e-commerce: Mobile Money Payment System in Malaysia

Neowave Mobile Money (MM Wallet)

Mobile Money is a PIN-based Mobile Payment Solution to address the limitations and bottlenecks created by cash, cheques and credit cards. It unlocks the power of the mobile phone to make payments, allowing registered users to pay for goods and services at anytime, anywhere using only a mobile phone coupled with a 6-digit security PIN (Personal Identification Number) via SMS (Short Messaging Service). This gives the freedom to shoppers to buy products online and pay the merchant using his/her mobile phone without being physically present at the store.

Mobile Money will encourage more consumers to shop online. This will definitely be a great boon to the e-commerce industry in Malaysia. It will surely encourage more merchants to adopt online selling as an extra sales channel which complement perfectly with their offline sales channel to help them sell more of their goods and services. Realizing these needs of merchants in Malaysia, Neowave is the 1'st shopping cart software provider who has integrated Mobile Money as a payment method in their webShaper e-commerce software. This feature allows merchants to accept payment via Mobile Money and process the payment in real time within clicks.

In order to pay using Mobile Money, a shopper must have a savings, current or credit card account with participating banks. It functions like a Credit Card if a shopper applies for a "Pay by Mobile Phone" credit card account (eg Hong Leong Mobile Credit Card). The shopper will be billed by the bank accordinly by month's end. In addition, it functions as a Debit Card if it is tied to shopper's savings or current account. The amount will be deducated instantly from the account upon successful transaction.

How Mobile Money Works?

1. Customer That Purchase Online from an E-commerce Website

2. Pay by Mobile Phone Number
(Applies to customer purchase from merchant's brick-and-mortar store or Remote Payment)

1. Customers choose to pay via Mobile Money for the goods and services from participating merchants.

Customer gives merchant his/her mobile number via phone, fax, email etc.

2. Merchant can bill the customer via IVR, Mobile Money website or SMS. When merchant requests for payment with customer's mobile number, Mobile Money sends an SMS with a Bill Reference Number to customer requesting customer to to reply with their 6-Digit Security PIN to approve the payment.

3. Customer authorizes payment by replying the SMS with the Bill Reference Number and customer's 6-digit SECURITY PIN.

Mobile Money authenticates customer's SECURITY PIN and requests for bank approval on transaction.

(In this illustration, 001 is the Bill Reference Number while 123456 is the security PIN. In simpler terms, 001 means it is the 1'st SMS request for payment, 002 means the 2'nd, 003 means the 3'rd and the number increases. )

4. upon receipt of bank's confirmation to debit customer's mobile credit account or mobile Debit account, Mobile Money will send a payment notification with details to merchant as well as customer.