The Application of Pre-Paid Cash Card for Consumers

What is cash card? It is a type of scratch card, which allows postpaid customers to make payment or purchases through the network. Prepaid values are stored on cash cards form which purchases are deducted. These cards can only be redeemed at terminals set up to accept cash cards.

By using prepaid cash card, customers do not have to wait for the bill statement. Cash card allows customers to avoid disconnection by making advance payment form anywhere, anytime. It is very convenient for customers because they can avoid waiting in a long queue in the bank. Customers in the remote area, where banking facilities is unavailable, can get uninterrupted service.

Examples of prepaid cash card in Malaysia

Touch ‘n Go enhances the speed of paying for low value but high frequency transactions. Apart from the speed, it is also very convenient because user no longer need to prepare for small change or wait in queue at the cash lane to complete the transaction.
Touch 'n Go card is not only for toll fare but also parking services, theme park, and common ticketing system (CTS) for rail transit systems.
Besides, we can also use Touch ‘n Go card in
- Fast foods restaurants:

- Convenience stores:

- Cinemas: Cathay Cineleisure

Examples of prepaid cash card in Hong Kong

The Octopus card is a rechargeable contactless stored value smart card used to transfer electronic payments in online or offline systems in Hong Kong. The Octopus card was introduced for fare payment on the MTR initially, but the use of the card quickly expanded for multiple other purposes. The card can now be used to pay fares for all public transport in Hong Kong and to make purchases for consumer products at many stores in the city; it is accepted by more than 1,000 merchants.

Notable businesses that accept Octopus cards include PARKnSHOP, Wellcome, Watsons, 7-Eleven, Starbucks, McDonald's, and Circle K.

The card can be used in many soft drink vending machines, pay phones, photo booths, parking meters, and car parks. Aside from consumer transactions, Octopus cards can also be used for access control in buildings and for school administrative functions. At certain office buildings, residential buildings, and schools, usage of an Octopus card is required to access their facilities. As of 21 November 2004, all parking meters in Hong Kong had been converted to using the Octopus card as the form of payment.

Electronic Currency

Electronic currency also known as e-money, electronic cash,, digital money, digital cash or digital currency). Electronoc currency refers to money or scrip which is exchanged only electronically. Typically, this involves use of computer networks, the internet and digital stored value systems. Electronic Funds Transfer (EFT) and direct deposit are examples of electronic money. Also, it is a collective term for financial cryptography and technologies enabling it.

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 currency implementation for its public transportation system (commuter trains, bus) A very successful implementation is in the Netherlands, known as Chipknip.

Public-key cryptography and digital signatures (both blind and non-blind signatures) make e-money possible. It would take too long to go into detail how public-key cryptography and digital signatures work. But the basic gist is that banks and customers would have public-key encryption keys. Public-key encryption keys come in pairs. A private key known only to the owner, and a public key, made available to everyone. Whatever the private key encrypts, the public key can decrypt, and vice verse.

There are two varieties of each type of electronic currency: online e-money and offline e-money. Online means you need to interact with a bank (via modem or network) to conduct a transaction with a third party. Offline means you can conduct a transaction without having to directly involve a bank. Offline anonymous e-money (true digital cash) is the most complex form of e-money because of the double-spending problem.

The are examples for electronic currency:

• BitPass - Established Dec 2002, Shut down Jan 2007
  


• Click and Buy - still in operation
  


• PayLoadz - still in operation
  


• Paystone Technologies - still in operation
  


• Peppercoin - - still in operation
  


• Beenz- collapsed in 2001
  


• DigiCash - pioneer of electronic currency, filed for bankruptcy in 1998. A new DigiCash was established recently.
  


• Flooz - established Feb 1999, closed down in August 2001

With using electronic currency, it make our life became easy and not need have to keep a lot of money in the purse.

Credit Card debts: Cause and prevention

Many credit card holder facing a problem-too much credit card debt and unable to meet credit card payment obligations, unable to afford what they really want because every extra cent has to go towards keeping up with the minimum payments on their credit cards. Other than that, some college student also facing the credit card debts (College Student Journal,

Sept, 2002by Jill M. Norvilitis, Phillip Santa Maria).

An important cause of credit card debt is people keep charging items that couldn't afford, use those little plastic cards for things that weren't necessary. Normally, people are trying to pay off yesterday's purchases, many of which have long since worn out or been forgotten, how will we acquire the things that we truly want for tomorrow?

One negative aspect of using credit cards instead of cash is that we don't feel like we're spending real money. We forget about the unpleasant or painful feelings of making the payment for the credit card statement. Studies show that most people are much less likely to buy, or will spend less, when paying with cash as opposed to credit cards. The best solution for this situation is trying leaving the credit cards at home, pay with cash, check, or a debit card.

To really prevent from spending and credit card debt, we need to examine what money means to us, and the attitudes about money. Make an effort to notice how to interact with money and efficiency way to use the money.

Another study also shows that people with low self-esteem engage in more impulse spending and buying things they don't need. Remind ourselves lack of money doesn't determine who we are. Our worth as a person has nothing to do with how much money we have. As we begin to build up feelings of self-worth and develop a positive attitude about ourselves and about money, we'll attract positive things into life. By doing so, we'll feel less of a need to generate positive feelings by purchasing things, and we'll find it easier to stop buying items we don't really need.

As a conclusion, credit card is very convenient and useful for people but it causing some people having problem to pay the credit card debts. Thus we must know how to control desire to buy the thing we don’t really need.

Mobile payment systems in Malaysia: Its potentials and consumer’s adoption strategies.

What is Mobile Payment Systems?
Mobile payment is the collection of money from a consumer via a mobile device such as their mobile phone, SmartPhone, Personal Digital Assistant (PDA) or other such device. Today, worldwide adoption of mobile payment systems is increasing, still more slowly than expected. Mobile payment can be used to purchase any goods, such as, music, videos and books.

The Mobile Money Wallet
The example of mobile payment system in Malaysia is MOBILE MONEY. It is a PIN-based Mobile Payment Solution designed by Mobile Money International Sdn Bhd to address the limitations created by cash, cheques and credit cards. It 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.

Customers are Encouraged to Use it
Mobile payment system is simple and convenient system for mobile users to make payments through mobile devices. In today’s world, almost everyone has a mobile phone in hand. This is also one of the reasons that mobile payment system is getting more and more popular. Other than that, it is also fast and efficient. Mobile payment system provides fast response and quick payment processing. This will save a lot of time for the businessman who is very busy dealing their business. Besides, mobile payment system is universal acceptance. It allow customer to pay anyone and anywhere using mobile payment through wireless networking.

Conclusion
As a conclusion, mobile payment system has brought convenient to every user. It will become more popular in the future because technology is part of our life.