Mobile Payment Potentials
There are 25 million mobile phone subscribers in Malaysia with 88% of the Malaysian population subscribing to mobile phone services.
With this high penetration rate, there is no doubt that Malaysia is provided with immense opportunities to deliver mobile payment products that offer fast, simple, convenient, cost-effective, or even efficient method of delivering financial service in the remote areas.
Besides, having 55 million deposit accounts in the Malaysian banking system also reflects that a high percentage of Malaysian population have participated in the banking system of Malaysia.
With the high rates of mobile subscribers and participation in banking system, the potentials of the mobile payment system is clearly shown.
Consumers’ adoption strategies
1. Interoperability and collaboration between industry players, such as mobile operators and
banks play a crucial role in realizing the potentials of mobile payment.- By developing a common infrastructure and standard, an easily accessible, open and lively payment ecosystem will be created and this will certainly attract more consumers to join.
- Maxis Communications launched the world’s first contactless mobile payment service, Maxis FastTap, which is an integrated mobile payment service that uses NFC, together with the partners Nokia, Visa, Maybank and Touch ‘n Go on 9 April 2009.
2. Releasing the economic benefits, such as cost-effectiveness and efficiency gains that customers and businesses seek, by offering new and innovative mobile payment products will also encourage the consumers to adopt the mobile payment system.
Sybase 365, a subsidiary of Sybase, Inc (NYSE:SY), has been selected by Celcom to power AirCash, an Unstructured Supplementary Service Data (USSD) based mobile financial service to Malaysian customers.
- It enables the customers to transfer money locally and internationally, airtime topup, mobile payments for utility bills, mobile commerce and others.
3. Building security and authentication standards in the mobile payment system will eliminate the worries of consumers when adopting this system.
Mobile Money, a PIN-based Mobile Payment Solution desiged by Mobile Money International Sdn Bhd, allows the registered users the pay the merchants using mobile phones coupled with a 6-digit security PIN via SMS without needing to physically present at the store.
- It removes the need to disclose individual’s credit card information when taking online orders.
- Mobile digital signature also provides confidentiality, authenticity and integrity using mobile payment for the delivery of financial services.
References:
1. Governor’s Keynote Address at the Mobile Digital Signature Symposium 2008 –“Towards a More Efficient Payment System: Electronic Payments"
2. “World’s first contactless mobile payment system” launches in Malaysia
3. Mobile Money (MM Wallet) Overview
4. Sybase 365 Launches First USSD Mobile Financial Solution in Asia Pacific Region
Posts
Mobile payment system is definitely an interesting breakthrough.
ReplyDeleteBut prior to the actual full-and-wide establishment of the system on market, several matters should be taken care of at first.
First of all, mobile phone users' information should be well-organised such that the system can work efficiently and flawlessly.
This would require the full cooperation given by the mobile network suppliers.
Therefore, new regulations and rules should be laid out to keep things in order.
Moreover, the credit in users' mobile network accounts should be re-defined.
Nowadays, these credits are non-redeemable and non-transferrable into real currency.
This will not give the appropriate values to the credits, hence not practical to use it as a transaction method.
Therefore, the credits should be given the values to trade, such as a transferrable credit to Paypal points, etc.
If the credit is transferrable, then it will be an easy and convenient way to make payment.
Currently there are several paying systems that utilize mobile phone.
The full establishment and adoption will be around the corner.
Someday, the mobile payment system may even take over the place of credit card payment system.
Let us hope that the mobile payment system can be fully established in Malaysia and on the international market.
-eugene-