The document provides an overview of mobile commerce (m-commerce), highlighting its definition, advantages, and the technological evolution that drives its proliferation. It compares m-commerce with e-commerce, discusses the strengths and weaknesses of m-commerce, and details emerging applications and payment methods. The document also outlines security concerns, implementation strategies, and the growing significance of m-commerce in connecting businesses with consumers through mobile devices.

1. REAL-TIME MOBILE COMMERCE
R.K. SAHOO
Would you buy gourmet foods, your valentine gifts ,luxury goods and
accessories using your mobile devices anytime, anywhere, in a safe
and convenient way?

2. WHAT IS MOBILE COMMERCE?
Any transaction with a business value that is conducted
via a mobile telecommunications network is referred to
as mobile commerce.
More precisely ,M-commerce is the emerging
applications and services people can access from their
internet enabled mobile devices such as
smartphones,PDAs,ipads,and laptops.
Mobile commerce has enabled people now to
connect ,inform, interact and influence one another
on a mobile platform anytime and anywhere.
The main advantages of mobile commerce are convenience, instant connectivity, no prior knowledge of computers, no
software installation or upgradation.
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3. MAIN DRIVERS OF M-COMMERCE
TECHNOLOGY
Proliferation of mobile devices such as mobile phones,PDAs,ipads,and
tablet pcs.
Convergence of mobile telephone networks and the internet.
Transition from 2nd generation(2G) to 3rd and 4th generations(3G & 4G)
telecommunication technologies.
Growing customer demand.
Evolution of a new value chain.
Emergence of highly personalized, location sensitive and context
specific applications.
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4. DIFFERENCE BETWEEN
M-COMMERCE AND E-COMMERCE
Technologically speaking m-commerce is an offshoot of
e-commerce and now only 8% of all e-commerce transactions is being
done through M –commerce.
E-commerce involves transaction on the internet but with
m-commerce we enjoy the mobility feature without any physical
connectivity to internet.
Users pay little higher cost for airtime as opposed to free internet
access in e-commerce.
In m-commerce the services are usually delivered to a specific
customer in a specific location whereas in e-commerce ,the services
are accessible globally via the internet.
In comparison to e-commerce, the m-commerce applications are
rather simple, more personalized and time sensitive.
M-commerce is more effective as a marketing and advertising
medium than the e-commerce due to mobility and portability of mobile
devices.
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5. EMERGENCE OF MOBILE COMMERCE
Birth of mobile commerce was in 1997 when the mobile phone
enabled Coca-Cola vending machines were installed in Finland
and the machine accepted payment via SMS text messages.
In 1998 the first sales of downloadable ringtones were made
possible in Finland by a company Radiolinja.
In 1999, a mobile platform for mobile commerce was launched in
Philippines (Smart money) .
Currently Australia is offering train ticketing via the mobile
devices.
Japan offers mobile purchase of airline tickets.
With pervasive uses of mobile devices ,mobile commerce has
become an important technological tool to reach out to
customers in a more effective way than ever before.
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6. SWOT ANALYSIS
STRENGTHS WEAKNESSES
Portability and mobility features Low bandwidth.
of mobile devices. Poor reliability.
Ease of use & instant Transaction security concerns.
connectivity.
High customer satisfaction and High cost of MMS.
loyalty. Quality of service( QoS).
.
OPPORTUNITIES THREATS
New & enhanced m-
commerce applications . Personal privacy protection.
Mobile banking. Constraints with mobile devices.
Mobile ticketing. Authentication, and confidentiality.
Mobile payments. Security of payment transactions.
Advertising & marketing. Information disclosure.
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7. BENEFITS OF MOBILE COMMERCE
Improved human performance.
Fast inventory turnover.
Reduction in cost of logistics.
Increased productivity .
Efficient collaboration.
Faster and accurate communication and
information exchange.
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8. EMERGING M-COMMERCE LIFESTYLE
Mobile banking and trading using a PDA.
Telematics applications on vehicles.
GPS integration in vehicles for finding maps and
directions.
Logistics fleet management.
Instant messaging and SMS about special discount
offers ,coupons, and loyalty cards from preferred
retailers.
Downloading mobile entertainment contents such as
MP3 music files, wallpapers, ringtones and games.
Buying a movie ticket or airline ticket while on the go
using wireless application protocol.
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9. BUILDING BLOCKS OF MOBILE COMMERCE
IDENTIFICATION KEYS : Numeric codes used to identify objects.
DATA CARRIERS: Physical representation that carries the
identification keys such as bar code or RFID.
MOBILE DEVICES: They are able to capture data from the data
carrier.
NETWORK PROVIDERS: Network provider and technologies make
it possible to exchange data across the network.
INFORMATION PROVIDERS: Provide information process
functionality.
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10. BASIC MULTIPLEXING SCHEMES USED IN
MOBILE COMMUNICATION
Multiplexing enables users to share a communication medium with
minimum or no interference and generally aims at maximizing the
number of users that can be accommodated at the same time.
Space Division Multiplexing (SDM).
Frequency Division Multiplexing (FDM).
Time Division Multiplexing (TDM).
Code Division Multiplexing (CDM).
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11. BASIC MULTIPLEXING SCHEMES
SDM: SDM involves separating users based on their location.
FDM: It partitions the available spectrum in nonoverlapping
frequency bands, allowing multiple users , all possibly at the
same location, to be concurrently allocated channels with
different frequency bands.
TDM: This allows multiple users to share a given frequency
band as long as they use it at different times .
CDM: It is a relatively new multiplexing scheme that involves
assigning different codes to different channels .By properly
selecting codes, it is possible for multiple channels to coexist in
space, time and frequency without interfering with one
another.
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12. WHY TRANSITION TO 3G TECHNOLOGY?
2G networks employ GSM technology (9.6 Kbps) whereas
3G network employs GPRS(General Packet Radio Services)
technology. In comparison with GSM ,GPRS offers a number
of distinct advantages :
Always-on connectivity.
More efficient capacity utilization.
More flexible billing options.
Faster data rates.
Universal roaming.
The overall 3G landscape is significantly simpler.
Essentially there are 3 emerging standards.
i) WCDMA/UMTS ( Data rates 2 Mbps)
ii) CDMA 2000. (Data rates 2 Mbps)
iii) TMDA-EDGE.( Data rates 2 Mbps).
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13. REVENUE DRIVERS FOR
M-COMMERCE
Revenue from e-commerce portals.
Revenue from short messaging services(SMS).
Revenue from expansion of new customer base.
Revenue from wireless advertizing.
Revenue from subscription based services.
Revenue sharing between wireless network
operators.
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14. MOBILE TECHNOLOGY APPLICATIONS
By providing location specific information such as driving
directions, maps, and physical address to customers.
Providing time sensitive information such as stock alerts
travel alerts, news alerts and weather alerts to customers.
Mobile entertainment solutions such as games, contents
and ringtones.
Convenient life style solutions such as information about
upcoming events, hot news, discount offers, coupons via
the mobile medium.
Direct connection to targeted customers through text
messages and text alerts.
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15. MOBILE PAYMENTS
Consumers can use a mobile phone to pay for a wide range of services and digital goods
such as ringtones,music,wallpapers and hard goods like books,magazines,tickets etc.
4 Primary models for mobile payments
1. SMS based transactional payments. Costumer sends a payment request via an SMS text
message and a premium charge is applied to their mobile wallet.
2. Direct mobile billing. Consumer uses the mobile billing option during checkout at an
ecommerce site to make a payment and this payment method bypasses the use of
credit/debit cards.
3. Mobile web payments. This method uses WAP as underlying technology and thus
inherits all the benefits like follow-on sales, ease of use and high customer
satisfaction.
4. Contactless near field communication(NFC):A consumer uses a special mobile phone
equipped with a smart card near a reader module and most transactions do not
require authentication and the payment could be deducted from prepaid account or
bank account directly.
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16. POINTS TO CONSIDER FOR MOBILE
TECHNOLOGY IMPLEMENTATION
Define your business objectives and value drivers.
Identify the benefits to your customers.
Closely follow the actions of competitors in mobile space .
Observe the processes to define the gaps and
opportunities.
Identify an organization that would partner with you in
your mobile commerce endeavor.
Use mobile applications to bridge the gaps and realize
the opportunities.
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17. APPLICATIONS OF M-COMMERCE IN
CORPORATIONS
Mobile Enterprise Resource Planning: It helps in inventory status check, order entry, and
order tracking for customers.
Location based Corporate applications: Location based cargo and asset tracking,
location based sales force dispatch.
Mobile CRM: Real time quotes at the client site, communication and team working tools and
customer information.
Customized Solutions: For recruitment, travel reservations and salary information.
Supply Chain management:Key suppliers,manfacturers and retailers share the information
that optimizes the time to market of products and reduces the costs.
Remote Control: Mobile remote control can be used in corporation to decrease operational
costs, provide security and enhance customer service.
Mobile self service: It ‘s an electronic way of handling various corporate duties such as
updating personal information in the corporate database,adderess and emergency contacts.
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18. REAL -LIFE MOBILE COMMERCE APPLICATIONS
Shopping: Edmund .com is a Santa Monica ,California based company
that offers online shopping comparison service for car buyers using
mobile phones.
Ticketing and reservations: The decision to go to movies ,concerts
can be made while on the move or buying airline tickets from the mobile
phones. Hotelguide.com: The WAP version of Hotelguide.com enables
customers to look for hotel information using a mobile handset.
Ticketmaster and City search offers a mobile extension for the existing
web services.
Entertainment: Samsung Electronics has launched a mobile phone with a
built-in MP3 player in Korea.
Financial services: Internet based stock brokering using WAP service.
Nokia and Visa Inc. are developing electronic mobile payment services
to enable secure mobile payments using dual-slot mobile phones with
chip cards.
Healthcare: Mobile Nurse is a software in handheld devices that enables
nurses to access the patient records, insurance information, hospital
inventory. Remote patient monitoring system(RPMS) in which a patient’s
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vital statistics such as EKG,pulse,heart rate ,blood pressure are captured

19. MOBILE LOCATION SERVICES
Mobile location services are the services that integrate both positional and spatial
analysis tools to deliver consumer applications on a mobile device .
Location based service applications include :
Navigation, driving directions and real- time traffic information .
Emergency assistance.
Concierge and travel services.
Location based marketing and advertizing.
Location based billing.
Dispatch and delivery route optimization.
Fleet management, workforce management, and individual tracking.
Security and theft control.
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20. LOCATION BASED MOBILE SOLUTIONS USING
GPS TECHNOLOGY
TELEMATICS services use wireless data and voice system in vehicles in combination with
GPS technology to obtain driving directions, and track location in order to obtain roadside
assistance in case of emergency. Ford Motor , has new cars and trucks with telematics
systems that includes applications like emergency roadside assistance, stolen vehicle
tracking ,remote door lock and concierge services.
Mobile network Internet
Satellite
Location coordinates
are sent to internet
using a mobile Servers
network
Built in GPS
system points Response combining
Location of a car location and content
using a satellite Is generated dynamically.
[LOCATION BASED TELEMATIC SOLUTIONS USING GPS
TECHNOLOGY TO LOCATE A VEHICLE.]
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21. MOBILE BANKING & TRADING
Many wireless communication service providers such as AT &T ,Verizon, Sprint, and
T mobile are providing wireless banking services to their customers from mobile
phones.
Customers can access the bank account, fund transfers, PIN changes, financial
news, bill payments ,ATM and branch locations from their mobile phones.
Alltel’s wireless banking solutions are interfaced through Open Financial Exchange
(OFX),Interactive Financial Exchange(IFX) and WAP gateways to customers mobile
devices.
Schwab PocketBroker service provides access to Schwab trading account,realtime
stock quotes and news, stock performance alerts, a list view and the use of wireless
web portal using a palm organizer.
Morgan Stanley Dean Witter TradeRunner is a new interactive wireless trading
system that is connected with NYSE,NASDAQ,AMEX and OPRA and provides
wireless trading capabilities for equities,options and mutual funds.
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22. OVERVIEW OF MOBILE SECURITY
PKI (Public Key Infrastructure) is the only technology that provides the key elements of
authentication, confidentiality, data integrity and nonrepudiation, which are of primary importance
in security of mobile commerce.
Main components of wireless PKI :
A registration authority(RA) that defines who gets the certificate.
A certification authority(CA) that actually generates and issues the digital certificate.
An end entity application (EA)that runs in the WAP device on WIM card.
A directory to store certificates so that they can be accessed on demand.
PKI portal that interacts with CA over the wired network and translates requests made
by the WAP client to the RA portion.
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23. TYPICAL WIRELESS PKI ARCHITECTURE
CERTIFICATION
AUTHORITY
INTERNET
SSL
CERTIFICATE
WTLS
CERTIFICATE
M-COMMERCE SERVER
RA/PKI PORTAL
MOBILE PHONES
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24. BUILDING BLOCKS OF SECURITY IN
MOBILE COMMERCE
Authentication: Who you are?
Authorization: What you are allowed to do ?
Integrity: If the information somehow get tampered , this tampering can be
detected.
Confidentiality: The data in transit between two communicating parties
cannot be made available to any third parties.
Nonrepudiation: The originator of a message cannot claim not to have sent
a given message.
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25. USER AUTHENTICATION IN MOBILE
COMMERCE
Knowledge based Authentication:
Something the user already knows for interaction with the mobile
device (e.g. password & PINs).
Biometrics based Authentication:
Personality traits of users such as Iris scan pattern or voice
recognition pattern is recognized by the device for authentication.
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26. THREATS TO MOBILE NETWORK SECURITY
Spoofing: Publishing the IP address of a site instead of a legitimate URL in order to
trick people or by typing the URL, so that the client gets routed to an imposter ‘s site.
Sniffing: The ability of a hacker to monitor the traffic as it crosses the network
involving both clients and server .
DoS( Denial of Service) : Sending numerous dummy requests to the server in
order to keep it busy so that legitimate transactions can not get through.
Information Disclosure: The attacker is able to view an individual user’s private
data such as date of birth and social security number etc.
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27. MAIN COMPONENTS IN THE MOBILE
COMMERCE VALUE CHAIN
• NETWORK
1
• M-COMMERCE TECHNOLOGY
2
• CONTENT
3
• INTERFACE
4
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28. EMERGING MOBILE TECHNOLOGIES
Blue tooth: Allows users to make ad hoc wireless connections between
mobile phones, desktop, or notebook computers without any cable.
Radio Frequency Identification(RFID):
Wireless Broadband (WiMax).
Mobile IP .
IP v6.
Java Card(Smart card with Java framework).
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29. PLAYERS IN M-COMMERCE VALUE CHAIN
Infrastructure equipment vendors.
Software vendors.
Content providers.
Content aggregators.
Mobile network operators.
Mobile portals.
Third party billing providers.
Mobile device manufacturers.
Wireless Application Service Provider(WASP).
Location information brokers.
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30. US M-COMMERCE REVENUES
SOURCE: CODA RESEARCH CONSULTANCY
25
IN $BILLIONS
REVENUE
20
15
23.8
10 17.5
11.7
5 7.4
2.4 4.4
1.2
0
2009 2010 2011 2012 2013 2014 2015
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31. US MOBILE BUYERS IN 2010
(% of Respondents)
SOURCE:CODA RESEARCH CONSULTANCY
Jewelry & watches
Computers
Clothing
Books
Consumer Electronics
Digital contents
0% 10% 20% 30% 40% 50% 60% 70%
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32. EBAY IN M-COMMERCE
In 2012, e-Bay expects to do $ 8 billion in mobile commerce retail
volume, and its electronic payments system(PayPal) expects to
process $ 7 billion in mobile payment volume.
Source : Reuters.
e-Bay ,a global leader in mobile commerce with its own suites of
mobile applications such as e-Bay-Core, Red-Laser-3.0 and
ImageSwatch has partnered with carriers and merchants to build a
new retail ecosystem.
e-Bay has partnered with Three.uk.co to deliver mobile devices
preloaded with e-Bay apps thereby bringing a whole new world of
experience to customers.
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33. CHECKLIST FOR FAIR MOBILE
COMMERCE
Copyright issues: Pay attention to and protect the
original works of authorship over the wireless network.
Trademark: Do not infringe upon the trademarks, logos
and watchwords of other companies.
Rights of Privacy: Consider always the personal privacy
in business matters as a topmost priority.
Headlines: Be truthful about writing headlines about
products and services.
Contractual rights: Do not ignore any violation of
contracts written or implied.
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34. CONCLUDING THOUGHTS
A new paradigm in retail industry has emerged out of mobile- commerce to meet the
growing demands of customers .
Mobile service providers should consider how they can create a cohesive, cross-
channel customer experience to meet the needs of each customer segment.
Consumer trust is lifeblood of mobile commerce and in order to win the consumer trust
,legal aspects of all transactions must be maintained.
The ultimate lines of difference between in-store and mobile commerce are getting
blurred with the advent of mobile technologies.
With a slew of novel applications and services yet to be invented ,mobile commerce
would get significant traction in terms of popularity and convenience in global
marketing and advertising industry.
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35. MOBILE PAYMENT TECHNOLOGIES
Near Field Communications(NFC):
NFC technology allows the consumers to use a mobile phone equipped with a
smart card near point- of- sale readers and the payment could be deducted
directly from a prepaid account or consumer’s bank account.
Mobile payments are a new way for people to pay for purchases at the cash
register. Most common forms of payment:
Google wallet: It works on T-Mobile phones with an NFC chip and can be used at
more than 200,000 merchants.
PayPal: Customers can enter their mobile phone number and PIN at cash register
to access their existing PayPal accounts at various merchant locations.
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36. WAYS TO MITIGATE THE THREATS IN
MOBILE COMMERCE
Authentication and access control: Authentication verifies the identity of an user
while access control determines what the user is allowed to do.
Encryption: In order to prevent decipheration of intercepted messages , encryption
is used between various tiers of communication.
Quality of Service: Prevents the denial of service attacks by hackers.
Throttling: It helps limiting the number of messages that are sent to a system in order
to cause the denial of service.
Auditing: The user activity can be viewed by the system administrator in order to figure
out the source of threats.
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37. APPS FOR MOBILE PAYMENTS
Other
Java based payment
web browser enabled
Embedded credit cards
SMS based
NFC Enabled
0% 5% 10% 15% 20% 25% 30%
Source:Delloitte Future Mobile Payment Survey
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38. MOBILE PAYMENTS
Merchants view mobile payments as a potentially cheaper alternative to
credit card transactions fees and a valuable channel to reach consumers.
A credit card embedded solution in a mobile phone can use the existing
partnership between credit card network financial institutions and mobile
carriers.
The stored value solution technology involves accessing funds that are
Virtually stored on the mobile device by circumventing transactions with
Financial institutions and mobile carriers.
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39. GPS TECHNOLOGY IN FLEET
MANAGEMENT
Top advantages are:
Reduced Fuel consumption due to better
route planning.
Safety Improvements: Unsafe driving
behavior such as speeding, ignoring stop
signs and abrupt braking..
Improved productivity: Through use of GPS
device ,drivers can notify about
arrivals,departures,start and end time ,work
order numbers etc.
Many customer friendly solutions such as
Text mesaging,navigation system alerts etc. 39
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