Mobile Payment System in Malaysia: Its Potentials and Customers' Adoption Strategies

Mobile payment is a point-of-sale payment made through a mobile device. Mobile payment system characterized themselves by their flexibility of application possibilities (mobile commerce), high convenience (wallet function), and high diversity with account methods, access methods, and so forth.

With 25 million mobile phone subscribers in Malaysia, there are huge opportunities to speed the development of mobile payment as well as to provide an effective method of delivering financial services even in the remote areas. In recent years, various mobile banking and payment initiatives have been launched. This however, has yet to achieve widespread acceptance. To date, there are only 1.8% of the 25 million subscribed for mobile payment service in the country. There is, therefore, a significant untapped and potentially lucrative market for mobile payment and banking services.

Mobile Money (MM Wallet) is a PIN-based Mobile Payment Solution designed by Mobile Money International Sdn Bhd to address the limitations created by cash, cheques and credit cards. It's money in your mobile. You can make payment to anyone, at anytime, from anywhere by using a mobile phone coupled with a 6-digit security PIN via SMS. It is the next generation of money. It's like what mobile phone brings to the world of fixed line phone. It is safe, secure and convenient.

Finally, to encourage consumers to adopt the m-payment, it is hoped that the market participants will be able to offer new mobile payment services that opens up new markets for mobile service providers and payment operators, offer the convenience at reasonable costs and thus deliver the cost savings and efficiency gains that consumers seek. In addition, for mobile payment system to succeed, it is needed to strengthen consumer confidence in the safety, security and reliability of mobile networks as a means for consumers to access financial services.