Mobile payment referred to mobile web payment or WAP billing. It is the collection of money from a consumer via mobile devices such as mobile phone, SmartPhone, Personal Digital Assistant (PDA), etc. It has been widely adopted by a wide range of leading companies, such as World Wrestling Entertainment, PayPal, Google Checkout and etc. However, in Malaysia, there are not much companies adopt mobile payment systems. CIMB, Maxis, and Neowave are the Malaysian companies which currently introduce mobile payment systems to its customers.
Mobile payment systems address the limitations and bottlenecks created by cash, cheques and credit cards. It unlocks the power of the mobile phone to make payments, allowing registered users to pay for goods and services at anytime, anywhere using only a mobile phone coupled with a 6-digit security PIN via SMS. This gives the freedom to shoppers to buy products and pay the merchant using their mobile phone without being physically present at the store. Furthermore, when it comes to online selling, selecting a payment gateway is one of the major obstacles faced by the merchants in Malaysia. There are too few choices available, worse, none of these limited choices are cost effective. This problem has been addressed by mobile payment system, since it allows merchants to take online order without the need for online shopper to disclose their credit card information. As a result, it will encourage more consumers to shop online and this will definitely be a great boon to the e-commerce industry in Malaysia.
Mobile payment systems provide a safe and secure condition for customers as well as merchants. With mobile payment, customers do not have to be concern of cash, cheque or credit card handling problems or fraud. The mobile payment system conforms to the stringent requirements set by Bank Negara Malaysia and the participating banks. In addition, mobile payment offers super fast settlement in T+2 Days. As compared to other payment systems, mobile payment system guarantees that the transactions are settled in 2 working days. Normal credit card or cheque will require at leat 3-4 days for clearance. As for Internet payment gateway, it normally takes between 2 to 4 weeks or more. 
In conclusion, mobile payment systems in Malaysia have offered a great deal of promotions to encourage customers or merchants to adopt the newly introduced payment system. It is inevitable that mobile phone will become a payment tool. Mobile payment enables the mobile phone to function like a credit card and allows users to pay from wherever they may be.
Labels: e-payments, week5
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