Mobile Payment System in Malaysia

Mobile payment appeared to be a new alternative payment method in nowaday econmy. This rapidly-adopting method is used widely in Asia and Europe. Instead paying anything with cash, cheque and credit cards, a consumer can use mobile phone to pay for wide range of service and digital or hard goods. The followings indicate the major methods for mobile payment:

1. Premium SMS based transactional payments - in this model, payment is made by consumers via SMS text message to a short code and a premium charge is applied to their phone bill.


2. Direct Moble Biling - a true alternative payment mehtod that does not require the use of credit/debit cards or pre-registration at online payment such as PayPal.


3. Mobile Web Payment (WAP) - where consumer uses web pages displayed or additional downloaded application and installed into her mobile phone to make payment. It uses WAP (Wireless Application Protocol) as underlying technology.

Mobile Money (MM) is a PIN-based Mobile Payment Solution designed by Mobile Money International Sdn Bhd where in adopted by Malaysia since Fubruary 2005. In order to pay using MM, shopper must either a savings, current or credit card account with participating banks (Hong Leong Mobile Credit Card). The shopper will be billed by the bank by envery month end.

The advantages of using mobile payment:

1. Conviniency of payment through just a click on the phone. Physical presence to the place is not necessary.


2. Easy to complement to cash, easily reacheable especially during emergencies.

Beside MM payment system, another company in Malaysia also apply the mobile payment as well that is Maxis. Maxis launched a system call Maxis FastTap which is an integrated mobile payment service that utilises near-field communication (NFC) technology.

For more information about mobile payment: http://www.neowave.com.my/mobilemoney_overview.asp