THE TAMILNADU DR.

AMBEDKAR LAW UNIVERSITY, CHENNAI

I B.B.A LLB. - MOBILE COMMERCE NOTES

BY: Mrs. S. SEEMA

MODULE – I: MOBILE COMMERCE BASICS

INTRODUCTION TO MOBILE COMMERCE

Mobile commerce is usually called as ‘M-commerce’ in which user can do any sort of
transaction including buying and selling of goods, asking any services, transferring ownership or
rights, transacting and transferring money by accessing wireless internet service on the mobile
handset itself. The next generation of commerce would most probably be mobile commerce or M-
commerce.

M-commerce has several major advantages over its fixed counterparts because of its
specific inbuilt characteristics such as ubiquity, personalization, flexibility and distribution.

Typical Examples of M-commerce are:

➢ Purchasing airline tickets

➢ Purchasing movie tickets
➢ Restaurant booking and reservation
➢ Hotel booking and reservation

The Different Areas that Come Under M-commerce

(a) Travel and Ticketing
– convenience is the key.
Mobiles are and will reiterate their time saving devices.
(b) Movie Ticketing
(c) Bill payments
– making payments to utility and service companies.
(d) Merchant Transactions/Retail Transactions
– Mobile and Internet transactions over the Internet is difficult as of now due to low speed
of the Internet.
(e) Money Transfer
– transfer from person to person through a financial intermediary.

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Characteristics Of Mobile Commerce

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Difference between E- Commerce and M-Commerce

The difference between E-commerce and M-commerce is that, E-commerce is limited to

PC users with an internet connection. With M-commerce moving to an SMS platform among
other things, M-commerce is open to almost the entire mobile population.

MOBILE FRAME WORK

A "mobile framework" typically refers to a software framework or development

environment specifically designed to facilitate the creation of mobile applications for smartphones,
tablets, and other mobile devices. These frameworks often provide developers with tools, libraries,
and pre-built components to streamline the development process and ensure compatibility across
different platforms (such as iOS and Android).

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Some popular mobile frameworks include:

1. React Native: Developed by Facebook, React Native allows developers to build mobile
applications using JavaScript and React. It enables developers to create cross-platform
applications with a single codebase.

2. Flutter: Developed by Google, Flutter is an open-source UI software development kit used

to build natively compiled applications for mobile, web, and desktop from a single
codebase. Flutter uses the Dart programming language.

3. Ionic: Ionic is an open-source framework for building cross-platform mobile applications

using web technologies like HTML, CSS, and JavaScript. It utilizes web technologies to
create mobile apps that can be deployed across multiple platforms.

4. Xamarin: Owned by Microsoft, Xamarin allows developers to build cross-platform

mobile applications using C#. It provides tools and libraries to develop apps for iOS,
Android, and Windows platforms.

5. Phone Gap / Apache Cordova: PhoneGap, now known as Apache Cordova, is an open-
source mobile development framework that allows developers to build mobile applications
using web technologies. It wraps web applications in a native container, allowing them to
access device-specific features.

6. Native Script: Developed by Progress Software, NativeScript allows developers to build

native mobile applications using JavaScript, TypeScript, or Angular. It provides direct
access to native APIs and UI components.

MOBILE COMMERCE BUSINESS MODEL

Business model is a very comprehensive topic covering many aspects from all industries. So
naturally, there are a lot of definitions in literature regarding business models (Shafer, Smith, &
Linder, 2005) provide a general view of business model concept according to various authors and
try to give an acceptable definition to the business model idea. They define business models as “a

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 representation of a firm’s underlying core logic and strategic choices for creating and capturing
value within a value network.”
Business models issue by M-commerce
There are a lot of issues in business models. There are some common issues are
▪ Small screen
▪ Limited resources
▪ High speed internet
▪ Limited storage device

These issues are being common, but the major issue for companies is a wireless communication
between customers and vendors. The major task for business is how to provide services.
Advantages of M-commerce in business models
We all know about the E-commerce, which means buying and purchase products online, find
information and communicate with companies. There are some advantages of M-commerce
▪ Time Saving
▪ Cover Long Distance
▪ Better customer deals
▪ Easy to use
▪ Access anytime, anywhere
Attracts new customers
67% customers are using online shopping by using M-commerce and 61% customers can give
prefer to buy products by E-commerce.
In figure 1.3 also show that 88% customers use a laptop, 46% customer use smart phone and
21% customer use tablets
Create new marketing channel
▪ The new advantage of M-commerce is that you create a new marketing channel
Help with traditional sites
▪ You can use shopping website usage on the desktop as well as on your smart phone
Growing marketing
▪ Fastest rising of M-commerce marketers can help customer on 24/7 hour

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 PAYMENT MODEL
In mobile commerce (mCommerce), there are several payment models that businesses and
consumers utilize to facilitate transactions. These payment models vary based on factors such as
convenience, security, and accessibility. Here are some common payment models in mCommerce:

1. Mobile Wallets: Mobile wallets, also known as digital wallets, allow users to store
payment information securely on their mobile devices. Examples include Apple Pay,
Google Pay, Samsung Pay, and PayPal. Users can make purchases in-store, online, or
within apps by simply authorizing the transaction through their mobile device.

2. Carrier Billing: With carrier billing, users can charge purchases directly to their mobile
phone bill. This method is particularly popular for digital goods and services, such as app
purchases or in-app purchases. Users do not need a credit card or bank account linked to
make purchases, which can be convenient, especially in regions where access to traditional
banking services is limited.

3. Mobile Banking: Many banks offer mobile banking apps that allow customers to perform
a variety of financial transactions, including transferring funds, paying bills, and making
purchases. Mobile banking apps often integrate with mobile payment solutions, providing
users with a seamless way to manage their finances and make purchases on the go.

4. Near Field Communication (NFC): NFC technology enables contactless payments by

allowing users to tap their mobile device against a compatible payment terminal to
complete a transaction. Popular examples include Apple Pay and Google Pay, which utilize
NFC technology to enable secure and convenient payments in-store.

5. In-App Purchases: In-app purchases refer to transactions made within mobile

applications. This payment model is commonly used for purchasing digital content, such
as upgrades, subscriptions, or virtual goods, directly within an app. Users can typically
complete these transactions using stored payment information or through integrated
payment gateways.

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 6. QR Code Payments: QR code payments involve scanning a QR code displayed by the
merchant to initiate a payment transaction. Customers can use their mobile device's camera
to scan the QR code and complete the payment using a linked payment method or mobile
wallet. This method is popular in regions where QR code adoption is high.

7. Cryptocurrency Payments: Some mCommerce platforms accept cryptocurrencies as a

form of payment. Users can make purchases using popular cryptocurrencies such as
Bitcoin, Ethereum, or Litecoin through compatible wallets or payment processors.

ADVERTISER MODEL

An advertiser model typically refers to a framework or strategy used by advertisers to

promote their products, services, or brands effectively. This model outlines the various
components and methods that advertisers employ to reach their target audience and achieve their
marketing objectives. Here are some key elements commonly found in an advertiser model:

1. Target Audience Identification: Advertisers define their target audience based on

demographic, psychographic, geographic, and behavioral characteristics. Understanding
the audience helps tailor the advertising message to resonate with their interests and
preferences.

2. Campaign Objectives: Clear objectives are established for each advertising campaign,
whether it's to increase brand awareness, drive sales, generate leads, or promote a specific
product or service.

3. Budget Allocation: Advertisers allocate their budget across different advertising channels
such as TV, radio, print, digital, social media, and outdoor advertising based on factors like
reach, cost, and effectiveness in reaching the target audience.

4. Message Development: Crafting compelling messages that communicate the brand's value
proposition, key benefits, and unique selling points is crucial. Advertisers often conduct
market research and use insights to develop messages that resonate with their audience.

5. Creative Execution: The creative elements of an advertisement, including visuals, copy,

and design, are developed to capture the audience's attention and convey the intended
message effectively. Creativity plays a vital role in making advertisements memorable and
impactful.
6. Media Planning and Buying: Advertisers determine the most suitable media channels and
platforms to reach their target audience and negotiate advertising placements and pricing
with media owners or agencies.

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 7. Measurement and Analytics: Advertisers track and measure the performance of their
advertising campaigns using key performance indicators (KPIs) such as reach, impressions,
clicks, conversions, and return on investment (ROI). Analytics provide valuable insights
into campaign effectiveness and inform future advertising strategies.

8. Optimization and Iteration: Based on performance data and insights, advertisers

continuously optimize their campaigns by adjusting targeting parameters, messaging,
creative elements, and media placements

SHOPPING MODEL

In mobile commerce (mCommerce), the shopping model refers to the framework or structure
through which users browse, select, purchase, and receive goods or services via mobile devices.
Here's a breakdown of a typical shopping model in mCommerce:

Mobile Application or Website: The shopping experience begins with the user accessing a
mobile app or website tailored for smartphones or tablets. These platforms often feature responsive
design to ensure optimal viewing and navigation on smaller screens.

Product Discovery: Users can explore products or services through various means:

Search Functionality: Users can search for specific items using keywords or filters.

Categories and Navigation: Products are organized into categories, facilitating browsing based
on preferences.

Recommendation Systems: AI-driven recommendation engines suggest products based on user

behavior, purchase history, or demographic information.

Product Details: Each product listing includes detailed information such as descriptions, images,
specifications, pricing, and customer reviews. This allows users to make informed purchase
decisions.

Adding to Cart: Users can add desired items to their shopping cart with a single tap. The cart
provides a summary of selected items and allows users to adjust quantities or remove items before
proceeding to checkout.

Checkout Process:

Account Creation/Login: Users may be prompted to create an account or log in to an existing one
to complete the purchase. Guest checkout options are also common for users who prefer not to
create an account.

Shipping and Billing Information: Users provide shipping and billing details, including
addresses and payment methods.

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Order Review: A summary of the order, including items, quantities, prices, and total cost, is
presented for review before finalizing the purchase.

Payment: Secure payment options, such as credit/debit cards, mobile wallets, or digital payment
platforms, are offered to complete the transaction.

Confirmation: Upon successful payment, users receive a confirmation message or email with
order details and an estimated delivery date.

POST-PURCHASE EXPERIENCE:

Order Tracking: Users can track the status of their orders in real-time, receiving notifications
about shipment updates.

Customer Support: Access to customer support services, such as live chat or email, for inquiries,
returns, or assistance with the product.

Feedback and Reviews: Users may be encouraged to leave feedback or reviews regarding their
shopping experience and purchased products, contributing to the improvement of the platform.

Personalization and Retention:

Personalized Recommendations: Continuously refining recommendation algorithms to offer

personalized product suggestions based on user preferences and behavior.

Loyalty Programs and Discounts: Implementing loyalty programs, discounts, or promotions to

incentivize repeat purchases and enhance customer retention.

M- COMMERCE APPLICATION

Mobile commerce, often abbreviated as m-commerce, refers to the buying and selling of goods
and services through wireless handheld devices such as smartphones and tablets. M-commerce
applications have become increasingly popular due to the widespread adoption of mobile devices
and the convenience they offer to consumers. Here are some common types of m-commerce
applications:

Retail Shopping Apps: These are applications provided by retailers to allow customers to browse
and purchase products directly from their mobile devices. Examples include Amazon, eBay, and
Walmart.
Payment Apps: Payment apps facilitate transactions directly from mobile devices. They may
include digital wallets like Apple Pay, Google Pay, or PayPal, allowing users to securely store
payment information and make purchases with a tap or touch.
Mobile Banking Apps: Banking apps enable users to perform various banking tasks such as
checking account balances, transferring funds, paying bills, and even applying for loans, all from
their mobile devices.

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Ticketing and Reservation Apps: These apps allow users to purchase tickets for events (such as
concerts or movies), book flights, reserve hotel rooms, or make restaurant reservations
conveniently from their smartphones.
Digital Wallets: These apps store payment card information securely on a mobile device, allowing
users to make purchases in-store or online without needing to physically present their cards.
Marketplace Apps: Marketplace apps enable users to buy and sell goods or services directly from
other users. Examples include Craigslist, Facebook Marketplace, and various local classified apps.
Food Delivery Apps: Food delivery apps allow users to order food from restaurants and have it
delivered to their location. Popular examples include Uber Eats, DoorDash, and Grubhub.
Subscription Services: These apps offer subscription-based services such as streaming media
(e.g., Netflix, Spotify), digital magazines, or access to exclusive content.
Travel Apps: Travel apps help users plan and book travel arrangements, such as flights, hotels,
rental cars, and activities, all from their mobile devices. Examples include Expedia, Airbnb, and
TripAdvisor.
Augmented Reality (AR) Shopping Apps: AR shopping apps provide users with a virtual try-on
experience, allowing them to see how products will look before making a purchase. This
technology is commonly used in the fashion and furniture industries.

TYPES OF M-COMMERCE SERVICES

PAYMENT M-COMMERCE
Making payments easier and quicker, m-commerce payment services and applications are very
user-friendly. This cashless approach is now popular among everyone. Even vendors are using it.
You don’t even need a wallet now, everything you need for a transaction is in your phone. Every
company is coming up with its idea of cashless transactions. Even customers are inclined towards
finance institutions that allow everything through mobile.

SHOPPING M-COMMERCE
Doing shopping using mobile applications is known as shopping m-commerce. This the most
rapidly growing m-commerce service. Many applications allow you to make a purchase online.
Even social media sites are now a platform for online shopping.

CATALOGS
This is one of the most innovative types of m-commerce. It gave a whole different dimension to
the retail industry. There is an application of lens and spectacles which provides you with a real-
time try-on.

you just have to download the app and you can try any lens from your home. This takes customer
experience to the next level.

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MARKETING
If you have a store, you can get more customers with the help of m-commerce. You can tell your
customers about the sale using an application. You can generate online coupons or lucky draws to
attract more customers.

BOOKINGS
You can buy tickets for almost anything just by using your phone. Want to go to a concert? or
maybe a movie? or an airline ticket for your trip? everything just using your fingertips. Many apps
can help you make any type of booking. It is also an eco-friendly approach.

ENTERTAINMENT
If you don’t have anything to do and you’re bored. M-commerce can be handy in this situation as
well. You have plenty of games which you can play. This also creates an earning opportunity for
game developers.

HEALTH
This is the most astounding service. Certain apps help you to buy medicines online. So you can be
in the safety of your home and can buy medicines. There are even apps that ensure access to
prescriptions without a doctor.

ADVANTAGES OF M-COMMERCE
We have discussed a lot about M-commerce, but now we will talk about its advantages. Things
that made m-commerce a success.

Customer Experience
E-commerce was already very easy and convenient for online shopping. You can compare and
purchase items from different sites, all by sitting in front of your computer.

M-commerce has all the benefits of e-commerce, but in addition to that, we don’t even need a
desktop. All you need is a mobile phone which gives you the freedom to explore every shopping
place.

It made the communication between company and customer much easier.

Contextual Commerce
Certain stories sell both online and offline ways. For example, H&M is having stores both online
and offline. So customers can easily purchase with the platforms they use daily.

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Various Payment Option
With the help of m-commerce, you now have several ways to make a payment. This makes the
entire process even smoother.

MOBILE PORTAL

A mobile portal typically refers to a website or application specifically designed and

optimized for access and use on mobile devices such as smart phones and tablets.

Mobile portals serve as gateways to various services, information, or resources, providing

users with a streamlined and user-friendly experience tailored to the smaller screens and touch
interfaces of mobile devices. They may offer functionalities such as:

• Quick access to essential information or services.

• Mobile-friendly navigation and layout.
• Integration with device features like GPS, camera, or push notifications.
• Personalization options based on user preferences or location.
• Responsive design to adapt to different screen sizes and orientations.
• Seamless login and authentication mechanisms.
• Integration with social media or messaging platforms for sharing or communication
purposes.

MOBILE BANKING, MOBILE PAYMENTS

Mobile banking is a service offered by financial institutions through which customers can conduct
banking activities such as deposits, withdrawals, transfers, and, increasingly, payments directly through a
mobile application.

Mobile banking has increased the convenience and speed with which banking transactions take
place. As smartphone usage has skyrocketed, so too has the use of mobile banking applications.
Mobile banking apps are the third most used type of application on phones in the U.S., coming in
behind only social media and weather applications.

Mobile banking has become a fundamental part of our banking system, with traditional banks
offering a wide slate of mobile products and new fintech companies elbowing their way to a seat
at the table. There are even mobile B2C investment products, which round out the full complement
of financial products available to the public.

MOBILE PAYMENT

A mobile payment is a money payment made for a product or service through a portable electronic device
such as a tablet or cell phone. Mobile payment technology can also be used to send money to friends or
family members, such as with the applications PayPal and Venmo.

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Mobile money and mobile payments, which are occasionally used interchangeably, have opened up
opportunities for financial services software providers to tap previously unprofitable market segments.

Traditional financial institutions do offer mobile payment solutions to their customers. However, there are
mobile payment providers that focus on serving sectors like the unbanked and underbanked, increasing the
ease of access to financial services for people in those demographics.

TYPES OF MOBILE PAYMENTS

1. Mobile browser-based payments
2. In-app mobile payments
3. Mobile or wireless credit card readers
4. Contactless mobile payments or mobile wallets
Mobile phones no longer function exclusively as communication devices. From alarm clocks to
GPS tools to exercise apps, we’ve grown to rely on our smartphones for everything under the sun.
We even use our mobile devices to make everyday purchases at retail shops, on eCommerce sites,
and within apps.

1. Mobile browser-based payments

Similar to desktop-based eCommerce shopping, mobile browser-based payments allow users to

make card-not-present (CNP) purchases with either a credit, debit, or gift card, or even banking
information (ACH) using a smartphone or tablet. Customers can visit a website with their mobile
devices, add the products or services to a shopping cart, and enter payment details into the web
site’s checkout form to complete a purchase – all on their phone or tablet.

2. In-app mobile payments

This type of payment is similar to a mobile browser-based payment; however, instead of navigating
to a website, you can open up the app if that store or business has one. Users benefit from a range
of in-app mobile stores and businesses that allow them to buy select products and services within
closed ecosystems. Simply register your credit, debit, or ACH information once, and then you can
purchase goods, download a book or song, buy a coffee, or pay a bill with a few clicks.

3. Mobile or wireless credit card readers

Rather than rely exclusively on stationary credit card terminals, businesses can turn smartphones
or tablets into point-of-sale systems for on-the-go credit card acceptance by investing in add-on
credit card readers that pair with the mobile device or fit into pre-existing headphone jacks. These
mobile readers allow businesses to swipe, dip, or tap credit cards (just as they would with
countertop terminals) and accept payments on the spot.

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4. Contactless mobile payments or mobile wallets

Bluetooth® and similar technologies have made it possible for shoppers and businesses to
authorize transactions without having to physically swipe or dip any credit or debit cards at all. In
order to complete a purchase, one simply has to wave his or her mobile device across a contactless
reader that wirelessly (and securely) captures the relevant payment information.

Near field communication (NFC) is one of the technologies behind contactless payments. It’s
similar to Bluetooth, but data transfers require closer proximity and offer greater security benefits.
This technology is what powers payments behind mobile wallets like Apple Pay®, Samsung Pay,
and Google Pay™.

MOBILE COMMERCE DEVELOPMENT

➢ The term "mobile commerce," or "m-commerce," describes the exchange of products and
services using wirelessly portable electronic devices like tablets and smartphones. Due to
the increased convenience of performing transactions on-the-go and the broad usage of
mobile devices, mobile commerce has experienced substantial development. The following
are some crucial elements of developing mobile commerce:

Websites that are mobile-friendly: Companies must make sure that their websites are
mobile-friendly in order to give customers using smartphones and tablets a seamless
browsing and shopping experience.

Mobile Apps: To provide their customers with a more customized and efficient shopping
experience, many companies create specialized mobile apps. Push notifications, location-
based services, and other device-specific features can be utilized by mobile apps.

➢ Responsive Design: Designing websites and apps with responsive layouts ensures that
they adapt to different screen sizes and resolutions, providing an optimal viewing and
interaction experience across various devices.

➢ Payment Integration: Mobile commerce platforms must support a variety of payment

methods to accommodate user preferences and increase conversion rates. This includes
integrating popular payment gateways, mobile wallets, and other digital payment solutions.

➢ Security: Security is paramount in mobile commerce development to protect sensitive

customer data and financial transactions. Implementing robust encryption, authentication
mechanisms, and compliance with industry standards such as PCI DSS (Payment Card
Industry Data Security Standard) are essential for safeguarding user information.

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➢ User Experience (UX) Design: Creating intuitive and user-friendly interfaces is crucial
for enhancing the overall shopping experience on mobile devices. This involves optimizing
navigation, minimizing steps in the checkout process, and providing clear calls-to-action
to facilitate smooth transactions.

➢ Performance Optimization: Mobile apps and websites should be optimized for speed and
performance to ensure fast loading times and smooth operation, especially on slower
mobile networks or older devices.

➢ Personalization and Customization: Leveraging data analytics and user insights enables
businesses to personalize the shopping experience based on individual preferences,
purchase history, and behavioral patterns, thereby increasing engagement and driving
sales.

➢ Cross-Channel Integration: Integrating mobile commerce with other channels such as

social media, email marketing, and physical stores enables businesses to create cohesive
omnichannel experiences that seamlessly connect online and offline interactions.

➢ Continuous Improvement: Mobile commerce is constantly evolving, so businesses need

to stay updated with emerging technologies, consumer trends, and industry best practices
to remain competitive and continuously improve their mobile commerce offerings.

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