Post by Ching Wen, 3 July 2009 @ 10:06 pm
Mobile payment system can be done via mobile phones. It is where money is transferred from one party to another, by means of an intermediary or directly, without an intermediary. Mobile payment system is also introduced in ticketing, peer to peer fund transfers purchases on the internet and purchase of goods.
There are certain potentials in using mobile payment system. Mobile payment system makes consumers to potentially increase their desire in the purchasing of goods. Furthermore, it makes consumers feel at ease as they can buy the goods at the moment they have the desire to do so. For corporate purposes, it can enhance customer service by introducing new products or services via offering more convenient payment method for purchase. Besides that, it brings a positive effect to the company image; as the companies can save cost compared to traditional payment method. Mobile payment systems have become universally and widely accepted to customer, merchants and companies. Payment through mobile is also handy as consumers do not need to search for ATM machines to withdraw money for making payments. Mobile payment system is much more secured compared to cash or credit card.
- It provides commercial grade short message service (SMS) to people and business that want fast and reliable messaging services.
2. Mobile Money
- A PIN-based Mobile Payment solution for the limitation and bottlenecks created by cash, check and credit card. It allows registered user pay for goods and service at anytime, anywhere by using mobile phone with a 6-digit security PIN via SMS.
3. Paybox.
- “Paybox” was set up as a holistic mobile banking system which allows customers to access their accounts at any banks.
There are four types of mobile payment can be used by user, which are stated as follow:-
1. SMS based transactions, which is based on sending SMS for payments. This is the easiest but less secured method. It is less secured because any hacker can read the SMS details. It is also unreliable as the services varies, relying on SMS server traffic.
2. Direct mobile billing method which usually charges a fee for the payment made. However, this method is more secured than SMS, which is attributed by two-way authentication.
3. Mobile web payment using web pages or additional software on user’s mobile to make payment. It is done by wireless access protocol (WAP) to make payments, which is also more secured and works better as compared with the other type of payment methods.
4. Near field communication is a smart card installed in a user’s mobile phone whereby the mobile phone can be used for payments in shopping malls.
Relatively, advantages in mobile payment could affect the consumers’ adoption of mobile payment. By comparing the traditional payment methods with mobile payment methods, consumers are able to make purchases anywhere and anytime.Consumers do not need to wait hours in queue for counter payments; they can merely use their mobile phones to conduct payments which can save time. Furthermore, consumers feel comfortable and convenient carrying out mobile payments due to its low-value transaction costs. Low-value transactions are payments for movie tickets, transportation and so on.
Cost saving is one of the strategies that consumers adopt by using mobile payment system. In making transfer of funds or payments, consumers need to pay transaction cost first. By providing low transaction cost, the consumers tend to adopt mobile payment system.
Furthermore, another type of adoption strategy is by educating the consumers about mobile payment system. By widely spreading and advertising about the mobile payment strategies, consumers will feel more confident and comfortable while using mobile payment systems. This is because some consumers do not have knowledge about mobile payment system and some of them do not even know what mobile payment system is. Therefore, the government or any other related parties should advertise and provide seminars on how to use mobile payment systems. Besides that, the government should promote the relative advantages of using mobile payment, so that consumers will feel more confident while using it.
Although mobile payment brings a lot of benefits to consumers, there are certainly security risk involved while conducting mobile payments. Mobile payment system should include essential features that protect confidential information of the users. Service providers should enhance their security system and carry out updates regularly. These will increase consumer’s adoption of using mobile payment.
Moreover, the service provides should design the websites so that the WebPages fit nicely into the mobile screens.This can create a more user friendly system where consumers do not get confused nor frustrated while using mobile payments.
Lastly, lower selling price of mobile phones can encourage consumers to use mobile payment systems. Consumers are able to perform mobile payments by purchasing a mobile phone for less that RM200, which has General Packet Radio Service(GPRS) enabling them to connect to the internet and to perform mobile payments.
References:
http://project.hkkk.fi/helsinkimobility/papers/Mobile%20Applications_2_3.pdf
http://is2.lse.ac.uk/asp/aspecis/20020144.pdf
2 comments:
now only i realize payment not only can made through internet, payment also an made through mobile. thanks for sharing
cool, at that time no need brng money out, just bring mobile phone buy thing
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