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.

Electronic currency ~> Paystone

Paystone Technologies Corporation is a private Internet payment and money transfer company dedicated to providing secure, easy and real time Internet transactions. It is founded in year 2001; Paystone has operations in the United States, Canada and the Philippines with International cash out capabilities in many other countries.

Paystone provides an inexpensive online payment method without the risk of chargeback from fraudulent credit card use. Paystone can handle small financial transactions which we called micropayments as low as $0.25. The ability to process micropayments opens a whole new world for entrepreneurs of all sizes. Nowadays, a small business or an individual has a chance to generate revenue from their website quickly, easily and inexpensively. This makes a whole new range of content available to personal account holders. The large online merchant can also realize the full benefits of the Paystone in order to expand and increase the profitability of their business.

In addition, Paystone also provides an email money transfer option. A Paystone account holder can send funds to the email address of anyone in many countries around the world. The recipient of the funds signs up as a member and can cash out the money to their local bank account. For companies that send a large volume of payments they can access to GroupPay© feature to send money for many individuals at one time.

Reference:
(1) http://www.paystone.com/
(2) www.aboutus/org/PayStone.com