STANDARD: 12 | Computer Studies 1

Ch.5 Introduction to
M-Commerce
SCIENCE THEORY [12] PRACTICAL [00]
WEIGHTAGE
COMMERCE THEORY [06] PRACTICAL [00]

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 M-Commerce 2

• Buying and Selling of goods or services through the use of Internet

enabled wireless devices such as a Mobile, Personal Digital Assistant
(PDAs), Smart Phone, Tablet, Palmtop or any mobile device is called
M-Commerce.
• Examples:
• Purchasing airline / movie tickets
• Restaurant / Hotel booking and reservation
• Stock market analysis

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 M-Commerce | Advantages 3

• Provides convenience to the user.

• Do shopping, banking and download media files.
• Reduces transaction cost | Reduces the time to order.
• User does not need to be on the PC or Laptop.
• Streamline business process.
• Provides global reach.
• Conduct business 24 X 7.
• Useful to deliver time critical and emergency information.

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 M-Commerce | Limitations 4

• Limited screen size.

• Limits the types of file and data transfer.
• User interface is less convenient, compared to PC.
• Limited computing power, memory and storage capacity.
• Less secured as compared to wired network.
• Offers limited bandwidth.
• High cost of establishing mobile and wireless broadband.

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 M-Commerce Example 5

• Mobile Banking : Balance, Statement, Transactions etc.

• Mobile Brokerage : Stock market services via mobile.
• Mobile Ticketing : www.irctc.co.in, Username, Password.
• Mobile Auctions : eBay.com, Bidding Process.
• Mobile Purchase : Online Shopping, flipkart.

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 M-Commerce | Applications 6

• Marketing
• Advertising
• Entertainment
• Financial Services
• Information Services
• New Service
• Stock Market
• Sports News
• Financial records
• Traffic information

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 GPS | Location and Search Service 7

• PDAs, Cellular phone and Pocket PC.

• GPS Technology works by using signals from GPS, Cellular and Wi-Fi.
• GPS is the most accurate in determining a mobile device’s position.
• It is based on a worldwide satellite tracking system.
• Triangulation : Locates the device within 500 meters.
• GPS signal is poor, week or blocked, it use cell tower & Wi-Fi.

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 Location based applications 8

• Information or Directory services

• Nearest restaurants, Parking facility,
• Tracking services
• Tracking assets, friends, cars, children
• Emergency services
• Medical ambulance, Search and rescue mission
• Mapping – Creating maps of specific geographical location
• Navigation – Plotting route from one place to another

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 Security Issues in E-Commerce 9

• Confidentiality
• Secrecy of the information
• Unauthorized user cannot read the information
• It is achieved by using cryptography
• Decrypting the message using appropriate key.
• Integrity
• Ensures that the information must not be accidentally or maliciously altered
or tampered in transit.
• Receiver should receive the same message as was sent by the sender.

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 Conti… 10

• Authorization
• Ensures that only authentic users are allowed to use the system.
• Login and Password is one of the way to achieve authentication.
• Non-repudiation
• Sender of the message cannot deny that he/she has sent the message.
• It is usually accomplished via digital signatures or a Trusted Third Party (TTP).

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 Conti… 11

• Malicious code
• Code is one that causes damage to a computer or system.
• Active itself
• Like a virus requiring a user to perform an action.
• As clicking on something or opening an e-mail attachment.
• It can also affect a network, send messages through e-mail and steal
information or cause even more damage by deleting file.

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 Conti… 12

• Sniffing
• Program that uses Internet to record information that passes through a
computer or router in transits from sender or receiver.
• Like tapping the telephone wire and recording the conversation.
• It can read e-mail, login, password, credit card numbers.
• Denial of service attack
• An attack used to shut down a machine or network
• An attacker may be able to prevent the user from accessing e-mail, websites,
online account etc.

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 Conti… 13

• Cyber Vandalism
• Electronic defacing of an existing website page.
• An attacker replaces the website’s original content with his/her own content.
• It is an example of integrity violation.
• Equivalent to placing graffiti on someone's photograph.
• Spoofing
• Spoofing is pretending to be someone you are not.
• Representing a website as authentic when it is actually a fake.

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 Security Measures 14

• Antivirus Software
• Computer program
• Detects, prevent and takes action to remove the malicious code like viruses,
worms and Trojan horses from the infected system.
• It may delete the files and slow down the system or also can damage the
hardware or destroy the entire computer system.
• Most common way system is attacked is through e-mail.

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 Conti… 15

• Firewall
• Companies having their own websites have to control the access to the
network services both inside an outside the company network.
• Device computer / router places between the network and the Internet to
monitor and control the traffic between the company’s local network and the
outside world.
• Digital Certificate
• Digital certificate / Digital ID – proving identify in electronic transactions.
• Third party issues certificates is known as Certification Authority (CA).

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 Conti… 16

• Cryptography
• An art of protecting the information by transforming it into an unreadable
form.
• Encryption is the transformation of normal text or plain text into unreadable
or secret text known as cipher text.
• Secret key is used to encrypt and decrypt a message.
• Secure Socket Layer
• Developed by Netscape.
• Securing web transaction..
• Starts from https:// rather than http://
• VeriSign logo – Security logo.
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 Securing Intellectual Property 17

• Intellectual Properties….
• Books
• Software
• Music
• Video
• Copyrights
• Trademarks
• Web pages

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 Copyright 18

• Copyright provides the author with a tool to protect his/her original

work from being used or taken by other without permission.
• Applicable to books, software programs and articles.
• Copyright matter cannot be used freely.
• Very difficult to protect Intellectual property
• Copying contents from the website also violates copyright laws.

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 Trademark 19

• Specific logo, mark, word, symbol, design, phrase, image

• Used by an individuals or a company to distinguish a product or
service from that of other in the market.
• Trademark symbols :
• TM : Trade Mark
• SM : Service Mark
• ®: Registered

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 Domain name disputes 20

• Competition over domain names is another legal issue.

• Earlier, the domain names were given on first come first serve basis.
• Thus people would register domain names that were not is use but
would be of importance, later on such domain names were sold to
concerned company at a very high price.
• Mislead the consumers who generally make typographical errors
while entering a URL.

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 Steganography 21

• Steganography : process of hiding information within other

information.
• The information in the files if not protected can be used for any
malicious purpose.
• It works by replacing unused data in computer files such as images,
sound or text with invisible information.
• This hidden information can be text, cipher text, image.

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 Digital Watermarking 22

• Digital code inserted into a digital image, audio or video file which can
identify the file’s copyright information.
• Allows hiding information in a totally invisible manner.
• In digital world, artist can watermark their work by hiding their name
within the image.
• Big problem of unauthorized mp3 audio distribution.
• A visible digital watermark can be added with GIMP.

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 Payment Option : Credit card 23

• Most popular and widely accepted method of payment.

• Issuing banks issued it. Example : MasterCard ® Visa ®
• Acquiring bank – online authorization & payment process
• Four parties:
Customer | Merchant | Issuing Bank | Acquiring Bank
• Online payment’s 2 parts
Authorization | Settlement
• For online transactions secure : Secure Electronic Transfer

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 Credit Card : Advantages | Limitations 24

• Gives flexibility, Customer do not have to carry of cash.

• Online and offline payment is possible.
• Keeps record through bank statement.
• Allows customers to purchase goods even when they do not have the cash
in bank account.

• unsuitable for very small and very large payments.

• Security issues.
• Customers tend to overspend using credit card.
• Problems arise in case lost or stolen card.
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 Payment Option : Debit Card 25

• Looks like credit card but works differently.

• Transfers fund directly from the customer’s bank account to the
merchant.
• Amount is immediately deducted from the bank account of the
consumer.
• Keep consumer purchases under a limit.
• Do not allow him to exceed beyond his/her budget.

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 Payment Option : Smart Card 26

• Look just like credit cards but are different as they have microchip
embedded in their surface.
• It contains user’s private information, a/c information, health
insurance information, private key etc.
• Store 100 times more information than the normal cards.
• Information stored in encrypted form.
• Smart card readers are available for retail outlets.

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 Payment Option : Charge Card 27

• Form of payment mechanism.

• Customer can pay through the card to the vendor.
• Does not carry any spending limit.
• Customer has to pay the total amount used at the end of the billing
period.
• If the total amount is not paid back then the customer has to pay a
late fee.

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 Payment Option : Net Banking 28

• Popular option : Net Banking or Online Banking.

• Used by customers who have bank accounts.
• Possible online purchase and payment.
• Bank provides the net banking username and password.
• After the transaction, transfer the amount from user’s account to the
merchant’s account.
• Safer than credit card.

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 Payment Option : EFT 29

• Transferring money from one bank account to another electronically

is called Electronic Fund Transfer (EFT).
• Safe, secure, efficient, less expensive than paper check payment and
collection.
• Examples :
• Amongst various banks around the world.
• Payment of tuition fees using an ATM.
• Deposit of employee’s salaries in their account.

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 Payment Option : E-Wallet 30

• E-Wallet is an electronic cards for making secure online payments

towards a merchant.
• Some merchants solve the problem to give the information for every
time of purchasing, they store the information on their servers for
later use.
• Many banks, online grocery stores, telecom services provide e-wallet
services.

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 Payment Option - RuPay 31

• RuPay – Rupee and Payment.

• Launched by National Payment Corporation Of India (NPCI).
• Used the same way as use the credit card and debit card.
• Currently, as there is no domestic card Indian banks have to tie with
MasterCard and Visa.
• RuPay cards, all the transactions will be processed within India.

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 32

Thank You.
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