MOBILE PAYMENT SYSTEMS in MALAYSIA: Its POTENTIALS and CONSUMERS' ADOPTION STRATEGIES
Mobile payment system(also known as mobile web payments or WAP billing) allow individual to make the payment through their mobile phone, smart phone, Personal Digital Assistant(PDA) or other such device. It can use to purchases either digital or physical goods. Digital product refers to the intangible products that can be transfer over a digital network such as songs, games and wallpaper for mobile phone.
Mobile payment is developing fast in Malaysia such as MobileExec and Mobile Money. Both of the system allows customer to pay for their goods or services through a mobile device without having cash on hand. Besides that, the other companies in Malaysia also come out with various services by applying the same concept such as Maxis, Celcom and so on.
Thus, have a great potential as the customers are more comfortable with this payment system. On the other hand, consumers can make transactions in their house as it is not necessary for them to go to the shopping centre. For example, the customers can book cinema ticket through their hand phone. Besides that, as a matter of convenience, the customers no need go to find ATM machines when they have insufficient cash on hand. Hence, it will continue to continue to growth as consumer’s confidence on mobile payment increased.
For consumers’ adoption strategies, most of the companies offer bonus point, promotion, rewards and various incentives to build up the loyalty of the customers. For example, Hotlink will give extra credit to Hotlink users with certain calls or points.
From the link above,to the ecommerce’s blog, we can know that many offline businesses have started to move their step into electronic retailing (e-tailing). E-tailing simply mean retailing conducted over the internet, online. The e-tailing most likely is sale of goods and services to individuals (B2C). E-tailing has become a competitive advantage to the business as the internet became so important and popular nowadays. An example of e-tailing is the Amazon.com which is also the king of retailing. Amazon has continuously expanding and enhancing their product selection from books to electronic product to other nonretail activities. Some special features such as amazon allows customer to send and receive email to the book author has retain the loyalty of the customer.
From the blog, we can see that various business, even fisherman in Tanjung Dawai also go to e-tailing. We can’t deny that internet already play an important role in business. It also increases the standard of living of the fisherman while benefit them in term of profit.
In order to survive in e-tailing, it’s not just creating a website online and do then carrying out the business. It must also provide some special services or features in order to differentiate their website from other. From the example, we can see that online shopping is being top of the e-tailing market. However, many consumers are worrying about the size of clothes that they purchased does not fit them . To overcome this problem myShape.com allow consumer to purchase personalised clothing collection matched with their style and fit preferences and body dimensions.
E-tailing can enhance your business. Business in the offline market can consider starting their business online. Online market is globalisation and we can attract many customer. In additon, setting up a webpages is much more easier compare with open a physical outlet. However, from our opinion, physical market is equally important for us. For example, Dell which is well known as selling personal computer and laptop through online is already conducting their business in the offline market. As some consumer will be more confident and convincing in the product in the offline market. Offline market reduces the fraud and other security issues in the internet. Moreover, it also reduces the unemployment rate. Therefore, the better way is to make a combination in your business through physical market and online market.
Consumer likes to purchases an item or service through credit card anytime anywhere. The convenience of using credit cards has stimulated the usage among people which has become a big social problem as it can lead many people into bankruptcy. Debts will increase when the consumer unable to pay the company for the money he or she spent. There have several reasons that cause the credit cards debt, such as following:
Poor Money Management People are unconscious in conducting a monthly spending plan and do not keep track of monthly bills and that why individuals have accumulated many credit card debts. They usually spent on the unnecessary or no value items and when there is a need to purchases the required items people may short of cash and use credit card frequently. There might have some charge on purchasing using credit card, people tend to pay for the interest on these purchases every month. Thus, it end up with debt when they unable to make payment.
Lifestyle
Nowadays, people are likely to live in the lifestyles that they preferring even they may spend more than they earn. Therefore, they find that using credit cards is the one of the way to afford their lifestyle. For example, they may prefer to have luxury living style such as to having decoration, limousine, having meal in high-class restaurant, braded clothes and so on which are the causes of credit card debt to be a lot when they unable to pay the debts.
Consumption Due to the convenience of using credit card, people tend not to bring a lot of cash goes for shopping. What they need just to bring along the light and handy credit card and purchase the merchandises and services that they want rather than to worry the insufficient cash to be consume. As a result, they would not realize how much they actually expended at the time, they will only know until the bill send from credit card bank which may causes a lot of debt need to pay.
Financial Ignorance People less of the financial knowledge, so they spent money without taking into the consideration the key concept of saving and investing. They spend too much and save little. They are responsible to theirs life and money anyways so that they have to find out the correct ways to spend money. However, nowadays financial mistakes are increasingly expensive and complicated to resolve. The deficiency of financial knowledge raises the credit card debts because people tend to use credit cards in the incorrect ways without knowing the financial strength and limitation.
On the other hand, there have some of the PREVENTION METHODS to overcome credit card debts:
1. Set a clear BUDGET
People have to create clear budget and stick on it that includes monthly bills, food, clothes, entertainment and miscellaneous expenses will prevent from overspending and fall under deeper debt load. Otherwise, can get advices from a consumer credit counseling centre where they will help you work out different payment options for your credit cards.
2. Deal with CREDITORS
Address the problem to creditors to investigate whether they could give revised payment arrangement when having trouble to pay off debts because running away is not a good solution. If not, may refer to Fair Debt Collection Practices Act if the collection of money from creditors is not fair enough. Creditors may approve proposal and accept modified payment plan when hiring a good credit card debt consolidation companies.
3. Get rids of DEBIT CARD
By using debit cards, people will not spend more money than money they have and wont over the limit. There is no doubt that debit cards are a superb toll to get rid of credit card debt.
4. Get rids of CREDIT CARD
Get rids of credit card is one of the ways to live a debt free life. People can limit the number of card and using credit card that provide low interest balance transfers, transfer the balances from your other cards onto the card with the lowest rate. Besides that, only use the credit card when there is an emergency.
5. SELF CONTROL AND DISCIPLINE
The best practices of getting out of the credit card debt are able to pay back the full amount each month and only use in emergencies. Thus, self control and discipline to keep these cards in wallet and would not overspend. Besides that, avoid impulse purchases. Only purchase items that really needed. Do not buy it if it not a necessity. If you think you have badly in self control you can tear up credit card applications when the credit card company sends you those application forms.
Resisting the pressures of the credit card society will be a lot easier once you have set your mind to it, and started to feel the benefits. Enjoy the process, and you will be a cash convert for the rest of your wealthy life. ^^
Electronic currency, or e-currency, is an approach of trading currencies electronically through brokerage account. E-money, electronic cash, electronic money, digital money or digital currency are some of the terms of e-currency. Examples of e-currency are Electronic Fund Transfer and direct deposit. Electronic Fund Transfer is type of computer-based system to conduct financial transaction through online. Direct deposit is an electronic transfer of a payment directly from the account of the payer to the payee. E-currency was officially accepted in 1999 by the countries of the European Union to simplify business by eliminating the exchange rates.
Advantage
E-currency allows people to make money on the Internet using their personal computer. E-currency allows people to start business or trading electronically with low cost. It only needs as low as few dollars to start e-currency trading or do business. It is suggested to the beginners that they should start with few dollars investment so that they can learn how the e-currency works. It depends to you whether you want to increase the investment. You will not spending too much on investment as the e-currency gave many chances to earn money.
Besides, banks offering many services whereby a customer can transfer funds, purchase stocks, contribute to their retirement plans and offer a variety of other services without having to handle physical cash or cheques. Customers do not have to wait in lines and this provides a lower-hassle environment. In addition, debit card and online bill payments allows immediate funds transfer of funds from an individual’s personal account to a business account without any actual paper transfer of money.
Disadvantage
Although there are some benefits of e-currency, there are also many significant disadvantages. These include fraud, failure of technology, possible tracking of individuals and loss of human interaction.
Fraud over digital cash has been a pressing issue in recent years. Hacking into bank accounts and illegal retrieval of banking records has led to a widespread invasion of privacy and has promoted identity theft.
There is also a pressing issue regarding the technology involved in digital cash. Power failures, loss of records and undependable software often cause a major setback in promoting the technology.
Privacy questions have also been raised; there is a fear that the use of debit cards and the like will lead to the creation of a global tracking system by the banking industry. Some people are working on anonymous e-cash to try to address this issue. The issue of providing anonymity to users itself introduces more problems, however; there is the distinct possibility that a fully anonymous digital cash system could permit the "perfect crime" - i.e., where a criminal uses someone else's electronic cash to make a payment, but cannot be traced - to occur. For this reason, 'revocable anonymity' is a suggested solution: a user is fully anonymous until they commit some crime, at which point authorization is given for their identity to be revealed. However, critics of this policy point out that the anonymous users will never be caught and held trial (thus their identity will never be revealed) without tracing.
Future evolution
The main focuses of digital cash development are 1) being able to use it through a wider range of hardware such as secured credit cards; and 2) linked bank accounts that would generally be used over an internet means, for exchange with a secure micropayment system such as in large corporations (PayPal).
Furthering network evolution in terms of the use of digital cash, a company named DigiCash is at the focus of creating an e-cash system that would allow issuers to sell electronic coins at some value. When they are purchased they come under someone’s own name and are stored on his computer or under his online identity. At all times, the e-cash is linked to the e-cash company and all transactions go through it, so the e-cash company secures anything that is purchased. Only the company knows your information and will properly direct purchases to your location.
Theoretical developments in the area of decentralized money are underway that may rival traditional, centralized money. Systems of accounting such as Altruistic Economics are emerging that are entirely electronic, and can be more efficient and more realistic because they do not assume a zero-sum transaction model.
Below are selected e-currency companies:
E-bullion - e-Bullion® is electronic bullion: international electronic currency fully backed by physical precious metals stored on behalf of account holders in Treasury Grade bullion storage facilities.
E-gold - The leading e-currency payment systems backed by physical gold.
Liberty Reserve - Liberty Reserve is an online payment system and provider of digital gold currency (LR-gold)
Moneybookers– Wallet for Internet which allows people to shop and send money worldwide.
Pecunix - Digital currency operator. Pecunix is backed by gold, and offers an advanced and secure API for merchants and users.
Mobile payment system(also known as mobile web payments or WAP billing) allow individual to make the payment through their mobile phone, smart phone, Personal Digital Assistant(PDA) or other such device. It can use to purchases either digital or physical goods. Digital product refers to the intangible products that can be transfer over a digital network such as songs, games and wallpaper for mobile phone.
have a great potential as the customers are more comfortable with this payment system. On the other hand, consumers can make transactions in their house as it is not necessary for them to go to the shopping centre. For example, the customers can book cinema ticket through their hand phone. Besides that, as a matter of convenience, the customers no need go to find ATM machines when they have insufficient cash on hand.
have a great potential as the customers are more comfortable with this payment system. On the other hand, consumers can make transactions in their house as it is not necessary for them to go to the shopping centre. For example, the customers can book cinema ticket through their hand phone. Besides that, as a matter of convenience, the customers no need go to find ATM machines when they have insufficient cash on hand.
in order to differentiate their website from other. From the example, we can see that online shopping is being top of the e-tailing market. However, many consumers are worrying about the size of clothes that they purchased does
