Mobile-Commerce

LECTURE 1 & 2 : M-COMMERCE OVERVIEW

Lecture Notes
o Introduction
o History
o The Future of M-Commerce
o M-Commerce (Services andApplications)
o Advantages
o Disadvantages
INTRODUCTION

Commerce E-Commerce
E-Commerce is the purchasing, selling
Is the production process which deals with
and exchanging goods and service over
the exchange of goods and services from
computer networks (internet) through
producer to final consumer
which transaction or terms of sale are
performed Electronically.
 INTRODUCTION
Mobile Commerce:

 The process of making an online transaction with a wireless device such as a tablet or
smartphone.

 A form of e-commerce, mobile commerce first occurred through devices like cell phones and
digital assistant devices, while the advancement of smartphone technology has further
stimulated the mobile commerce market.
 History

 Mobile 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.

 Since the launch of the iPhone, mobile Commerce has moved away from SMS systems and into actual
applications
HOW THE FUTURE OF MOBILE COMMENCE IS
IMPORTANT
HOW THE FUTURE OF MOBILE COMMENCE IS
IMPORTANT
HOW THE FUTURE OF MOBILE COMMENCE IS
IMPORTANT
Overview
Mobile Commerce from the Customer‘ s point of view

 The customer wants to access information, goods and services any time and in any place on his

mobile device.

 He can use his mobile device to purchase tickets for events or public transport, pay for parking,

download content and even order books and CDs.

 He should be offered appropriate payment methods.

Dimensions of mobile commerce
Dimensions of mobile commerce
1. Mobile shopping.

 Mostly similar to ecommerce, but accessible via a mobile device. Mobile shopping is now
possible through mobile optimized websites, dedicated apps, and even social media
platforms.
2. Mobile banking.

 Not too different to online banking, though you may find some transaction types are limited
or restricted on mobile devices. Mobile banking usually involves a dedicated app, though
some banks have started experimenting with the use of chatbots and messaging apps.
 Dimensions of mobile commerce
3. Mobile payments.

 There are so many diverse mobile payment options

 As a business owner, and a user of Big Commerce, your exposure and interest in mobile
commerce would mostly relate to shopping and payments
Services and Applications

Mobile Money Content purchase and

Mobile ticketing Information services
Transfer delivery

Mobile marketing and

Mobile banking Mobile Browsing Mobile Purchase
advertising
Mobile Ticketing

 Mobile Ticketing is the process where the customers can order, pay for, obtain and
validate tickets from any location and at any time using Mobile phones .

 Tickets can be booked and cancelled on the mobile device with the help of simple application
downloads.

 Delivery of tickets to mobile phones can be done in the form of a SMS or by a MMS.
MOBILE
TICKETING
Mobile Tickets can be purchased in a variety of ways including online, via text messaging or in
a secure mobile application.

 Mobile Ticketing is used in many applications like:

1. Airline ticketing
2. Cinema ticketing
3. Railway & Bus ticketing
4. Concert/Event ticketing
5. Consumer voucher distribution
MOBILE
TICKETING
Benefits to the ticket buyer

 Instant delivery of mobile tickets at the time of purchase.

 Individual mobile tickets can be forwarded to a friend.

 Quicker entry with no waiting in lines.

Benefits to the Event organizer

 Reduced will call lines and staffing.

 Guaranteed security, only one entry per barcode.

MOBILE MONEY
TRANSFER

 Mobile Money Transfer refers to payment services which are performed by using a mobile
phone.

 By using this service we can transfer money from one person to other by using a mobile
phone.

Banks have started IMPS - Interbank Mobile Payment Service. It is an interbank

electronic instant mobile money transfer service through mobile phones.
CONTENT PURCHASE AND
DELIVERY

 Mobile content purchase and delivery mainly consists of the sale of call-tones, wallpapers, and
games for mobile phones.

 The convergence of mobile phones, portable audio players, and video players into a single
device is increasing the purchase and delivery of full-length music tracks and video.
INFORMATION SERVICES

A wide variety of information services can be delivered to mobile phone users in much the same
way as it is delivered to PCs. These services include:

 News

 Stock quotes

 Sports scores

 Traffic reporting
 Mobile banking
Banks and other financial institutions use Mobile Commerce to allow their customers to access
account information and make transactions, such as purchasing stocks, remitting money, receive
notifications, transfer money to other banks.

Mobile Banking
Services

Mini-statements and PIN provision, Change

Cash-in, cash-out
checking of account Checking the balance Recent transactions of PIN and reminder
transactions on an ATM
history over the Internet
 Location-based services
 The location of the mobile phone user is an important piece of information used during Mobile
Commerce or M-Commerce transactions.

 Knowing the location of the user allows for location- based services such as:

1. Local discount offers

2. Tracking and monitoring of people

Mobile purchase

 Some merchants provide mobile websites that are customized for the smaller screen and
limited user interface of a mobile device.

 Mobile marketing is highly responsive sort of marketing campaign, especially from brands’
experience point of view.

 Corporations are now using M-Commerce to expand everything from services to marketing and
advertisement.
MOBILE MARKETING

Mobile
Marketing

Mobile Web MMS Audio

SMS advertising Mobile games Mobile videos
Poster advertising Advertisements
 Mobile vouchers, coupons and loyalty cards

 The voucher, coupon, or loyalty card is represented by a virtual token that is sent to the mobile
phone.

 Presenting a mobile phone with one of these tokens at the point of sale allows the customer to
receive the same benefits as another customer who has a loyalty card or other paper
coupon/voucher.
Payment Methods
 Consumers can use many forms of payment in mobile Commerce.

Premium Rate
Telephone Numbers

Payment Direct Mobile Billing

Mobile Wallet
Methods

Macro payment and

Micro payment Services
Premium Rate Telephone Numbers

• Unlike a normal call, part of the call charge is paid to the service provider, thus enabling
businesses to be funded via the calls.

• The services that use Premium Rate Numbers are:

 Directory Enquiries

 Weather Forecasts

 Competition and Voting

 Direct Mobile Billing

• Direct mobile billing, also called direct to bill,

is a method of paying for merchandise by
charging the purchase to a mobile phone
account.

• At the time of checkout, the customer selects the

mobile billing option on a smart phone and follows a
two-factor authentication procedure.
 Direct Mobile Billing
The transaction is entirely secured and does not require any personal or banking information.

Ideal for
 Macro and Micro Payment Services
• Macro payments:

• This kind of payments is used by traditional electronic Commerce and they usually involve
amounts more than US $10.00.

• Payments by credit cards are the most common method for Macro payments.
Macro and Micro Payment Services
 MACRO AND MICRO PAYMENT SERVICES
• Micro payments

 These usually involve amounts less than US $10.00, which are too small to be

economically processed by credit cards.

 The amounts are usually charged to user’s phone bills.

MACRO AND MICRO PAYMENT
SERVICES
Mobile Wallets
A mobile wallet based payment strategy deals with how, where and when the payments can be
accepted and processed using the user’s wallet accounts such as Apple, Google, Samsung and
Capital One Wallet.

Here the users top up their mobile wallet accounts upfront and such mobile
Prepaid wallet accounts are used to make the payments in context of the mobile sales
transactions.

In this case, a user’s mobile wallet account is linked to his or her carrier billing
M- Wallet account. The mobile sales transactions are paid with the user’s mobile wallet
Post-paid
Options account, which in turn is charged to the associated mobile billing account that is
usually paid on a monthly or quarterly basis.

In this mobile wallet strategy, the mobile wallet accounts are linked to user’s
Card linked debit or credit cards. In a mobile sales transaction, with card linked mobile wallet
mobile wallets payment, the final payment is made from the wallet account that is linked to
user’s cards.
Advantages

Advantages of M-Commerce

Instant
Portability Mobility Personalization Localization
connectivity
Disadvantages

Disadvantages of M-Commerce

Small screens of most devices still User interface is often Limited storage capacity of
limit types of file and data transfer difficult to learn how to use devices
Thank You 