Mobile payment systems in Malaysia: It’s potentials and consumers’ adoption strategies

Mobile payment also referred to as mobile web payment or WAP billing is the collection of money from a consumer via a mobile device such as their mobile phone, Smart Phone, Personal Digital Assistant (PDA) or other such device.

Mobile payment can be used to purchase any number of digital or hard goods, such as music, videos, ringtones, games, wallpapers and other digital goods. Besides that, it is also can be used to purchase books, magazines, tickets and other hard goods.

Nowadays, there are some companies start promote mobile systems in Malaysia, such as Visa and Nokia. Visa and Nokia have teamed up to release the world's first credit card payment system in Malaysia, they allow consumers to shop and pay by using their mobile phones. PayPal has launched a somewhat similar service called PayPal Mobile that lets people transfer money through their cell phones.

Nokia phones will use the Visa Wave smart card technology that utilizes the radio frequencies to eliminate the need to swipe credit card into a reader. During the trial period, Visa Wave cardholders in Malaysia will be given a special Nokia phone that can be used for such payments.

Pilot implementations of mobile payments have shown that consumers find mobile payments both functional and convenient. However, while consumers are receptive to innovative mobile payment devices and services, they are also still looking for a strong value proposition. Consumers are aware that they have alternatives and are educated about other options. Finally, consumers are showing a heightened awareness of security and privacy issues. Mobile payment scenarios can enhance security and privacy. However, if the perception exists that mobile payment potentially involves loss of privacy, consumers will not accept it.