Ecommerce in Mobile Computing

Thursday, April 3, 2014GVPCE(A)1MOBILE COMMERCEWHY DID GOOGLE MAKE AN AD FOR PROMOTING SEARCH IN INDIA WHERE IT HAS OVER 97% MARKET SHARE ?!

3Google knows that more and more of its target users are on mobile and not on desktops.

Even though the Google search Reunion ad starts with a desktop experience of Google, it quickly shifts to a mobile only experience where the younger generation kids are firing up Google from their mobile devices and are also experiencing these newer integrated services such as flight information and weather in display card forms.

Eventually, the idea is to tell users that Google will take care of all the information you need, whenever youll want it wherever youll want it

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Future Is MOBILE..8 Mobile Commerce

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OutlineIntroductionHistoryOverviewServices and ApplicationsAdvantagesDisadvantagesConclusionReferences

Thursday, April 3, 20149GVPCE(A)Introduction What is CommerceCommerce is a division of trade or production which deals with the exchange of goods and services from producer to final consumer.It comprises the trading of economic value such as goods, services, information, or money between two or more entities.

Thursday, April 3, 201410GVPCE(A)Contd.. What is E-CommerceCommonly known as Electronic Marketing.It consist of buying and selling goods and services over an electronic system such as the internet .E-Commerce is the purchasing, selling and exchanging goods and services over computer networks (internet) through which transaction or terms of sale are performed Electronically.

Thursday, April 3, 201411GVPCE(A)Thursday, April 3, 2014GVPCE(A)12 Mobile Commerce:Mobile Commerce is also known as M-Commerce.M-Commerce is the buying and selling of goods and services through wireless handheld devices.M-Commerce is the process of paying for services using a mobile phone or personal organizer.

HistoryMobile 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.The M-Commerce server developed in late 1997 by Kevin Duffey at Logica.Since the launch of the iPhone, mobile Commerce has moved away from SMS systems and into actual applications.Thursday, April 3, 201413GVPCE(A)Thursday, April 3, 2014GVPCE(A)14Mobile Commerce from the Customer s point of viewThe 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.

Thursday, April 3, 2014GVPCE(A)15Mobile Commerce from the Provider`s point of viewThe future development of the mobile telecommunication sector is heading more and more towards value-added services. Analysts forecast that soon half of mobile operators revenue will be earned through mobile Commerce. Innovative service scenarios will be needed that meet the customers expectations and business models that satisfy all partners involved.

Advantages of M-CommerceThe m-Commerce is beneficial for both types of organisations i.e. Large scale and Small scale.

The Mobile users increase day by day , so through m-Commerce your business gets large and growing market place for wide range of goods and services.

1) COVER WIDE DISTANCE: Mobile devices r present everywhere and have far wider reach than computers. Therefore, t easier fr consumers t a m-Commerce application t perform transactions.

Thursday, April 3, 201416GVPCE(A)16Thursday, April 3, 2014GVPCE(A)17So, it is easy to reach users through m-Commerce.

2)CONSUMER DEALS: With increasing competition, there are higher chances of consumers getting better deals on mobile commerce sites.

3)SAVINGS: A mobile commerce app eliminates the need of buyer going to a physical store, which is both time & money saving.

Thursday, April 3, 2014GVPCE(A)184)EASY TO USE: There is no need of skilled consumers while using m commerce.

5) Consumers n access hundreds f products n ther mobile devices, which provide a scope fr retailers t increase ther reach & overall sales.

DisadvantagesSmart phone limitation: Mobile devices h small screen n comparison t laptops & personal computers, whh doesnt give a very d shopping experience t buyers.

Risk Factor: M commerce is the growing field and more investment in this technology can be risky as there is less security in wireless networks and chances of hacking are more.Thursday, April 3, 201419GVPCE(A)Thursday, April 3, 2014GVPCE(A)203) CONNECTIVITY: High speed connectivity of 3G is required in mobile commerce. Otherwise, it becomes hectic for the consumers to go through the entire product purchase process.

4)Developing a mobile commerce application is more expensive than an ecommerce app, therefore, not all retailers go for it.

5) Presently, mobile commerce apps h certain limitations related t graphics & functionalities b t a nw technology. Therefore, buyers prefer ecommerce applications.

STATISTICSThursday, April 3, 2014GVPCE(A)21Mobile commerce expected t become a 9 billion market b 2015.1 out f 2 Americans interested n using mobile wallet feature f their smart devices.The amount f retail rh md online will b approximately 54% by 2014.Industry specialists predict that 50% f smart device users will mk rh primarily through mobile wallet Men prefer making purchase n their smart phones, while women prefer tablets

Payment MethodsConsumers can use many forms of payment in mobile Commerce. They are:Premium Rate Telephone NumbersDirect Mobile BillingMacro payment and Micro payment ServicesMobile Wallet

Thursday, April 3, 201422GVPCE(A)Premium Rate Telephone NumbersPremium-rate telephone numbersaretelephone numbersfortelephone callsduring which certain services are provided, and for which prices higher than normal are charged.Unlike a normal call, part of the call charge is paid to the service provider, thus enabling businesses to be funded via the calls. These telephone numbers are easily distinguished with other numbers.Thursday, April 3, 201423GVPCE(A)Direct Mobile BillingDirect mobile billing, also called direct to bill, is a method of paying for merchandise by charging the purchase to amobile phone account. At the time of checkout, the customer selects the mobile billing option on a smart phone and follows a two-factorauthenticationprocedure.Thursday, April 3, 201424GVPCE(A)Contd..Thursday, April 3, 2014GVPCE(A)25After the authentication, which usually involves aPIN(personal identification number) and one-timepassword, the consumer's mobile account is charged for the amount of the purchase, plus applicable taxes and, in some cases, a processing fee.Direct mobile billing does not require any previous registration, and it does not involve any other sources of funding such as credit cards or bank accounts.

Mobile WalletsA mobile wallet based payment strategy deals with how, where and when the payments can be accepted and processed using the users wallet accounts.A mobile wallet payment option includes the following: Prepaid Here the users top up their mobile wallet accounts upfront and such mobile wallet accounts are used to make the payments in context of the mobile sales transactions.

Thursday, April 3, 201426GVPCE(A)Contd..Thursday, April 3, 2014GVPCE(A)27 Post-paid In this case, a users mobile wallet account is linked to his or her carrier billing account. The mobile sales transactions are paid with the users mobile wallet account, which in turn is charged to the associated mobile billing account that is usually paid on a monthly or quarterly basis. Card linked mobile wallets In this mobile wallet strategy, the mobile wallet accounts are linked to users debit or credit cards. In a mobile sales transaction, with card linked mobile wallet payment, the final payment is made from the wallet account that is linked to users cards.

Macro and Micro Payment ServicesMacro 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.Thursday, April 3, 201428GVPCE(A)Contd..

Thursday, April 3, 201429GVPCE(A)Micro PaymentsThese 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 users phone bills.Thursday, April 3, 201430GVPCE(A)Contd..

Thursday, April 3, 201431GVPCE(A)Mobile Payment Players

UserNetwork OperatorFinancial InstitutionContentProvider/Merchant

Mobile Payment Issues

UserNetwork OperatorFinancial InstitutionContentProvider/MerchantSecurityPrivacyEase of UseDevicesOpen StandardsInter-operabilityRoaming

AuthenticationIntegrityNon-repudiationFraud reduction

Getting PaidUser adoptionLow Cost

IssuesServices and ApplicationsMobile ticketingMobile Money TransferContent purchase and deliveryInformation servicesMobile bankingMobile BrowsingMobile PurchaseMobile marketing and advertising

Thursday, April 3, 201434GVPCE(A)Mobile TicketingMobile Ticketingis 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.

Thursday, April 3, 201435GVPCE(A)Contd..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:Airline ticketingCinema ticketingRailway & Bus ticketingConcert/Event ticketingConsumer voucher distribution

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Benefits to the ticket buyerInstant 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 organizerReduced will call lines and staffing.Guaranteed security, only one entry per barcode.Event is 'greener' with reduced paper waste.

Thursday, April 3, 201437GVPCE(A)Mobile Money TransferMobile 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.Ex: ICICI bank has started IMPS - Interbank Mobile Payment Service. It is an interbank electronic instant mobile money transfer service through mobile phones.Thursday, April 3, 201438GVPCE(A)

Thursday, April 3, 201439GVPCE(A)Content purchase and deliveryMobile content purchase and delivery mainly consists of the sale of ring-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.

Thursday, April 3, 201440GVPCE(A)Information servicesA 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:NewsStock quotesSports scoresTraffic reporting

Thursday, April 3, 201441GVPCE(A)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.

Thursday, April 3, 201442GVPCE(A)Contd..Mobile Banking Services are:Mini-statements and checking of account historyChecking the balanceRecent transactionsPIN provision, Change of PIN and reminder over the InternetCash-in, cash-out transactions on an ATM

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Location-based servicesThe 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:Local discount offersTracking and monitoring of people

Thursday, April 3, 201444GVPCE(A)Contd..

Thursday, April 3, 201445GVPCE(A)Mobile purchase

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

Thursday, April 3, 201446GVPCE(A)Mobile Marketing and AdvertisingMobile 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.

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Types of M-marketing and advertising:Mobile Web Poster SMS advertising MMS advertising Mobile games Mobile videosAudio Advertisements

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Mobile vouchers, coupons and loyalty cardsThe 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.

Thursday, April 3, 201449GVPCE(A)ConclusionThe core of M-Commerce is the use of a terminal(telephone, PDA, PC device) and public mobile network to access information and conduct transactions that result in the transfer of value in exchange of information, services or goods. Mobile commerce refers to any transaction with monetary value that is conducted via a mobile communications network.

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Referenceshttp://en.wikipedia.org/wiki/Mobile_Commercehttp://en.wikipedia.org/wiki/Mobile_webhttp://en.wikipedia.org/wiki/Mobile_paymenthttp://en.wikipedia.org/wiki/Micropaymenthttp://en.wikipedia.org/wiki/Mobile_Commerce

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