M-commerce Overview Mobile Commerce is the ability to conduct commerce using a mobile device, such as a mobile phone, a Personal digital assistant (PDA), a smart phone. "Mobile Commerce is any transaction, involving the transfer of ownership or rights to use goods and services, which is initiated and/or completed by using mobile access to computer-mediated networks with the help of an electronic device."
M-commerce Framework It will allow developers and providers to strategize and effectively implement mobile commerce applications.
asses of m-com er ce appl i cat i ons mApplications ExamplesMobile financial applications (MFA) Banking, brokerage service, mobile micro- paymentsMobile advertising Sending user specific and location sensitive advertisements to usersProduct location and shopping (PLS) Locating/ordering certain items from a mobile deviceMobile inventory management (MIM) Location tracking of goods, boxes, troops, and peopleProactive service management (PSM) Transmission of information related to aging (automobile)Wireless business re-engineering Improvement of business services(WBR)Mobile auction, entertainment and Services for a customers toother services buy or sell certain items
Early content and applications have all been geared aroundinformation delivery but as time moves on the accent will be on revenue generation.Entertainment Communications • Music • Short Messaging • Games • Multimedia Messaging • Graphics • Unified Messaging • Video • e-mail • ChatroomsTransactions M- commerce • Video - conferencing • Banking • Broking Information • Shopping • News • Auctions • City guides • Betting • Directory Services • Booking & • Maps reservations • Traffic and weather • Mobile wallet • Corporate information • Mobile purse • Market data
Mobile Payment Most basic and effective idea for m-commerce is mobile payment. Mobile payment or known also as Mobile wallet is an alternative payment method. Instead of paying with cash, cheque or credit cards, a consumer can use a mobile phone to pay for a wide range of services and digital or hard goods. There are four primary models for mobile payments Premium SMS based transactional payments Direct Mobile Billing Mobile web payments (WAP) Contactless NFC (Near Field Communication)
Premium SMS based transactional payments The consumer sends a payment request via an SMS text message or an USSD to a short code and a premium charge is applied to their phone bill or their online wallet. The merchant involved is informed of the payment success and can then release the paid for goods. Direct Mobile Billing The consumer uses the mobile billing option during checkout at an e-commerce site—such as an online gaming site—to make a payment. After two-factor authentication involving a PIN and One-Time-Password, the consumers mobile account is charged for the purchase. Mobile web payments (WAP) The consumer uses web pages displayed or additional applications downloaded and installed on the mobile phone to make a payment. It uses WAP (Wireless Application Protocol) as underlying technology and thus inherits all the advantages and disadvantages of WAP. Contactless NFC (Near Field Communication) Near Field Communication (NFC) is used mostly in paying for purchases made in physical stores or transportation services. A consumer using a special mobile phone equipped with a smartcard waves his/her phone near a reader module. Most transactions do not require authentication, but some require authentication using PIN, before transaction is completed. The payment could be deducted from pre-paid account or charged to mobile or bank account directly.
Payment via Internet Payment Provider WAP GW/Proxy Browsing (negotiation) Merchant MeP GSM Security SSL tunnel User SMS- C IPP Mobile Wallet CC/Bank
PAYMENT VIA INTEGRATED PAYMENT SERVER WAP GW/Proxy Browsing (negotiation) Mobile Commerce Server Merchant GSM Security User SSL tunnel SMS- C ISO8583 Based CP VPP IF CC/Bank Mobile Wallet Voice PrePaid
Mobile payment service provider modelOperator-Centric Model The mobile operator acts independently to deploy mobile payment service. The operator could provide an independent mobile wallet from the user mobile account(airtime). A large deployment of the Operator- Centric Model is severely challenged by the lack of connection to existing payment networks.
Bank-Centric Model A bank deploys mobile payment applications or devices to customers and ensures merchants have the required point-of-sale (POS) acceptance capability. Mobile network operator are used as a simple carrier, they bring their experience to provide Quality of service (QOS) assurance. Collaboration Model This model involves collaboration among banks, mobile operators and a trusted third party. Peer-to-Peer Model The mobile payment service provider acts independently from financial institutions and mobile network operators to provide mobile payment.
Amazon Payments, Inc. is a wholly owned by Amazon.com that provides a means to process transactions online. Launched in 2006, Amazon Payments uses the consumer base of Amazon.com.Checkout by Amazon CBA can manage several aspects of the transaction including order processing, promotional discounts, shipping rates, sales tax calculation and up-selling. Depending upon the needs of the merchant.Amazon Simple Pay ASP differs from CBA in that ASP does not handle additional capabilities associated with order processing such as promotions, tax & shipping, and so on.Amazon PayPhrase It allows customers to check out by typing their PayPhrase and their PIN without having to enter any shipping or credit card information.
PayPal operates in 190 markets, and it manages more than 232 million accounts, more than 100 million of them active. PayPal allows customers to send, receive, and hold funds in 24 currencies worldwide. The PayPal Buyer Protection Policy states that thecustomer may file a buyer complaint within 45 days if they didnot receive an item or if the item they purchased wassignificantly not as described. If the buyer used a creditcard, they might get a refund via chargeback from their credit-card company
Mobile BankingMobile banking is a term used for performing balance checks, accounttransactions, payments, credit applications and other banking transactionsthrough a mobile device such as a mobile phone or Personal Digital Assistant(PDA).Models of branchless banking can be classified into three broad categories: It emerges when a traditional bank uses non-traditional low-cost delivery channels to provide banking services to its existing customers. Ex.ATMs It offers a distinct alternative to conventional branch-based banking in that customer conducts financial transactions at a whole range of retail agents (or through mobile phone) instead of at bank branches or through bank employees. It is where a bank has a limited role in the day-to-day account management.
Mobile Banking ServicesAccount Information Mini-statements and checking of account history Mutual funds Insurance policy management Pension plan management Status on cheque, stop payment on cheque Ordering cheque books Balance checking in the account Recent transactions Blocking of (lost, stolen) cardsPayments, Deposits, Withdrawals, and Transfers Domestic and international fund transfers Micro-payment handling Mobile recharging Commercial payment processing
Bill payment processing Peer to Peer payments Withdrawal at banking agent Deposit at banking agentInvestments Portfolio management services Real-time stock quotes Personalized alerts and notifications on security pricesSupport Check (cheque) book and card requests •ATM LocationContent Services General information such as weather updates, news Loyalty-related offers Location-based services
The Security issues for M-commerce security is to protect information assets in case of accidental or unauthorized disclosure, modification and destruction of information, which will make information unreliable, or hard to handle. . The security problems faced by CMEC(Collaborative Mobile E- Commerce) are mainly reflected in the following aspects: The confidentiality of business information Confidentiality refers to the protection of collaborative enterprise business information from being stolen, visited and other attacks. The integrity of business information Integrity means the ensuring that the collaborative business information has not been tampered with, inserted, rearranged, duplicated, or delayed, and it also includes the avoiding of counterfeit information.
The identification of business information Identification is to confirm the visitor’s identity or the source of news to prevent imitation acts. The security of wireless network transmission Due to the openness of wireless channel and the complexity of wireless environment, the security of wireless network is questionable.
Collaborative database layer Collaborative database layer is mainly used to support the access, sharing, inquiry of data among the whole collaborative enterprise cluster. Therefore, the databases of collaborative enterprise cluster try to keep the same structure, and the database inquiry language used must also be efficient. Application system layer Its main functions include collaborative enterprise management, collaborative product design, online trade platform, collaborative enterprise information sharing, product data management, client relationship management, computer-aided technology. Security wireless network interface This interface is to provide secure wireless technology for mobile users through the security guarantees provided by wireless middleware technology, and interact with the application layer at the same time. Application layer Together with the user interface layer, they provide the information of the web visited for each enterprise to support the collaborative business processes, including browsing information, searching and customization.
Limitations of M-commerce Usability Problem small size of mobile devices (screens, keyboards, etc) limited storage capacity of devices hard to browse sites WAP Limitations Speed Cost Accessibility Cellular radio frequecies = cancer? No conclusive evidence yet could allow for myriad of lawsuits mobile devices may interfere with sensitive medical devices such as pacemakers
Limitations(Conti..) Technical Limitations lack of a standardized security protocol insufficient bandwidth 3G liscenses transmission and power consumption limitations poor reception in tunnels and certain buildings multipath interference, weather, and terrain problems and distance-limited connections Networks Bandwidth Interoperability Cell Range Roaming
Mobile Commerce Trends 2011 Bargain HuntingBargain hunting hasbecome extremelypopular that allow usersto scan product barcodes and discover it’svarious prices at differentretailers. Shoppers aremelding the two worlds ofonline/mobile shoppingwith actual physicalshopping to make surethey get the best prices.
Mobile Ticketing Movie lovers can instantly purchase movie tickets from inside the app. userscan receive show time reminders. Consumers can additionally break down contentand search by films near them, soon-to-be-released movies and by box officewinners.
Marketing Myhabit.com is making fashion deals accessible for shoppers via an iPhone application. The app gives users fashion deals based on their location. users can view the week’s calendar of deals and sign up for sale reminders on specific brands.Myhabit.com includes women’s, men’s and children’s apparel. In particular to the Myhabit app, videos show all sides of clothing and detailed photography tries to recreate the in-store shopping experience for consumers.
References http://www.mobilecommercedaily.com/category/payments http://en.wikipedia.org/wiki/Mobile_Payments#Notes http://jiad.org/article111 https://payments.amazon.com/sdui/sdui/helpTab https://www.paypal.com/in/cgi-bin/helpweb?cmd=_help http://www.peterindia.net/M-CommerceOverview.html http://www.ieee.org/ Zhang Yunyong, Zhang Zhijiang. Principle & Application of Middleware Technology. Tsinghua University Publishing House. 2004 Zhaoyu Liu, Dichao Peng. A Security-Supportive Middleware Architecture for Perva- sive Computing [C]. Dependable, Automatic and Secure Computing 2nd IEEE sym- posium Sept. 29 2006-Oct. 1 2006 Page(s):137-144