Showing posts with label week 5. Show all posts
Showing posts with label week 5. Show all posts


Potential and consumer adoption strategies

Mobile payment system had become most popular payment method among Malaysian. From the wikipedia, Mobile payment is new and rapidly-adopting alternative payment method – especially in Asia and Europe. Instead of paying with cash, check or credit cards, a consumer can use a mobile phone to pay for wide range of services and digital or hard goods such as music, book, video and etc.


According to our finding, TeleMoney is the country's first mobile payment service via multi-channel access for Internet and wireless transactions and its was fully operational in the first quarter of 2002. It is a service free of banks and Telco dependence; a customer with a credit card or debit card with a cellular phone can register for this service. So, Malaysians can now enjoy a secure and convenient way to conduct mobile commerce using a GSM cellular phone.

As for the potential, mobile payment aims to foster close collaboration between banks and mobile operators to build a secure and interoperable ecosystem for mobile financial services to grow in Malaysia.

According to ABI study, it’s had examines that potential for mobile payment in four vertical markets that will drive adoption in :

-taxis
-parking
-movies
- Internet shopping.




As for the consumer adoption strategies, DiGi had offers Customers Openwave's Solutions to Incite Fun with Mobile Phones in year 2009. This secure provisioning provides better customer service while reducing operating and customer care costs.


In addition, the seamless initiation promotes service trials and encourages rapid consumer adoption. Beside that, Hotlink also offer the consumer by giving gift at certain level of purchasing or giving redemption of reward and give extra credit to customers which are Hotlink user.

As a conclusion, Mobile payment system has to be continues to development so that there are more advance and easy for us to use.




Credit is the promising to spend future earnings in order to obtain a good or service today. A credit card entitling its holder to buy goods and services based on the holder’s promise to pay for these goods and services.

Credit card can be your best friend if uses wisely but it can also be your worst enemy without proper money management which leads to credit card debt. The debt will accumulates and increases via interest and penalties and the consumer will struggle to clear the balance for the rest of the year.














Causes & Prevention:

1) Excessive spending
Spending too much on things you may not really need is likely the most common cause of amassing credit card debt. We’re living in a consumer culture, with glittery advertisements beckoning us to buy, buy, and buy around every corner. Sometimes, it can seem impossible to resist taking out that credit card and swiping it through to get what you want. But spending beyond your means will cause you to quickly become buried in debt.
So…….

To curb overspending, make a budget of your necessary expenses each month. And, most importantly, stick to it! Identify expenses that you don’t really need each month and eliminate them. Before you make an impulse buy, ask yourself, “Do I really need this? Or am I just spending money to spend money?”


2) Poor money management
Money management consists of everything from monthly budgeting to bill paying to savings and investment contributions. Dropping the ball in one area will likely cause control of your finances to slip out of your hands. For instance, if you miss paying your monthly credit card bills, you will be charged high late fees at substantially higher interest rates.
So……….

Set up an automatic bill pay transfer to take care of your monthly payments. Also, keeping a calendar (electronic or hard copy) for when your payments are due is another effective way to keep on top of your due dates.


3) Not saving or saving too little
Contributing regularly to savings account(s) is an important part of money management. If you’re contributing very little or no funds to savings, you will likely reach for your credit cards to cover any unexpected or emergency expenses
So…..

Set up an automatic monthly transfer from your checking account to a savings account


4) Choosing the wrong card
So….
Shop around and get a credit card personalized for your particular situation.


5) Not knowing the interest rate
So….
Find out the interest rate you were offered and also the interest rate the issuer actually gives you upon approval. In addition, check the rate on your monthly statements because credit card issuers can raise your rates for little or no apparent reason and with little warning.




Resources :
http://en.wikipedia.org/wiki/Credit_card
http://www.jermaineharris.com/2009/06/finance-103-credit-card-management/ http://www.3debtconsolidation.com/creditcardmistakes.
html http://www.cardratings.com/howtoavoidcreditcarddebt.html



Review on "Using Touch n Go to buy fast food in Malaysia will be reality" which is one of the post of e-tailing from My E-Commerce blog.



Have you think about if one day, your wallet is run out of cash and you've drop or forgotten to bring all your credit cards and ATM card but inside there is only have one piece of Touch 'n Go card which contains about few hundred bucks inside? But again, you only aware that after you're ordered your food in a particular fast food restaurant?

Some may answer "Well, I can just cancel my order" or "Walk out from the fast food restaurant directly". Such action may create a very embarrassed situation. But from now on, I believe this will not be an issues for everyone who is the holder of Touch n Go card, we will look into it more further later.


Touch 'n Go which is a charge card that make prepayment in order to top up the value of the card. Such card which is currently being widely used in Malaysia for the toll fees collection, public tranports and parking paying device.


From April 2008 onwards, Touch n Go are available for use to purchase burger, drink, doughnut, and even movie tickets from 21 outlets which located in the Klang Valley under the pilot scheme.

Those 21 outlets which under the pilot scheme are such:

7-eleven, A&W, Caltex, Burger King, Dunkin Donuts, Cathay Cineleisure, and there will be more in the coming future.

By providing such service, Malaysian will slowly adopt into this cashless transaction culture. In Hong Kong, a prepaid charge card which same as Touch n Go in Malaysia called Octupus card.




For what i knew, such culture were adopt by Hong Kong citizen successfully. The Octupus card that their holding are accpeted widely within the country, no matter in retail outlet, restaurant, public transports and so on.

According to Hasni Zarina Mohamed, who is the chief operating officer of Touch n Go, stated that such adpotion is to assist and support Bank Negara's to move for a cashless society. She hope that by next year the rate of the cardholder used it for retail is about 5% to 10%.

By the way, it is a good start for providing such services in Malaysia, because we malaysian can have another alternative ways to make transcation payment beside using bank notes, coins, and credit card.

Picture below shown the purchasing of doughnuts at Dunkin Donut by using the Touch 'n Go....

_____________________________________________________________________________________________________
Source:
Information
  • http://thestar.com.my/news/story.asp?file=/2008/4/12/nation/20902911&sec=nation
  • http://ecommerze.blogspot.com/2008/04/using-touch-n-go-card-to-buy-fast-food.htm
Pictures and images
  • https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh60dIFjPEl_jTEXuQ2SrGtQAp-Ox6peQpwweJDE-c1qq-G6SFP_ZlZNiHVPqw0jA9riWCvTkHP-28UH-nUNZtdHhzXxrJwrVykCLWdNd5_WNCcJwdXLauN2Wdrlujp2dShx9aI4XKTi6_H/s400/Cashless.JPG
  • http://www.touchngo.com.my/



According our study, one rare success has been Hong Kong's Octopus card system, which started as a transit payment system and has grown into a widely used electronic cash system.


Singapore also has an electronic money implementation for its public transportation system (commuter trains, bus, etc)-FeliCa.

The first attempt of e-currency implementation in Malaysia was in 1999 with the introduction of MEPS cash in Klang Valley. The facilities to reload the cards with cash was limited, the outlets where MEPS cash was accepted was also few in numbers.Another implementing e-currency in Malaysia came in the form of the Touch ‘n Go cards offered by Rangkaian Segar for toll payments and other services.



Advantage :

It’s adequately protecting the privacy rights of the customer. The existing electronic currency systems have different effects on privacy and confidentiality which vary from total anonymity to audited systems in which almost every aspect of each transaction is collected.

Disadvantages:

One of the disadvantage of electronic currency is fraud. If private key is misplaced by the consumer and used by a perpetrator to withdraw funds, the bank wouldn’t even know and the consumer would be considered liable.

Secondly is the double spending of digital coins, but this is no more a potential drawback and can occur only if the consumer chooses a peer-to-peer transaction. In other sort of transactions in this system bank can check the serial number of every coin in transaction against the database of spent coins. The transaction can be denied if the coins have been spent.


As conclusion, electronic currency has a great opportunity to transform today’s economic world and provides higher security and privacy than the present traditional forms of payment.



Reference:

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