Electronic Currency

What’s electronic currency? It refers to money or scrip which is exchanged only electronically. Typically, this involves use of computer networks, the internet and digital stored value systems. With all the tremendous technology, everything can be done electronically. You no longer have to drive out to buy but just click click click and everything DONE!

An example of digital stored value systems is Hong Kong Octopus Card which was the first contactless smart card system in the world and has since grown into a widely used payment system for virtually all public transport convenience stores, supermarkets, fast-food restaurants, on-street parking meters, car parks, and others.

Now, even Malaysia also has his very own touch n Go’ Touch n Go card, famous for its usage as a pre-load cash card used mainly for transportation and toll collection, is now expanding their applications and services towards the retail purchase, starting with particularly the fast-food industry like A&W, 7 eleven ant etc.

Pay Pal is one of the famous electronic currency which allows shoppers purchase through line. Exhibit below illustrate how Pay Pal is work.

Electronic currency is the most innovation products developed in financial and Internet circles recently, it has many advantages compare with the convention and offline medium of transaction.

1 Faster than a check

Online payments with PayPal’s Mass Payment are instant. Never again do you have to say "the check is in the mail."

2. Simple record-keeping

Minimize your accounting paperwork with a downloadable transaction history. Reconcile exceptions easily by automatically returning unclaimed funds.

3. All in One

Typically, Hong Kong Octopus Card is all in one. As a tourist, you will find Octopus indispensable for getting around Hong Kong's sights and shops as you won't need to buy individual tickets for different transport systems

4. Everyone can involve in conducting electronic currency

It doesn’t matter who you are. So long you have a computer and an account, you can start the transactions.

5. Convenience and low transactions cost

Electronic currency eliminates the usage of man power. This result in lower transaction fees compared to fees charged to a walk-in customer.

However, electronic currency will bring us benefits as well as problems. There are:

1. Privacy and security

The most obvious potential disadvantages about the concept of electronic currency are privacy and security issues. Although electronic currency is highly secured, it is not guarantee that the transaction information will not leak, if this happen, the information about individual purchasing patterns, financial information and health status might be sold to marketing companies. Worse, since the electronic currency is still a relative new technology, the high securities might not cover every possibility which a hacker can break into the system and illegally make purchase using other consumers’ identity.

2. Not widely accepted

Nowadays electronic currency is still not widely accepted by the public. This may be due to the fact that most people are still don’t confident and familiar with it .In addition to that, most consumers from non-developed countries or old generation are still more comfortable with present centuries-old medium of transactions – paper notes and coins.

3. Availability and interchangeability

The other potential disadvantages are availability and interchangeability of the electronic currency. Again, since it is still new as well as there are a number of companies which provides solutions for electronic currency, there is no one standard electronic currency that applies to all online cash transactions. For example in EBay, the most popular e-auction site, there are some categories of auction only accept Paypal for payments medium.

Credit Card : Causes and Prevention

WE get to apply credit cards everywhere, it’s just too simple. You may even sign up credit cards at shopping mall. Thanks to our banks for promoting their cards so hardly.

However, do we really know how to swipe our cards well?

Have you ever imagine you end up with flooding with lots of credit cards debts?

Can you imagine many young people at your age declaring bankruptcy?

So, what makes them to end up with this?

1. People not working out a budget and they tends forgetting about occasional items such as school expenses, Christmas, Chinese new year or Hari Raya.

2. Having too many credit cards. Some people having too many cards on hand, not 1 but perhaps 5.

The more credit cards a person has the more likely they are to use them.

3. Missing payments. Some people tend to forget to pay for their credit cards debts when due. It’s too late when they recall to pay as the debts are too heavy to pay with all the interest payments.

4. General overspending.Girls especially with shopaholic attitude tends to grab things whenever they shopping. They end up buying things that are not necessary and overspending.

5. Clients being loyal to credit card providers. Customers being loyal to their credit card providers although they’re offering higher interest rate compare to others.

6. Not prioritizing debts. The credit cards debt is built up by not paying expensive credit card debt first.

7. Getting advice from the wrong places. Some credit cards providers try to persuade the customers by asking them to apply for other cards to pay for the existing debts.

So, how we can prevent this from happen to us?

1. It’s essential to develop a monthly budget and stick with it so that we can track is there unnecessary purchase
.

2. You’ve to clear in mind that you only use this credit card when you are sure you can pay the balance off at the end of the month.

3. Not to hold more than 2 cards at a time, hold only the number of cards that you comfort with.

4. Customers are advised to apply for direct debit to avoid any missing payments.

5. Credit card holders advice to change your credit card provider oftenly once the low or interest free period is over. Remember credit card companies have no loyalty to you so don't be loyal to them.

6. If you do not have enough money to pay for full credit cards debts for that period, always keep in mind to pay debts with costs highest in prior.

7. Avoid getting advice from credit card debt advice firms who advertise on TV, Radio or in the tabloids. They may be cheating.

So people, clear your credit cards now before it's too late.

Cheers.

Mobile payment systems in Malaysia: Its potentials and consumers’ adoption strategies

What is mobile payment?
Mobile payment is design to address the limitations and bottlenecks created by cash, cheques and credit cards. It unlock 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. This gives the freedom to consumers to buy products online and pay the merchant using his/her mobile phone without being physically present at the store.
The mobile payment can used to purchase digital product or physical. Digital products for examples are ring tones, games, themes or even booking cinema tickets and air tickets! Its usually make the transaction via GPRS/WAP or SMS.

Potentials
With the launches of mobile payment system, Maxis alliances with Nokia, Visa, Maybank and Touch’n Go, few powerful financial organizations start the world’s first contactless system, has great huge potentials market. This system helps consumers enjoy the benefits of speed and convenience, similar to their Visa payWave cards on their mobile phones. Besides, this services works on any mobile and it eliminates the trouble to queue up on paying the electric bills. With those advantages, it believes that the services will enhance their satisfaction and confidence and continuing attract more customers to use it.

Strategies
Company can advertise it with the function and benefits attractively on magazines, newspaper, or even in cinemas. Each movie has few minute on advertising before the movie start. It can attract the attention of public. Besides, company can setting booth in shopping mall by giving promotion with extra credit or gift. Company need to continuing enhance the function to increase the confidence of users.



Reference:
1. http://mis-asia.com/news/articles/worlds-first-contactless-mobile-payment-system-launches-in-malaysia
2. http://www.neowave.com.my/mobilemoney_overview.asp

THE APPLICATION OF PRE-PAID CASH CARD FOR CONSUMERS

Many people are rejected after filling out a credit card application because of poor credit. The problem with this is that a major credit card is needed to make reservations for hotels, motels, car rentals and airline flights. Credit cards are also necessary when placing orders online or over the phone. Does this mean a person with bad credit can't do any of these things? Not if that person has a prepaid cash card.

A prepaid cash card account is opened by depositing money into that account; much in the same way you would make a deposit to open a checking or saving account. Once you have money in your account, you're issued a prepaid cash card that can be used anywhere one would use a regular credit card. The best part of the prepaid credit card is that you can charge to your heart's content and you won't be in debt. The money is yours and once it's gone, you can't spend any more until you make another deposit. There are no bills and no interest charges.

These cards are perfect to give to teenagers or children who are heading off to college. And employers are finding that giving prepaid credit cards to employees who travel or who entertain clients is an excellent way to control costs while away from the office.

The prepaid cash card can be used for:

• Purchases - Shop anywhere
  
  



• Money management for young adults



• Travel including reserving a hotel, flight and rental car



• Emergency needs



• Cash access at ATMs



• Employee wages & expenses



• Electronic payments



• Gift-giving



• Pay for toll – eg: Touch n GO



• Transfer money



• Pay bill