A credit card is a card that you can use it to purchase goods or services by borrowing on credit. Nowadays, credit cards are almost a necessity which has caused many people facing credit card debt. Many people prefer have more than one credit card with a balance.
In a rapid technology growth environment, many people prefer to make online purchase over the internet which can save time and allowed buyers to purchase goods from overseas conveniently. Most of these transactions are need to pay by credit cards. Besides that, some university or college allowed paying tuition fees through credit cards. This have increase the number of people using credit cards especially college students.
Every time credit card users use a credit card, they are borrowing money from the credit card issuer. Therefore, each time use the credit card, they are increasing their credit card debt. Credit card user will receive a statement showing the total credit card debt with which given the option of paying the balance in full or making a partial or minimum payment each month. Many users especially those did not have the ability to pay off the balance in full will make the minimum payment only. When making only the minimum payment due, there will be interest charged on the balance owed. Other than that, the new monthly interest charges are calculated on the prior months balance causes user to end up paying interest on the previous month’s balance as well. Therefore, the credit card balance will keep on increase. The credit card debt cycle continues to increase even faster becomes a large amount that can seem impossible to pay off especially if spending habits are not controlled.
Prevention is better than cure. The credit card debts can be prevent in some ways. The key to solving the credit card debt problem is to stop the cycle. People should spend within their means, and if they are using their credit cards to purchase, they should have the means to settle the full payment at the end of the month. For those people such as students who do not have the financial ability to settle the credit card payment every month is not encourage to apply for credit cards. Users especially those holding more than one credit card should cut up the credit cards so that they will not tempted to use them. Besides that, people can apply and use debit cards instead of credit cards which can allow users spend within the constraint.
Nowadays, prepaid cards are using widely around the world. It is just like a credit cards, purchase products and services without any cash on hand. However, the difference between prepaid card and credit card is the prepaid card users can only spend when the prepaid cards are reloaded its balance.
Application of prepaid cash card · Online purchase Prepaid card users can purchase any products and make payment through online. · Withdraw money It is just like an ATM card, with an authorize PIN number; card users can withdraw money within the amount deposit into the account.
· Toll payment Using Touch‘n Go card is an expressway of making toll payment at all highways and use for public transports’ fares like bus, LRT and so on in Malaysia.
· Prepaid mobile phone It also can be used to top up mobile phone’s credits. Funds can also be transfer to the prepaid phone via text message.
· Virtual traveler’s check Some prepaid card like MasterCard travel card is acceptable in worldwide. Card users can ask their family to deposit money and use it when needed in the trip.
Consumers always choose prepaid cash card when making transaction because it bring lots of benefits to them. They can go for shopping without carrying loads of cash but only shopping with a card which is safer. Besides that, consumers can control their spending which only can spend the amount deposit in the card. Thus, prepaid cash card is making consumers’ life easier!
Mobile payment system is a new alternative payment system that provides convenient way for consumers to make payment using mobile phone. Mobile payment can be used for a wide range of digital and physical products and services such as purchasing music and ringtones, paying transportation fare, parking meters, or buying tickets.
Potentials:
The mobile payment is developing fast and is well adopted in Malaysia. The payment system is very convenient as users do not need to carry along their payment cards or even cash by just using their mobile phone. It also eliminates the time queuing up for bill payments. The market for mobile payment is very large because there are many mobile phone users in Malaysia. The system covers all mobile operators in Malaysia and is available to prepaid and postpaid service billings. Therefore, the mobile phone users’ confidence on mobile payment will greatly increase.
Consumers’ adoption strategies:
1.Educate public about mobile payments, how to use and introduce its functions (e.g. bill payment, mobile purchase)
The most common usage for mobile payment system in Malaysia is to pay electric bills and phone bills. Mobile users usually download wallpapers, ringtones and mobile games using premium SMS transactional payment.
2.Enchance security and confidence to mobile users
Mobile Money allows merchants to take online order without the need for online shoppers to disclose their credit card information.
3.Collaborate with more banks and companies to widen the ability to pay via mobile at the same time it helps to increased customer’s satisfaction and confidence
Currently Mobile Money has teamed up with Hong Leong Bank Bhd and Bumiputra-Commerce Bank to allow consumers to make payments via their bank accounts linked to their mobile phones. It is targeting 1 million Malaysian mobile phone subscribers with the belief that sending cash via SMS will eventually become part of the daily life of the Malaysian community.
4.Maintain customer’s loyalty
Company can reward customers by giving gift at certain level of purchasing or giving extra credit when they used mobile payment. It indirectly ecourages the use of mobile payment.
The more civilized that mankind became, the more sophisticated became the evolution. As things change constantly, so does the currency. Hence, electronic currency is created to satisfy mankind's varied wants. Electronic currency has many terms from e-money, electronic cash, electronic currency, digital money, digital cash todigital currency. All of those terms refer to money or scrip which is stored electronically. You cannot take this money into your hands, count with your fingers or sense its. However, it is real.
Electronic currency are used as international payment unit because it meets the requirements. It is a means of payment, it is the measure of value and it can be circulated. However, rules and regulation regarding to emission of electronic currency have not been establish in some countries. Hence, trusts have always been an issue.
Now, many new products are being designed to challenge the use of currency in millions of transactions. It is undeniable that electronic currency provides uncountable advantages. However, electronic currency activities carry risks that must not be overlook. It is important that these risks are recognized and managed in a prudent manner.
References:
What is Electronic Money ? . (2008, 22 July) . Retrieved on 2009, July 22, from http://www.e-money.com/articles/4_stat.html
Has The Time For Eletronic Currency Come . Retrieved on 2009, July 22, from http://projects.tigweb.org/ecurrency/about/
Electronic Money . (17 June 2009) . Retrieved on 2009, July 22, from http://en.wikipedia.org/wiki/Electronic_money
.jpg)
