Mobile commerce has grown significantly since the early 1990s with the introduction of smartphones and increasing internet access via mobile devices. Some key trends highlighted in the document include the rise in mobile shopping, with forecasts that 15% of holiday shoppers will buy from their phones in 2011 compared to less than 1% in 2009. Many consumers now use their smartphones to research products, check prices and reviews, and make purchases. The future of mobile commerce looks promising, with forecasts of over $100 billion in mobile ticketing transactions and $119 billion spent via mobile phones by 2015.

1. Mobile

3. History
• 1992 – IBM introduces Simon (1st “smart” phone)
• 1997 – Finland, Coke machines equipped with ability to accept
payment via mobile phone.
– Merita Bank introduced first banking services for mobile devices.
– Introduction of mobile ring tones
• 2000 – mobile ticketing in Austria and paying for parking in Norway
• 2001 – Kyocera 6035 by Palm, Inc. and first 3G network
• 2002 – first publications on Mobile commerce
• 2007 – Apple iPhone

4. By 2011

5. Smartphone Market Share

6. Some Mobile Statistics
• The percentage of shoppers buying from their mobile phones is expected to rise to 15% in
November, compared to 4.5% in last year’s holiday season, and less than 1% in 2009. In October,
9.6% of online shoppers made purchases through their mobile devices, up from 3.4% a year earlier.
(IBM Coremetrics Forecast, 2011)
• 67% of consumers will use their smartphones to find store locations, 59% to compare prices, 51% to
obtain product information, 46% to check product availability, 45% to read reviews, 45% to shop
online, 41% to find and use coupons, 40% to scan bar codes, and 35% to access social media
(Source: Deloitte’s 2011 Annual Holiday Survey)
• 27% of smartphone owners will use their devices for holiday shopping this year (Source: Deloitte’s
2011 Annual Holiday Survey)
• More than 60 percent of mobile buyers will make mobile purchases while at home (Source: Ipsos
and PayPal Survey, 2011)
• At least 46 percent of consumers plan to make mobile purchases this holiday season (Source: Ipsos
and PayPal Survey, 2011)
• 53% of the “on-the-go” U.S. audience is willing to exchange their location in exchange for more
relevant content and better information, including mobile deals (Source: JiWire, 2011)
• More than 33.3 million U.S. consumers already engage in shopping-related activities on their mobile
phones, 7%, or 2.3 million, of those consumers have made a purchase on their devices, the report
finds (Source: research firm Experian Simmons, 2011 Mobile Consumer Report)

7. More Mobile Stats
• 24% of U.S. adult online iPhone users and 21% of Android users have used a shopping application
in the past three months (Source: Forrester, 2011)
• Nearly half of consumers (47%) have accessed customer reviews in store using their mobile device
with men (55%) more likely to access these reviews in store than women (39%) (Source: Shop.org,
comScore and Social Shopping Labs, 2011)
• 41% of smartphone owners have made a purchase from their mobile phone. Of those, 16% bought
apparel; 15% food and beverages; 11% toys and games; 11% electronics; 8% home goods; 4%
sporting goods; 4% books; 3% jewelry; and 8% other products (Source: Chadwick Martin Bailey,
2011)
• 46 percent of consumers have used their phone to get product information while in a store (Source:
Briabe Media, 2011)
• 56 percent of people believe mobile can make the shopping experience more enjoyable (Source:
Lightspeed Research, 2011)
• 58% of mobile shoppers are age 18-34 and 34% of mobile shoppers make $100,000 or more a year
(Source: comScore/Millennial Media Mobile Retail Study, 2011)
• 13.1 million consumers access retail content via mobile phones with 8.2 million of those visiting
mobile commerce websites (Source: comScore/Millennial Media Mobile Retail Study, 2011)
• 67 percent of retailers see value of having customers use their smartphones within the store and 41
percent said they perceive a lot of value in mobile in-store (Source: RSR Research, 2011)

8. Unique Features and
Advantages
• Ubiquitous
– Easier information access in real-time
– Independent of user’s location
• Convenient
– Data is always at hand
– Continues to get easier to use
• Accessible
– Contacted anywhere at any time
• Personalized
– Information customized for a user
• Localized
– Knowing the user’s location and matching services to that
location

9. Disadvantages
• Usability
– Small screens and keypads limit messages
and browsing of information
• Technology
– Limited computing power
– Limited bandwidth
– Limited data transfer capabilities
• Security and privacy concerns

10. Technology Components
• Cellular and WiFi mobile devices
• Operating systems and application
development
• Wireless access technologies
– Long range and short range
• Location-sensing technology
– Geofencing and micro-geofencing
• Content delivery protocols
• Middleware and Back-end architecture

11. Wireless Access
Technologies
• Long-range
– 1G or "first generation“, available in the 1980's,
analog, bandwidth and simultaneous user capacity
was limited.
– 2G - supported digital messaging (e.g. SMS, and
email).
– 3G- increase in speed over 2G, support for
multimedia.
– 4G - provide an entirely IP-based mobile network
increasing speed, especially with multimedia.

12. Wireless Access Technologies
• Short-range
– WiFi – family of IEEE 802.11 IP networking
– Bluetooth – wireless personal area networks
– RFID – Radio frequency identification

13. Location-sensing technology
• Geofencing technology
– A virtual perimeter around a
particular location using a
location-based service such
as GPS
– GPS receivers first added to
mobile phones around 2006
– Within 2-15 Meter accuracy
outdoors

14. Location-sensing technology
• Micro-geofencing technology
– Indoor real-time location sensing
– Accuracy to within 3 feet
– WiFi or Bluetooth enabled

15. Content Delivery Protocols
• SMS- Short Message Service
 Supports text messages up to 160 characters
 Usage in business
 Example: retail and restaurant discounts when
users text to company phone number
 MMS- Multimedia Message Service
 Video, Images and Audio
 WAP – Wireless Access Protocol
 Uses a WAP browser and Wireless Markup
Language (WML)

16. Middleware and Back-end
• Similar to e-commerce architecture
• Web, Application processing and DB
servers
• SMS and WAP Gateways

17. Overview of a Wireless Network
A “wireless” network is largely wired
Access Network Core Networks
PSTN
BTS
Internet
BSC MSC
BTS
Other
Nets

18. Overview – The
COmponents
• Access Side
– BTS – Base Transceiver Station
• The only wireless hardware in the network
• The radio frequency portion of the voice/data path
– BSC – Base Station Controller
• Handles the traffic/signaling between the mobile
device and the core switching side
• Core Network Side
– MSC – Mobile Switching Center
• Responsible for the routing of traffic and providing
services for the mobile device-voice, data, fax,
SMS, call forwarding, voice mail, etc.
– PSTN – Public Switched Telephone Network
• Network of the world's circuit-switched telephone
networks, much like the Internet is the network of
the world's packet-switched networks

19. M-Commerce Architecture

20. Business-to-Consumer
Applications
• Mobile Ticketing
• Information Services
• Travel and Leisure
• Mobile Entertainment
• Healthcare
• Retail and Restaurants – coupons, bargain
hunting, auctions
• Banking and Financial Services
• Payment
• Mobile Marketing and Advertising

21. “Apps”
• Now more free apps available for Google's mobile OS than the iPhone, at 134,342 to 121,845.
• There are a few things to consider here:
• with free iPad-only apps, the total number of free iOS apps increases to 132,239.
•Apple's has a rigorous vetting process, which has probably played a role in its numeric slippage
• this report doesn't highlight things like
•legality,
•Repetition
•the overall number of apps dedicated to making farting noises.
• Apple has a lot more premium apps, giving it the overall lead at 333,124 to 206,143
• between Android's rapid growth iOS's relative stagnation, expect Google to take the top spot in five months
Source: Netherlands-based mobile analytics group Distimo

22. Apps

23. Mobile Ticketing
• EBay’s Stub Hub
– Consumers can buy and sell tickets to sports, music and theatre
events via an Android application
• Fandango
– consumers can buy, cancel or enquire about availability of tickets
directly on the mobile devices.
Mobile ticketing
transactions are
forecast to exceed
$100 billion

24. Information services
• Companies are deploying
applications to allow consumers
to gain access to information
from a wide spectrum of sources
which are then conveniently
delivered to mobile phone users.
• Some of these services include
news, stock prices, weather,
fashion, book reviews, sports,
finance, entertainment news etc.

25. Travel and Leisure
• American Airlines -
book flight and keep up
to date with travel
information.
• Moabite is offering a
wide range of options
for consumers that are
looking to book hotel
rooms via their mobile
devices.

26. Entertainment: Content
purchase and delivery
• MobiTV Inc is a global
television and digital radio
service provider for mobile
phone users.
• Redbox – find a movie,
select a location, reserve

27. Healthcare
• Mobisante - smartphone-based ultrasound
system dubbed “MobiUS.
• Improve patient care by providing increased
accessibility to information and services.
• Physicians order prescriptions, look up
patient data and health information.
• Similarly, there are applications for tracking
and inventory for healthcare industry.

28. Mobile coupons/loyalty cards
• Groupon – browse deals,
purchase, senses your
location, redemption
• Present coupon or
voucher via the mobile
device at the time of the
transaction
• Best Buy – scan loyalty
card bar card from phone

29. Retail sales/online catalogs
• Many companies have mobile
applications for selling merchandise via
mobile devices
• Companies have even provided access to
the entire catalogs for the consumers to
allow for easy access to shopping
anytime and anywhere.
• Retail sales on mobile devices is
increasing everyday.

30. Restaurants and Food
Services
• Five Guys Burgers & Fries - mobile
ordering application
• Domino’s Pizza - ordering application
• Yellow Pages - local search experience
– access to information about a variety of food
choices merged with coupons and special
deals
• Urbanspoon and Yelp

31. Mobile banking, tax and
financial services
• 13.2 million people during April, 2010
– 70 percent increase over a year ago.
• PNC Bank – view balances and transactions, move money
between accounts, pay bills
• Merrill Lynch – view portfolio, trade stocks and mutual
funds, track market news
• H&R Block – tax advise, estimate refund, checklists

32. Marketing and advertising
• Glamour & Gap
– Styleite - reality show
for the iPad
– Retailer’s new spring
collection featured
– Readers can buy via
the application

33. Bargain Hunting
• Price Grabber - consumers set
price alerts and check local
sources
– “Smart Shopping. Anytime,
Anywhere!”

34. Bar-code scanning
• RedLaser and ShopSaavy
 iPhone and Android scanning application
 Users can scan bar codes and QR codes
 Interfaces with TheFind.com - determine best
price
 Has been downloaded 8 million times to date

35. Payment
• Paypal
• Bump
• Square
• Visa

36. Square Up

37. Privacy and Security Issues
• Privacy concerns
 E-commerce targeted marketing historically possible
via cookies
 M-commerce takes this to new level with GPS tracking
 Concerning: even travel patterns are analyzed by marketing
departments
 Best practice for corporations to email their privacy policy to
consumers
• Security concerns
 Potential for an attacker to intercept request in order to
obtain location coordinates, or other personal data
 Importance of encryption, usage of certificates

38. Future Trends
• By 2015, shoppers will spend about $119 billion
on goods and services bought via their mobile
phones
– ABI Research released in 2010
• By 2014, the collective worldwide value of
payment transactions via mobile devices would
quadruple from $170 million to $630 billion
– Juniper Research estimates