***Mobile Payment System in Malaysia~ It's Potentials and Consumers' Adoption Strategies***.

Mobile payment is a payment method that a consumer using a mobile phone to pay for services such as music, videos, ringtones, books, magazines and tickets. It is not using of cash, credit card or cheque.

There are few primary models for mobile payments:

• Premium SMS based transactional payments

This is where the consumer sends a payment request via an SMS text message to a shortcode and a premium charge is applied to their phone bill. The merchant involved is informed of the payment success and can then release the paid for goods.

• Direct Mobile Billing

This is where the consumer uses mobile billing option during checkout at an ecommerce site such as an online gaming site to make a payment.

• Mobile web payments (WAP)

This is where the consumer uses web pages displayed or additional application s/he downloaded and installed on his/her mobile phone to make a payment. It uses WAP (Wireless Application Protocol) as underlying technology. Mobile web payment providers include Billing Revolution, PayPal, Google, Amazon Payments, Luup, Javien, Valista, etc.

Mobile Money is the mobile payment system now available in Malaysia. It also known as Mobile Wallet. Mobile money provides any hand phone users the convenience to pay anyone, anytime and anywhere. 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 allows registered users using only a mobile phone coupled with a 6-digit security PIN (Personal Identification Number) via SMS (Short Messaging Service) to pay for goods and services at anytime, anywhere. It also is a payment service provider that allows users to TAP to Pay (using MM Card) with just one account.

In order to attract the consumers adopt the mobile payment system, we should tell the consumers about the advantages of mobile payment system. There are significant advantages of mobile payments which are provide greater applicability than other payment. It’s because of very high usage and availability of mobile telephones. Because of the wide spread of mobile phones, accepting mobile payments may become more attractive for merchants. In particular of young people, they constitute an important part of digital content demand such as ringtones and games, so payment via mobile phone bills may be the only way for them to purchase goods.