Mobile payment systems in Malaysia: Its potentials and consumers' adoption strategies.

Recently, there shown an increasing number of users who start using the mobile payment system in Malaysia. The well-known mobile payment system in Malaysia is Mobile Money (MM wallet), which provides the services via mobile phone. The MM wallet is use by the young person and even the old person. The users can registered at MM wallet in order to make payment via sms by using only a mobile phone coupled with a 6-digit security PIN. The users can make the payment like loan, telephone bills and others at anytime via mobile phone.

This system bring a lot of benefits to the users, the users can avoid crowded in the queue for the long time. The users can also in the convenient because they do not need to bring their credit card or cash along if their want to go ahead for some of the transaction. The users can secure their mmwallet account by create the strong password protection patent.

The most common usage of the mobile payment in Malaysia is use to pay the summons. However, the others may use the mobile payment system to pay their debts such as monthly credit card bills, electric bills, phone bills and others. The easy steps in register the account is the main reason for them using the MM wallet. The users just need to register their phone number and create their password for start using the MM wallet. http://www.mobile-money.com/

In the future, there will be more merchants adopt the mobile money system in order to convenient the consumers since the technology become more and more advances nowadays.

http://www.mmwallet.com/userfaq.htm

http://www.mmwallet.com/download/pocketGuide_eng.pdf

Electronic Currency

Electronic currency is also known as e-money, electronic cash, electronic money, digital money, digital cash or digital currency. It is refers to money or scrip which is exchanged only electronically. Typically, this involves use of computer networks, the internet and digital stored value system. Bit Pass, Payloadz, Digicash, Peppercoin are some examples of electronic currency. While electronic money has been an interesting problem for cryptography to date, use of digital cash has been relatively low-scale.

Peppercoin, Inc. was a privately held company founded in late 2001 by Silvio Micali and Ron Rivest, it was a company that offers services based on the peppercoin method. Peppercoin is a crytographic system for processing micropayments which is especially important to companies with low-priced digital content or physical goods. The core idea of Peppercoin system is to bill one randomly selected transaction a lump sum of money rather than bill each transaction a small amount. It uses "universal aggregation", typically means that it aggregates transactions over users, merchants as well as payment service providers. The random selection is cryptographically secure, means it cannot be influenced by any of the parties. It is claimed to reduce the transaction cost per dollar from 27 cents to "well below 10 cents."

Peppercoin, Inc. was bought out in 2007 by Chockstone, a provider of stored value loyalty services to merchants, for an undisclosed amount. The company's PCI-compliant services are now used by restaurant brands to tie customer loyalty programs to credit and debit cards at the point of sale. Peppercoin provides merchants with secure access to their customers' payments data so they can increase the effectiveness of loyalty schemes. Merchants using the system are also provided with real-time reporting and customer analytics tools to develop offers based on business needs and consumer response.

References:

http://en.wikipedia.org/wiki/Electronic_money

http://en.wikipedia.org/wiki/Peppercoin

The Application of Pre-Paid Cash Card for Consumers

A pre-paid cash card commonly referred to as a stored-value card, is typically a credit card- sized piece of plastic that contains or represents an amount of pre-loaded value.Basically, it's a card you can load money on and use anywhere including online.

For example, the Touch-n-Go smart card which is used by Malaysian toll expressway and highway operators as the sole electronic payment system(EPS).The Touch-n-Go systems are designed to process up to 800 vehicles per hour to ease the queue congestion at the toll plaza.It is the same technology used as electronic payment of transport for London which is known as Oyster card.Before long,Tounch-n-Go can use in anywhere such as 7-Eleven, KFC,Mc Donald,etc.The another example for the application of Pre-paid cash card for the consumers including gift cards,prepaid telephone cards, payroll cards, government benefit cards, mall cards, etc.

There are numerous benefits to the pre-paid cash card. These include:

Availability - There are no credit checks, which means you can get a card without worrying about your credit history.

Control - Prepaid cash cards are an ideal way to budget for yourself.Like a credit card you get a full breakdown of spending on the card so you can see what has been purchased, who from and when.

No debt risk - With a prepaid card there is no chance of spending too much as you are limited to the amount you put on your card.

The card for travel - As well as being able to top up the card, depending on the

specific provider, you will be able to use it at ATMs worldwide. Many providers now offer dollar and euro cards and offer a better exchange rate on their travel cards.

Security- If you are still uncomfortable giving the numbers of the card on the internet, the prepaid cash card is the answer. Since the card can be charged only up to the value of the pre-loaded fund, the thieves can not make an excessive charge using your card.