PayPal serves as an electronic alternative to traditional paper methods such as checks and money orders.

A PayPal account can be funded with an electronic debit from a bank account or by a credit card. Paypal is an example of a payment intermediary service that facilitates worldwide e-commerce.

Currently, PayPal operates in 190 markets, and it manages over 184 million accounts. PayPal allows customers to send, receive, and hold funds in 19 currencies worldwide such as Australian dollar, Chinese renminbi, Hong kong dollar, Mexican peso, Singapore dollar and etc.

Credit Card debts: Causes and Prevention

CONFESSIONS OF A SHOPAHOLIC, due in theaters on February 13, 2009!

Rebecca Bloomwood is a sweet and charming New York City girl who has a tiny, little problem that is rapidly turning into a big problem: shes hopelessly addicted to shopping and drowning in a sea of debt. While Rebecca has dreams of working for a top fashion magazine, she can't quite get her foot in the door that is, until she snags a job as an advice columnist for a new financial magazine published by the same company. Overnight, her column becomes hugely popular, turning her into an overnight celebrity, But when her compulsive shopping and growing debt issues threaten to destroy her love life and derail her career, she struggles to keep it all from spiraling out of controland is ultimately forced to reevaluate whats really important in life. END!

Just click the following link if you wish to see the trailer

http://www.youtube.com/watch?v=ZYYCSEV-i1Y&feature=fvst

Alright, no more discussion about Confessions of Shopaholic, please!!! I mean no more cos we are heading back to week 5 task. Oh ya~! Week 5 task. What is it, ya?! Oh..It's Credit Card debts: Causes and Prevention. Ever wonder why I suddenly link "that movie" with one of this week task? It's so simple. If you already watched "that movie" then you will know what exactly happen to Rebecca Bloomwood. She drowning in the sea of debt from her credit cards and struggle to save herself from suffocated. Haha..! I do believe that now you realize the relationship of "that movie" and my task.

Allows me to start my task. I believe that everyone is familiar with credit card (Magic card is the term used in "that movie"). It allows consumers to repeatedly borrow money or purchase products and services on credit. Normally, it is issued by banks, savings and loans, retail stores and other businesses. Credit cards or magic card suppose to make our life easier, but it gives rise to negative consequences in our society.

Today, credit card debt has become the main contributor to personal debt and cause for many financial problems. The following are some of the common causes of credit card debts.

1. Maintaining expenses on a reduced income ~ Excessive spending is one of the common causes of credit card debt. This is especially true if you continue to make charges after experiencing a reduction in your monthly income.


2. Poor money management ~ Spending without planning is likely to result in excessive expenses and inability to pay the monthly credit card bills. Higher interest rates will be charged on late payment and further increase your debts.


3. Not savings or saving too little ~ Those who are contributing very little or no funds to savings, are likely reach for their credit cards to cover any unexpected or emergency expenses.


4. Overspending ~ People often spend too much on things that they may not really need. As we live in a consumer culture, with glittery advertisements beckoning us to buy, around every corner, sometimes, we may use credit cards beyond our means.


5. Banking on windfall ~ Spending tomorrow’s money today is very tempting. Relying on credit cards to meet your monthly purchases will lead you down into credit card debt at the end.

Ladies and gentlemen, don't worry! Be happy~! There is always someway you can do to save yourself, right? Here are some useful tips to prevent credit card debts.

1. Manage Your Finance ~ Plan for your money by listing out all income and expenses on a monthly basis. It is important to know exactly where all of your funds are going. With a great management plan, you won't need to pull out your credit card from your wallet.


2. Choose Credit Card Wisely ~ Be cautious when choosing credit card. Try to find the credit card offers the lowest interest rate by reviewing and comparing various offers in the market.


3. Control Spending ~ Be extremely careful with your spending once you get the credit card. Consider whether you can afford the amount credited at the end of the month each time you use credit card. Set a credit limit as low as possible but sufficient to meet your daily needs.


4. Always Pay on Time ~ Paying on time is one of the best solution to shun away from debt. This can restrict debt from being grow into a huge amount that contributes to financial problem.


5. View Credit Card the Same as with Cash ~ Keep an equal perspective regarding credit card and cash. This helps you to be more aware and keen on spending too much.

Be a wise consumer and use your credit cards cautiously and don’t let credit cards control you. Do remember this: "You're the magician. So, magic card depend on you to show the magic to the people around you. Don't let magic card control you!"

References:

http://www.cardratings.com/howtoavoidcreditcarddebt.html

http://www.3debtconsolidation.com/creditcardmistakes.html

http://www.stop-credit-card-debt.com/2008/07/24/tips-on-credit-card-debt-prevention/

http://learnfobia.com/category-Business-62/tutorial-Manage-and-Eliminate-your-Credit-Card-Debt-1989.html

***HAPPY 19TH BIRTHDAY TO YOU, JIN!***

The application of pre-paid cash card for consumers

Pre-paid cash card is an electronic card which has monetary value loaded into it and it is reloadable. This electronic cards had maked our life become more convenient and its not like credit card we do not need pay extra charges for it. It is easy to be use, just tap the pre-paid cash card on the entry card reader then can straight go.

First example: Octopus card in Hong Kong

Hong Kong government had launched this pre-paid cash card called Octopus card in September 1997 to collect fares for the public transport and also use for payment of purchasing goods for small amount of money at retail shop, supermarkets, fast-food restaurants, car parks, and parking meters in Hong Kong. The octopus card system was the first contactless smart card system in the world since grown into a widely used payment system. Octopus card are very familiar to the Hong Kong peoples, the cards are used by 95 percent of the population of Hong Kong.


Second example: Touch 'n Go card in Malaysia

Besides Hong Kong, Malaysia also had launched pre-paid cash card called Touch 'n Go card. Touch 'n Go was develop by Teras Teknologi Sdn Bhd and owned by Rangkaian Segar Sdn Bhd as is now known as Touch 'n Go Sdn Bhd. Touch 'n Go card can be used at all highways in Malaysia when we pass through the toll we can pay for it by Touch 'n Go card. Besides that when we using public transport we can pay the public transport fare by using this card such as KTM, LRT, and Rapid KL bus. We can even pay our parking fees using this card in some shopping center located in KL. This card can make our life easy like we no need queue so long when buy public transport ticket.
Users can reload the card at toll station, particular train station, Atm machine and even now petrol station also provides this reload service to the public. So it is very easy when the money inside the card has finish