Mobile Payment System in Malaysia

Malaysia has launched the FIRST mobile payment system in year 2001. It is known as TeleMoney, the first mobile payment service via multi-channel access for Internet and wireless transactions. A customer with a credit card or debit card with a cellular phone can register for this service. By using the GSM phone and TeleMoney identification number, user can connect it to credit card, debit card, stored valued card, bank account or even the phone account. This allowed customers enjoy a secure and convenient way to conduct mobile commerce using GSM cellular phone.

Recently in April 2009, Maxis communication Bhd. in Malaysia also launched the world’s first contactless mobile payment services known as Maxis FastTab which has been trialling in October 2007 where known as Maxis Touch to Pay for that period. It uses near field communication (NFC) technology, with partners such as phone company Nokia, financial services companies Visa and Maybank, and Malaysia’s Touch ‘n Go card.

NFC is a short-range wireless technology that allows communications between devices at close range. As an open platform technology, NFC offers high levels of interoperability between devices and readers and is now the global standard for contactless mobile payments, with a wide range of features that allows credit card, debit card, ticketing and transportation payments to be integrated into a mobile phone. With this launch, customers who sign up for Maxis FastTap are able to use their Nokia 6212 classic phones to purchase goods and services at more than 1,800 Visa payWave merchant locations as well as pay for toll, transit, parking and theme park charges at more than 3,000 Touch ‘n Go points nationwide. The payment is done by placing the handset within centimeters of a Visa Wave and Touch n Go readers; the transaction is then authenticated within seconds to complete the purchase.

As a conclusion, NFC offers consumers an easy way of using a mobile device for secure transactions through a one-touch-access to services. The NFC-enabled Nokia 6212 classic will change the way mobile phone users interact with devices and services in their surroundings. This technology brings lots convenient just as the said by Nokia: It making consumers’ everyday lives more convenient.

Reference:

http://www.mobile88.com.my/News/read.asp?file=/2007/11/9/20071108201348&sec=News
http://mis-asia.com/news/articles/worlds-first-contactless-mobile-payment-system-launches-in-malaysia?SQ_DESIGN_NAME=print
http://www.zdnetasia.com/news/communications/0,39044192,39001884,00.htm

Credit Card debts: Causes and Prevention

Credit card is provides holder to make purchase in advance up to a limit fixed by card issuer example Visa and Master card. But the holder need to pay higher interest on the average daily unpaid balance. Even there is higher interest but the credit card holder still increasing. If the card holder is abuse use credit card it will cause them bankruptcy because of too much of debt unable to pay back.

The causes of credit card debts are:
Attractive of bonuses that bank provide
Nowadays there are many bonuses or gifts provide to the credit card holder when the holder use the card. Example when there have the alternative of paying RM100 Cash or sign RM100 credit card and get a gift or collect points from the issuer. The credit card holder sure will sign the card instead of paying cash because free of gift is most attractive in human being.

Medical expenses
When emergency need to treatment and don't have enough cash on hand or bank account the best way to settle this problem is using credit card for payment. Because nowadays almost all doctors and hospitals are accept credit cards.

Low income High expenses
Human have a bad habit is like to spend a lot due to attractive advertisement and lack of self control. The problem is most of them are less income especially economic downturn recently but their expenses are never cut down. So they forced to use their credit cards for household, utilities and more when their income is unable to cover the high expenses.

E-commerce
Now one of the most popular activities to do through the internet is online shopping due to convenient to the user. Almost all the E-commerce activities need to payment by credit card. So the users just have to possessed a credit card, then they can buy the things through online.


The prevention of credit card debts are:

Budget planing (pay debt 1st b4 use)

The first step toward taking control of your spending is to do a realistic assessment of how much money you take in and how much money you spend. Start by listing your income from all sources. Then, writing down all your expenses, even those that seem insignificant, is a helpful way to track your spending patterns, identify necessary expenses, and prioritize the rest. You must also keep following the plan until all credit cards have been paid off just continue to use and do not use those accounts again when the balances at zero.

Self-control discipline

One of the best practices is to have a direct set up so that able to pay back the full amount each month and use in emergencies. The important is you must always self control and discipline to make sure that not overspend and always think that use credit card like use of money even it is really not cash.

Cut down the limit

Limit your credit card use to certain categories of spending. Example pay only when there's no risk you will overspend such as insurances and utilities. Besides that, cut up your extra cards so that you are not tempted to use them and just save one card for emergencies.

Bring cash out no extra credit card

People spend more money when using credit cards compared to cash purchases. People also spend less when they look at their expenses in detail, the researchers found. So when you want to go out make sure that no bring extra credit card because the more credit card you have the more you spend.

References:

http://www.livescience.com/culture/080907-cash-credit.html

http://bact6g1.blogspot.com/search/label/Week%205

http://www.mozdex.com/prevent-credit-card-debt/

http://www.cardratings.com/howtoavoidcreditcarddebt.html

The Application of Pre-paid Cash Card for Consumers

In this technology era, everyone should has their own prepaid cash card. A prepaid cash card is a plastic card and basically the same as a prepaid gift card or a mobile phone SIM card. The card looks like a credit card or debit card and gives users the ability to purchase products and services with a card but with a crucial difference. Prepaid cash card allows people to only spend up to the amount they have pre-deposited into the account. This means that there is no risk of running into debt as it has no credit or overdraft facility. This can allow consumers have a better control over their finance and also benefits in their daily life. In short, it is safe, effective and convenient. The following are some types of prepaid cash cards:


1. Touch 'n Go

Touch 'n Go or TnG smart card is used by Malaysian toll expressway and highway operators as the sole electronic payment system (EPS). User can continue using the card as long as it is pre-loaded with electronic cash. User can reload the card at toll plazas, train stations, ATM, Cash Deposit Machines, Petrol kiosks and at authorised 3rd party outlets. Reload dennominaton is ranging from RM20 to Rm500. The purpose of implementation of this smart card was design to reduce the congestion at toll plaza. Now, this card also serve as the purpose of paying parking fees, bus and train tickets. This smart card had even spand its usability to pay bills when purchasing at A&W, Burger King, Dunkin' Donut, 7-eleven, Carrefour hypermarkets, Caltex convenience stores and Cineleisure.


2. EZ-Link

EZ-Link card is a contactless smart card used for the payment of public transportation fares in SIngapore, with limited use in the small payments retail sector. This smart card was introduced for use since January 2002 for use it on the MRT, LRT and public buses. Now, it is increasingly being used in all sectors of retail from leisure to dining or shopping. EZ-Link cards are sold, distributed and managed by EZ-Link Pte.Ltd, a subsidiary of Singapore's Land Transport Authority.


3. Octopus Card

Octopus card is a rechargeable contactless stored value smart card used to transfer electronic payments in online or offline systems in Hong Kong. It was launched in September 2007 and widely used in all public transport in Hong Kong. Besides that, Octopus card also used for payment at convenience stores, supermarkets, fast-food restaurants, on-street parking meters, cars parks, and other point-of-sale applications such as service stations and vending machines.


The Application of Prepaid Cash Card

1. Pay bill – Rent, utilities, insurance, car payment, and cell phone bills can be paid instantly.

2. Shop anywhere as long as the card using is accepted at different retailers, buys fuel at the pump, pay by phone, and shop on the Internet.

3. Get cash at ATMs, any time of the day, and any day of the week.

4. Transfer money – For some prepaid cash card they provide the convenient such as send or receive money via bank wire transfers, between two cards.

5.Pay for toll– use Touch n' Go card as an example, it can be used at all highways in Malaysia, major public transports in Klang Valley, selected parking sites and theme park

6.E-identification – Smart cards storing personal information. For example: Malaysian Identity Card, Malaysian International passport.

7. Health care – Smart card stores health data about patient, allergies, past medical records.

References :
http://www.touchngo.com.my/WhatTNG.html
http://en.wikipedia.org/wiki/Touch_n_go
http://ec.eurecom.fr/~arnaud/zds/report/node48.html
http://en.wikipedia.org/wiki/EZ-Link
http://www.ezlink.com.sg/consumer/consumer_ezlinkcard.jsp
http://en.wikipedia.org/wiki/Octopus_card
http://thestar.com.my/news/story.asp?file=/2008/4/12/nation/20902911&sec=nation

Electronic Currency

Banks have been able to move currency electronically for decades, only recently that the average consumer had the capability to use electronic transfers in any meaningful way. With the advancement in technology and more computer savvy individuals, global interaction is made available at vastly reduced cost. The Internet and E-commerce have become an commercial area, where daily payment are rendered for goods, services, information and investment. As a result, electronic payments are becoming the central part to online business between customer and seller.increasingly

Electronic currency (e-currency) can be defined as money or scrip that is exchanged electronically by using the computer networks, internet and digital stored value systems. Electronic currency is essentially a system of representation of debits and credits used to exchange value that allow a person to pay for goods and services by transmitting a number from one computer to another. It is also known as e-money, electronic cash, electronic currency, digital money, digital cash or digital currency. It has become widely used due to the emerging of e-commerce and many people use electronic currency in conducting e-commerce transactions.

Characteristics of Electronic Currency

There are some characteristics of electronic currency that making it become common among users. Firstly, the transfer of electronic currency is done at instant or 'real time', thus the transaction cannot be reversed. Once the transfer of electronic currency has been conducted, it cannot be canceled of by reversing the transfer of electronic currency process. Secondly, all the electronic currency transactions are conducted in private and anonymous way for both the sender and receiver. The transfer of electronic currency would not show the personal details of both parties, it would only show number, nick names or e-mail addresses, which do not reveal any privacy of the buyers.

Benefit of Electronic Currency:

1. Electronic currency trading allows you to do business and earn with only a few dollars of investment. Electronic currency trading does not demand much and it is really up to you if you want increase your investment or not. With electronic currency trading you are given many opportunities to profit without spending too much on investment.
2. Electronic currency trading has a low transaction cost. Unlike other business that eat up your profit with exorbitant fees, electronic currency trading allows you to do business with minimal fees giving you more profit and more money for you.
3. Electronic currency trading is versatility and convenience to the persons involved. You can work with any electronic currency trading market that best suits your needs for any time of day. The electronic currency trading business does not sleep so night or day, the world is merely at your fingertips.

Disadvantages of Electronic Currency:

1. Fraud over electronic currency trading has been a pressing issue in recent years. Hacking into bank accounts and illegal retrieval of banking records has led to a widespread invasion of privacy and has promoted identity theft.
2. There is also pressing issue regarding the technology involved in electronic currency trading. Power failures, loss of records and undependable software often cause a major setback in promoting technology.
   

As a conclusion, electronic currency has become a new form of currency in our merging world. Its impact on our daily life will be greater as now we are in this digitalized century. It brings a variety of benefits to us like make our life more convenience and easier. In the meanwhile, we need to consider some potential risk associated with the usage of electronic currency like security and fraud problem. Security and legal issue in regard to electronic currency should be taken attention by authorized bodies whether international or local bodies in strengthen and control these potential risks.

References:
http://en.wikipedia.org/wiki/Electronic_currency
http://www.nowpublic.com/what_is_digital currency_money_real_cash
http://www.ecom.jp/ecom_e/qecom/demo/elemoney.htm