Mobile payment system in Malaysia

Nowadays, mobile phone function not merely can contact people, now you can make a payment through the mobile phone. Recent technology development has also driven the use of mobile commerce technology. Mobile commerce is another form of payment but it has ability to embrace new ideas concerning digital money as mobile device have grown to become an essential personal needs.

What is mobile payment system? Mobile payment system is a system that allows the shopper uses a mobile device to conduct a payment transaction coupled with a 6 digit security PIN via SMS. This PIN based mobile payment solution designed by Mobile Money International Sdn Bhd to address the limitations and bottlenecks created by cash, cheques, and credits cards. It unlocks the power of the mobile phone to make payments, allowing registered user to pay for goods and services at anytime and anywhere.

In Malaysia, with 25 million mobile phone subscribers, therefore there are immense opportunities to leverage on mobile phones to accelerate the migration to electronic payment. The higher the number of mobile phone subscribers, the higher rate of participation of the population in the banking system. With this favorable market condition, there are many mobile banking have been launched in recent years. However, by up to date information, there are only 1.8% mobile phone subscribers in Malaysia registered to the mobile baking and payment service. Therefore, there is a potentially lucrative market for mobile banking and payment services.

In summary, mobile payment system has bring benefits to the users, such as provided shopper with ubiquitous purchase possibilities, timely access to financial assets and an alternative to cash payment. Mobile payments are commonly increase consumer convenience by reducing the need for cash in small transactions and increasing the availability of purchase possibilities.