2. WHAT
IS
M-COMMERCE?
The term mobile commerce was originally
coined in 1997 by Kevin Duffey at the
launch of the Global Mobile Commerce
Forum, to mean "the delivery of electronic
commerce capabilities directly into the
consumer’s hand, anywhere, via wireless
technology."
4. HISTORY
M-Commerce Services were first delivered in 1997,
when the first two mobile-phone enabled Coca Cola
vending machines were installed in the Helsinki area
in Finland. The machines accepted payment via SMS
text messages. The first mobile phone-based
banking service was launched in 1997 by Merita
Bank of Finland, also using SMS.
The M-Commerce server developed in late 1997 by
Kevin Duffey at Logica.
Since the launch of the iPhone, mobile Commerce
has moved away from SMS systems and into actual
applications.
5. E-COMMERCE
v/s
M-COMMERCE
M-commerce stands for Mobile Commerce while E-
commerce stands for Electronic Commerce.
M-commerce uses mobile devices for commercial
transactions while E-commerce uses Computers.
M-commerce is available anyplace you go, even if there
is no cable Internet. For E-commerce, you still need to go
to a place where there is Internet to access your online
transactions.
M-commerce is very handy and easy to carry while
E-commerce you cannot
always bring with you ,your
computer or laptop
anywhere.
M-commerce however is
costly compared to E-
commerce.
7. PLAYERS
IN
M-COMMERCE
User:-
User is defined as a person who is authorized to use his Personal
Trusted Device (PTD). Every user of M-Commerce is associated
one or more PTDs. Users of m-commerce can be divided into two
main categories:
End users or system users:
Retail subscribers of mobile phone services who uses mobile
phones for commercial activity comes under this category. Here the
benefit or the end-result is received by the subscriber.
Suppliers:
In this category the end-result or benefit is obtained by an
organization that utilizes M-Commerce for increasing the
productivity and efficiency of its activities.
9. SERVICES
AND
APPLICATIONS
Mobile Ticketing
Mobile Money Transfer
Content purchase and delivery
Information services
Mobile Banking
Mobile Browsing
Mobile Purchase
Mobile Marketing and Advertising
Payment through E-Wallets
10. EMERGING
ISSUES
IN
M-COMMERCE
Security:-
There are security issues at several levels:-
Data Security:
One of the concerns is the data security among the different entities.
There are no standard interfaces which have been defined till now.
This has slowed down the developments in these areas.
Device Security:
A Personal Trusted Device has limited liability for a subscriber. The
question is, if a user can use someone else’s phone but pays for the
purchase of goods/services. SIM is a legal identity, as the subscriber
signs a contract with the operator. The operator owns the card. If the
equipment cannot be legally used by multiple people, then this would
put a restriction on the popularity.
11. EMERGING
ISSUES
IN
M-COMMERCE
Service Security:
Additional security features apart from what is provided
by the standard protocols are needed for commercial
organizations and other entities to entrust their
applications on mobiles.
Usability Problem:
oSmall size of mobile devices (screens, keyboards, etc).
oLimited storage capacity of devices.
oHard to browse sites.
Technical Limitation:
oSlack of a standardized security protocol.
oInsufficient bandwidth.
13. TECHNOLOGY
GROWTH
Perceived Security:
Perceived security is important for success of M-
Commerce. People are willing to give a credit card in a
restaurant but will not pay by card over internet.
However, mobile phone is more secure than a PC and
hence require lesser security systems.
Security Overhead for M-Commerce security:
Initial systems must be highly conservative in terms of
security overheads for transactions. The Telenor
solution uses SMS or a data call as a bearer to send
authentication (PKI certificates) from a mobile to a
server.
14. VARIATIONS
IN
SECURITY
POLICIES
Different security policies have to be formulated
according to scenarios. For e.g., for “small
payments” using a mobile device, an user would
not like to tolerate a long authentication
procedure. For large payments (e.g. airline
tickets), a more comprehensive security system
would be appropriate.
15. M-COMMERCE
USING
WIRELESS
TECHNOLOGY
There is an increasing tendency to associate M-
commerce with mobile technology alone. There
is a definite roll for fixed wireless systems like
WLAN and also short-range communication
systems like a Bluetooth protocol device.
16. DEVELOPMENT
OF
APPLICATIONS
Hence applications needs
to be created for two categories
of users:
o Users having low bit rate connectivity or narrow band
connectivity:
All 2G mobile users would come in this category. For e.g., a
GSM end-user can obtain a data rate of upto9.6kbps.
o Broadband mobile connectivity:
This category would involve all 2.5G and 3G users. The data
rate of this category of users would vary between 20kbps to
365kpbs depending on the technology and network.
18. Network Operators:
With increase in data traffic, there would be increased efficiency in the
network. This can be catered to by the current systems. Mobile
operators can also provide technical support for financial services
across their network.
Equipment Vendors:
With increase in data traffic there is more demand for upgrade and
next generation products. This would trigger development of more
innovative products which could handle data traffic more efficiently.
Service Providers:
M-commerce provides an opportunity for service providers to move up
the value chain by providing data and commerce applications. This
also opens up a new value chain for service providers.
19. Financial Sector:
There is increased for financial institutions and banks that
can provide additional services and also expand their
reach. It also give more opportunities for other related
organizations to assume additional roles of a Commerce
mediator.
Billing and Customer care vendors:
New billing systems and customer care systems are
required for the new systems developed. There is a
Herculean task of developing highly efficient billing
systems for the equipments.
Other wireless equipment vendors:
WLAN and short term wireless vendors can find new
applications for their products. This would increase the
usage and hence boost the industry.
