E-Commerce World

What is mobile payment system?

Mobile payment is the solution to the limitations and bottlenecks created by cash, cheques and credit cards. It unlocks the power of the mobile phone to make payments, allowing registered users to pay for goods and services at anytime, anywhere by using only a mobile phone coupled with a 6-digit security PIN (Personal Identification Number) via SMS (Short Messaging Service). This gives the freedom to shoppers to buy products online and pay the merchant using his/her mobile phone without being physically present at the store.

Potential and future development

Mobile payment system will encourage more consumers to shop online. This will definitely be a great boon to the e-commerce industry in Malaysia. Besides that, it will surely encourage more merchants to adopt online selling as an extra sales channel which complement perfectly with their offline sales channel in order to help them gain more sales and profit.

Consumer’s adoption strategies

In order to pay using Mobile Money, a shopper must have a savings, current or credit card account with participating banks. It functions like a Credit Card if a shopper applies for a "Pay by Mobile Phone" credit card account (eg Hong Leong Mobile Credit Card). The shopper will be billed by the bank accordingly by month's end. In addition, it functions as a Debit Card if it is tied to shopper's savings or current account. The amount will be deducted instantly from the account upon successful transaction.