Mobile Payment System in Malaysia: Its potential and consumer's adoption strategies

Mobile payment system (MPS) is a point-of-sale payment made through a mobile device, such as a cellular telephone, a smartphone, or a personal digital assistant (PDA). Using MPS, a person with a wireless device could pay for items in a store or settle a restaurant bill without interacting with any staff member. Mobile Money International Sdn Bhd is an example of mobile payment system in Malaysia. Mobile Money (MM) payment system complies with the regulator's stringent requirements. MM Mobile Payment platform allows everyone to pay anyone, at anytime from anywhere with just one SMS. It also allows one to receive money from anyone, from anywhere, at anytime. MM Mobile Payment system is very secure and it is a closed loop payment system. The charter of Mobile Money is to provide Merchants and consumers with a convenient and secure Mobile Payment and Mobile Commerce platform. Its potential and the consumer’s adopt strategies are as follow: The cost of a payment transaction has an effect on consumer adoption of mobile payment system. As an online shopper is attentive to the price of transaction costs of mobile payments should be low enough to make the total cost of the purchase competitive with physical world prices.

Payment systems security is one of the main barriers to electronic and mobile commerce transactions. The key requirements for secure financial transactions in electronic environment include confidentiality, data integrity. Other security factors important for consumer adoption are anonymity and privacy, which relate to use policies of customers’ personal information and purchase records