For the adoption from Wikipedia website, Mobile payment (also referred to as mobile web payment or WAP billing) is the collection of money from a consumer via a mobile device such as their mobile phone, SmartPhone, Personal Digital Assistant (PDA) or other such device.The mobile payment can be used to purchase any number of digital goods and physical goods. For example digital goods are ring tones, games, wallpaper for mobile phone and the booking cinema ticket and air ticket. Usually purchase digital good are through by SMS based transaction payments or mobile web payment (WAP).
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, thus inherits all the advantages and disadvantages of WAP. However, using a familiar web payment model gives a number of a few proven benefits:
1)Follow-on sales where the mobile web payment can lead back to a store or to other goods the consumer may like. These pages have a URL and can be bookmarked making it easy to re-visit or share with friends.
2)customer satisfaction from quick and predictable payments
3)Ease of use from a familiar set of online payment pages
However, unless mobile account is directly charged through mobile network operator, use of credit/debit card or pre-registration at online payment solution such as PayPal is still required just as in desktop environment.
Mobile web payment methods are now being mandated by a number of mobile network operators.
A number of different actual payment mechanisms can be used behind a consistent set of web pages.
Direct operator billing
A direct connection to the operator billing platform requires integration with the operator, but provides a number of benefits:
1)Simplicity - the operators already have a billing relationship with the consumers
Instantaneous payments giving the highest customer satisfaction
2)Accurate responses showing success and reasons for failure (no money for example)
3)Security to protect payment details and consumer identity
4)Best conversion rates from a single click-to-buy and no need to enter any further payment details.
5)Reliability that builds confidence
6)Reduced customer support costs for merchants and operators
7)Higher payout rates with operators such as Vodafone in the UK delivering up to 86% in some cases
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, thus inherits all the advantages and disadvantages of WAP. However, using a familiar web payment model gives a number of a few proven benefits:
1)Follow-on sales where the mobile web payment can lead back to a store or to other goods the consumer may like. These pages have a URL and can be bookmarked making it easy to re-visit or share with friends.
2)customer satisfaction from quick and predictable payments
3)Ease of use from a familiar set of online payment pages
However, unless mobile account is directly charged through mobile network operator, use of credit/debit card or pre-registration at online payment solution such as PayPal is still required just as in desktop environment.
Mobile web payment methods are now being mandated by a number of mobile network operators.
A number of different actual payment mechanisms can be used behind a consistent set of web pages.
Direct operator billing
A direct connection to the operator billing platform requires integration with the operator, but provides a number of benefits:
1)Simplicity - the operators already have a billing relationship with the consumers
Instantaneous payments giving the highest customer satisfaction
2)Accurate responses showing success and reasons for failure (no money for example)
3)Security to protect payment details and consumer identity
4)Best conversion rates from a single click-to-buy and no need to enter any further payment details.
5)Reliability that builds confidence
6)Reduced customer support costs for merchants and operators
7)Higher payout rates with operators such as Vodafone in the UK delivering up to 86% in some cases
Credit Card
A simple mobile web payment system can also include a credit card payment flow allowing a consumer to enter their card details to make purchases. This process is familiar but any entry of details on a mobile phone is known to reduce the success rate (conversion) of payments.
In addition, if the payment vendor can automatically and securely identify customers then card details can be recalled for future purchases turning credit card payments into simple single click-to-buy giving higher conversion rates for additional purchases.
Online (such as PayPal)
Online companies like PayPal, Amazon Payments and Google Checkout also have mobile options. These require customer to register with a personal pin before making payments. Subsequent payments also require a pin code to be used. This is known to lower the success rate (conversion) for payments.
Companies like PayPal, Amazon Payments and Google Checkout can be integrated with directly or can be combined with operator and credit card payments through a unified mobile web payment platform.
Mobile Web Payment Providers
Mobile web payment providers include Billing Revolution, PayPal, Google, Amazon Payments, Luup, Javien, Valista, etc
In Malaysia, mobile payment is recently services developing fast. This service is effective providing customers with admission or money off vouchers which can be unique coded or designed to allow viral spread. The mobile channel can be effectively used as a self-funding and revenue generating medium. This service covers all mobile operators on Malaysia; it’s for prepaid and postpaid service billings.
Mobile payments services indeed have a great potential and advantage. Consumers are more comfortable with low-value transactions over such non-traditional means. Common applications will include payment for transportation, parking, restaurants, convenience stores, retail outlets, e-tickets to name a few - typically for low-value items. This helps especially when consumers are in need of cash but doesn’t have any in hand, therefore with mobile payments they do not need to even search for an ATM machine to withdraw the needed money for the payment.
For consumers’ adoption strategies, in Malaysia, most of the company will reward the consumer by giving gift at certain level of purchasing or giving redemption of reward. Beside that, some of the company will give extra credit to customers which are Hotlink user. With certain call and receive will accumulated the points to redeem air time or sms.
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