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

Bank Negara Malaysia sees tremendous promise in mobile telecommunication networks seem more applicable as an electronic payment channel since mobile phones are already in the hands of most Malaysians, with 88% of the Malaysian population subscribing to mobile phone services.

There are immense opportunities to leverage on mobile phones to accelerate the migration to electronic payments, to widen the reach and appeal of electronic payment services, to deliver innovative mobile payment products that offer speed, simplicity and convenience at minimal cost for the public, as well as to provide an efficient and cost-effective method of delivering financial services even in the remote areas.

The high percentage of mobile phone subscriber and the high rate of participation of the population in the banking system are important pre-conditions for the significant use of the mobile phone as an ideal platform for personal payments. With the favorable market conditions, various mobile banking and payment initiatives have been launched in recent years and it is estimated to have a lucrative market for mobile payment and banking services.

In year 2006, Mobile Money International Berhad has developed the MMWallet as a mobile payment system. It can solve the limitation created by cash, cheques and credit cards. The applicants can use the mobile phone to consume goods or service whenever they wish to do so through the MMWallet. It is also a must for user to either have a saving, current or credit card account with participating bank. However it is safer than other online paying as the user is not required to give out their credit card information. Print this post