Mobile Payment Systems in Malaysia: Its Potentials and Consumers' Adoption Strategies

Mobile payment systems are processing a payment for goods or services through a mobile device such as mobile phone, Personal Digital Assistant (PDA) or other mobile devices.

There are two primary methods for mobile payment that are:
(a) premium SMS based transactional payments
In this method, the consumer sends payment through an SMS text message and the charges will applied to the phone bills. When the consumers make a payment, the consumer and the seller will be informed with the success of payment. Then, the seller will send the goods or provide the services to the consumer. The goods and services provided are not physical goods or services. The items are such as wallpaper and ring tones.

(b) mobile web payments (WAP)
This process replaced the premium SMS based transactional payments. In this method, the consumers can purchase physical goods compare to SMS payment. Consumers use web pages displayed on their phone to make a payment. Below are the steps for payments for this method that i found in a website that being use in Australia:

In Malaysia, the example of mobile payment systems website is Mobile Money (http://www.mobile-money.com/). This website provides physical goods for sale. This website allows everyone to pay anyone, at anytime from anywhere with just one SMS and vice versa. This payment system is very secure and it is a closed loop payment system.