Mobile Payment is the collection of money from a consumer via a mobile device such as their mobile phone, SmartPhone, Personal Digital Assistant(PDA) or other such devices.There are two primary models for mobile payments:
Premium SMS based transactional payments and
Mobile web payments (WAP).
There are several mobile payment services in Malaysia such as Mobile Money and mobileExec.
Mobile Money (MM wallet) is a PIN-based Mobile Payment Solution to address the limitations and bottlenecks created by cash, cheques and credit cards. When we need to pay for goods or services, using only a mobile phone coupled with 6-digit security pin via SMS.
MM wallet has been cooperated with several bank such as Hong Leong Bank and Bumiputra-Commerce Bank. In order to pay using Mobile Money, a shopper must have either 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).In other country in Europe or US, mobile payment is a popular system that people use for various activities available. In Malaysia, it just be launched in recent years. However, there has a big potential in this country. There are about 88% of the Malaysian population subscribing to mobile phone services. With a population of 27 million, the banking system in Malaysia has 55 million deposit accounts indicating that a high percentage of the population have deposit accounts with the banking system. The high percentage of mobile phone subscriber and the high rate of participation of the population in the banking system are important pre-conditions for the significant use of the mobile phone as an ideal platform for personal payments.
It is hoped that market participants will be able to offer new and innovative mobile payment products and 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 and businesses seek, and thus allow for the economic benefits to be realised. For mobile payment products to succeed and achieve widespread acceptance, we need to strengthen consumer confidence in the safety, security and reliability of mobile networks as a means for consumers to access financial services. So, the market participants need to promote more and let the consumers know about the benefits and others issue such as security and reliability issue and encourage them to adopt this payment system.
More about Mobile payment: http://www.mobilepayment.com/
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