Showing posts with label Week 5. Show all posts
Showing posts with label Week 5. Show all posts

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

Saturday, February 14, 2009

 Malaysia being a country with over 25 million in population and 21 million mobile subscribers as at the end of year 2007, there is definitely market opportunity for mobile payment systems.Some of examples of mobile payments available in Malaysia are mobileExec and Mobile Money.


Mobile Money is a PIN-based Mobile Payment Solution designed by Mobile Money International Sdn Bhd to address the limitations and bottlenecks created by cash, cheques and credit cards.
It unlock 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 (Personal Identification Number) via SMS (Short Messaging Service).
This gives the freedom to shoppers to buy products online and pay the merchant using his/her mobile phone without being physically present at the store.

Mobile payment systems can be used for purchasing musics, ringtones, wallpaper and games (there are many of these type of service or product offered in Malaysia’s newspaper). Most Malaysian buy these ringtones and games via mobile payment, either via GPRS/WAP or SMS (premium SMS based transactional payments).

There are few types of mobile transaction can be made:
  • Premium SMS transaction
  • WAP (mobile web)
  • Mobile payment providers


Premium SMS transactions are the most common in Malaysia, most mobile users download thier wallpaper, music, ringtones and mobile games by buying them through SMS payment. SMS payment requires you to send a certain code to certain number to confirm you want to buy those products.


WAP payment is similar to SMS, you are required to select product you want from the web and a confirmation message will be displayed to you with the details of product before u can confirm it.


Mobile payment provider is different they uses SMS and Web, it helps to extend the ability of mobile payment. There are few mobile payment providers in Malaysia, such as Mobile Money (http://mobile-money.com.my/index.html) who provides variety of products and services. By registering an account with mobile payment provider, you can top up your credit to them and use it to purchase products or services offered by them.

Potentials:

Celcom set up a whole mobile Banking and Wireless electronc payment solution. It will allow customers to access financial and account information at any bank and at a minimal investment by participating banks via mobile phone.

Besides that, Nokia and Visa start mobile payment project in Malaysia. Visa and Nokia have cooperated to release the world’s first credit card payment system that allows consumers to shop and pay using mobile phones.

Furthermore, it also lets people transfer money through cell phones. Nokia phones will use Visa Wave smart card technology that uses radio frequencies to eliminate the need to swipe credit card.

Mobile payments services indeed have a great potential and advantage. Consumers are more comfortable with low-value transactions over such non-traditional means. Common applications will include payment for transportation, parking, restaurants, convenience stores, retail outlets and e-tickets.

Moreover, Mobile Money will encourage more consumers to shop online. This will definitely be a great boon to the e-commerce industry in Malaysia. It will surely encourage more merchants to adopt online selling as an extra sales channel which complement perfectly with their offline sales channel to help them SELL MORE of their goods and services.

Strategies to adopt:
  • Educate consumers about mobile payments, how to use and introduce its functions (e.g. bill payment, mobile purchase)
  • Enchance security and confidence to mobile users
  • Collaborate with more banks and companies to widen the ability to pay via mobile at the same time it helps to increased customer’s satisfaction and confidence
  • Maintain customer’s loyalty

http://www.neowave.com.my/mobilemoney_overview.asp

http://e-world08.blogspot.com/2008/06/mobile-payment-systems-in-malaysia-its.html

The application of pre-paid cash card for consumers

Saturday, February 7, 2009
What is a prepaid credit card ?

A prepaid credit card can be used like any other credit card to make purchases. With a prepaid card, you can load funds onto your card and use that money to make purchases and get cash -- you are not borrowing money from a bank or other financial institution. The prepaid credit cards look, feel and work like a credit card but are pre-funded "stored-value" cards. This allows you to set spending limits for you or your kids.

Who needs a prepaid credit card?

1. Budget: conscious people-People who want to limit their spending limit.

2.Parents: Parents who want to teach teens how to create a budget, manage money, and shop wisely.

3.Students: Teenagers who don't have budgeting skills yet.

4.People with bad or no credit history: People with damaged or no credit history.

5.People looking for an excellent gift idea: Gift receipients enjoy freedom of their choice.
The prepaid credit cards can be used for:
1. Purchases
2. Money management for young adults
3. Travel including reserving a hotel and rental car
4. Emergency needs
5. Cash access at ATMs
6. Employee wages & expenses
7. Electronic payments
8. Gift-giving

How does a prepaid credit card work?

It is a pre-paid, reloadable card can be used anywhere Visa or MasterCard is accepted -- at stores, gas stations, restaurants, theaters, in the mall and online. Making a hotel and rental car reservation is a snap. You can also access cash at ATM's. The card is great for everyday purchases, special occasions, and emergency back up.

Unlike a credit card, though, each purchase is deducted from the pre-paid balance on the card. Best of all, because it's not a credit card, there are no finance charges, no late fees, and no accumulation of debt. Beside that, it also accepted anywhere a Visa or MasterCard is accepted, can be used to withdraw cash from an ATM and relodable.

Why do you want to use a prepaid credit card?

a) Safer than cash
When cash is lost, it is gone forever. However, if your prepaid credit card is ever lost or stolen, you're protected by Visa or MasterCard's no liability policy.
b) Budgeting
You set the spending limits by the prepaid amount loaded on the card. Prepaid credit cards make it easy to get your spending under control and shop wisely.
c) Teaching tool
Parents can sign up for their teens: they set spending limits by loading the card with a certain amount of money and monitor where their children are spending it. Prepaid card meets the spending needs of teens and helps develop responsible financial behavior. With online tracking of purchases, parents and teens can discuss spending and budgeting.

How is the prepaid credit card different from regular credit cards?

The prepaid credit card looks like a credit card - it has the Visa or MasterCard logo and hologram -and allows the convenience of cashless purchases like a signature-based credit card, with no PIN input required at the point-of-sale. However, it does not have a "line of credit" because it accesses pre-loaded money. You load funds onto your Card and use that money to make purchases and get cash - you are not borrowing money from a bank or other financial institution.

Two Types of Prepaid Cards: Open and Closed -System Prepaid Cards

The popularity of prepaid credit cards is rising. Visa and MasterCard are issuing prepaid, or pre-denominated, stored-value cards, as they're called, that can be used anywhere Visa or MasterCard are accepted. There are two types of prepaid cards: Closed-system and open-system prepaid cards.
Closed-system prepaid cards are those issued by and redeemable at a single merchant (or merchant chain). Closed-system retailer gift card programs focus on a single application: providing a prepaid card product to consumers solely for making purchases at a single merchant or, in some cases, a group of retail merchants.

The open-system network is differentiated from the closed-system network by the fact that open-system prepaid cards are branded by a payment card network. Network branding makes it possible for open-system prepaid cards to be processed using the same “tracks” as traditional debit and credit cards. As a result, these branded prepaid cards are accepted at any merchant that accepts the network brand on the card. For example, a Visa-branded prepaid card can be redeemed by its holder at any merchant that accepts Visa-branded debit cards.Open-system gift cards are issued by a third party, such as a bank or money transmitter, and carry the brand of a card association or other payment network. They can be used at any merchant that accepts the brand on the card.


A review on a post on e-tailing from My E-Commerce blog

Wednesday, February 4, 2009

According to the blog which post the title of Open Table.com online restaurant reservation on the My E-commerce. (http://ecommerze.blogspot.com/search/label/e-Tailing)


OpenTable.com is an innovative e-commerce business model services which started in 1999. This business model provides a convenience service for nowadays people especially for those who live in New York and San Francisco. OpenTable.com offered for register as a restaurant member of OpenTable.com in order to manage reservation and improve customer services themselves.


Form the blog, OpenTable.com become popular due to some reasons such as the customers can conduct the reservation outside the business hours. It also provides one-click cancellation for the reservation. Besides, OpenTable.com can let customer to leave some message to the restaurants in his or her reservation. For diners, they can efficient way to find available tables that meet desired criteria for cuisine, price and location at a specified time from the websites which provides in the seconds.




OpenTable.com has taken more than 40 million reservations. This attracts many notable restaurants to become as a member of the OpenTable.com such as Daniel in New York. In my view, these restaurants would like to increase their reputation and the customer services.


Would like to book a table for the particular restaurant? Just explore to www.opentable.com which can help you....However Malaysia not yet have this good sound e-commerce business model. Hope someone can implement it soon!!




The application of pre-paid cash card for consumers

Tuesday, February 3, 2009












Prepaid payment cards are a recent phenomenon. They have exploded in popularity across America over the last 10 years and are now taking off in Malaysia.




The pre-paid cash card is far from a new idea. How many of us have used a prepaid gift card or a prepaid mobile phone SIM card? The concept is basically the same. A prepaid card looks like a credit or debit card, and gives users the ability to purchase products and services with a card but with a crucial difference - you can only spend the balance that has been preloaded onto the card. This means there is no risk of running into debt as it has no credit or overdraft facility. The pre-paid cash card is also known as stored-value card.









Money can be loaded on to a prepaid card by cash at a bank, Post Office, at Payzone or PayPoint terminals, bank transfer, through your employer or even by another credit card. When using for purchasing at a high street store, they work in exactly the same way as a credit or debit card - you simply hand the card to the cashier. You will be asked to enter your PIN number (supplied with the card) on an electronic keypad or to sign a payment slip so your signature can be matched with that on the back of the card (if there is no Chip on the card). The total amount will be taken from your card immediately and the transaction is complete.






To shop online, you'll find the item you want to buy and click on to the website's "checkout" page before filling in your details and those of your prepaid card. As long as you have enough cash loaded on your card (the website checks this by the usual means of an authorisation), the purchase is completed and your item will be shipped to you.








The benefits of using pre-paid cash card,
1.Buying groceries and petrol
2.As a replacement for travellers cheques or travel cash for a low cost alternative to paying for goods and services abroad
3.Topping up your mobile phone
4.Internet shopping including eBay
5.Paying bills
6.Transferring money to friends and family either in the UK or overseas (known as remittance)
7.Withdrawing cash from an ATM




The examples of the pre-paid cash card which are offered by several fiancial instituitions as below:























In conclusion, there are many types of prer-paid cash card being offerd. To be a wise consumer, we should consider and compare all the features and the different rates of all the offers avaiable before making any decision.













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