MOBILE COMMERCE

GVPCE(A)

Tuesday, April 22, 2014

WHY DID GOOGLE MAKE AN AD FOR PROMOTING SEARCH IN INDIA WHERE IT HAS OVER 97% MARKET SHARE ?!

Google 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

GVPCE(A)

Tuesday, April 22, 2014

Future Is MOBILE..

Mobile Commerce

Outline
Introduction History Overview Services and Applications

Advantages
Disadvantages Conclusion

References

GVPCE(A)

Tuesday, April 22, 2014

Introduction
What is Commerce
Commerce 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.

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Tuesday, April 22, 2014

Contd..
What is E-Commerce
Commonly 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.
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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.

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GVPCE(A)

Tuesday, April 22, 2014

History
Mobile 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

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Mobile Commerce from the Customer s point of view

The 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.

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GVPCE(A)

Tuesday, April 22, 2014

Mobile Commerce from the Provider`s point of view

The 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. GVPCE(A) 15
Tuesday, April 22, 2014

Advantages of MCommerce
The 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 mCommerce 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.

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GVPCE(A)

Tuesday, April 22, 2014

So, 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.

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Tuesday, April 22, 2014

4)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.

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Tuesday, April 22, 2014

Disadvantages
1)

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

2)

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.

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GVPCE(A)

Tuesday, April 22, 2014

3) 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.

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GVPCE(A)

Tuesday, April 22, 2014

STATISTICS
Mobile 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

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GVPCE(A)

Tuesday, April 22, 2014

Payment Methods
Consumers can use many forms of payment in

mobile Commerce. They are:

1. Premium Rate Telephone Numbers 2. Direct Mobile Billing 3. Macro payment and Micro payment Services 4. Mobile Wallet

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GVPCE(A)

Tuesday, April 22, 2014

 Premium-rate

Premium Rate Telephone Numbers

telephone numbers are telephone

numbers for telephone calls during 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
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other numbers.

GVPCE(A)

Tuesday, April 22, 2014

Direct Mobile Billing

Direct mobile billing, also called direct to bill, is a

method of paying for merchandise by charging the

purchase to a mobile phone account.
At the time of checkout, the customer selects the

mobile billing option on a smart phone and follows a two-factor authentication procedure.

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Tuesday, April 22, 2014

Contd..
After the authentication, which usually involves

a PIN(personal identification number) and onetime password, 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.

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Tuesday, April 22, 2014

Mobile Wallets
A 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.

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Tuesday, April 22, 2014

Contd..
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.

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Macro and Micro Payment Services

Macro 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.

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Tuesday, April 22, 2014

Contd..

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Tuesday, April 22, 2014

Micro Payments
These 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.

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Tuesday, April 22, 2014

Contd..

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Tuesday, April 22, 2014

Mobile Payment Players

User

Network Operator

Financial Institution

Content Provider/ Merchant

Mobile Payment Issues

User Network Operator Financial Institution Content Provider/ Merchant

Security

Privacy
Ease of Use Devices

Open Standards Interoperability Roaming

Authentication

Getting Paid User adoption

Integrity
Non-repudiation Fraud reduction

Low Cost

Issues

Services and Applications

Mobile ticketing Mobile Money Transfer Content purchase and delivery Information services

Mobile banking
Mobile Browsing

Mobile Purchase
Mobile marketing and advertising
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Mobile Ticketing
Mobile Ticketing is 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.

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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: 1. Airline ticketing 2. Cinema ticketing 3. Railway & Bus ticketing 4. Concert/Event ticketing 5. Consumer voucher distribution
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Benefits to the ticket buyer

Instant 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 organizer

Reduced will call lines and staffing. Guaranteed security, only one entry per barcode.
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Event is 'greener' with reduced paper waste.

GVPCE(A)

Tuesday, April 22, 2014

Mobile Money Transfer

Mobile 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.
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Tuesday, April 22, 2014

Content purchase and delivery

Mobile 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.

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GVPCE(A)

Tuesday, April 22, 2014

Information services
A 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:
News Stock quotes Sports scores Traffic reporting
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Mobile banking

Banks and other financial institutions use mobile

Commerce to allow their customers to access account information and make transactions, such as purchasing
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stocks,

remitting

money,

receive

notifications, transfer money to other banks.

Tuesday, April 22, 2014

Contd..
Mobile Banking Services are:
1. Mini-statements and checking of account history 2. Checking the balance 3. Recent transactions 4. PIN provision, Change of PIN and reminder over

the Internet
5. Cash-in, cash-out transactions on an ATM
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Location-based services
The 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:

1. Local discount offers 2. Tracking and monitoring of people
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Contd..

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Tuesday, April 22, 2014

Mobile purchase
Some merchants provide mobile websites that are

customized for the smaller screen and limited user interface of a mobile device.

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Tuesday, April 22, 2014

Mobile Marketing and Advertising

Mobile

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 videos Audio Advertisements

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Tuesday, April 22, 2014

Mobile vouchers, coupons and loyalty cards

The 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.

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Tuesday, April 22, 2014

Conclusion
The 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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Tuesday, April 22, 2014

References
http://en.wikipedia.org/wiki/Mobile_Commerce http://en.wikipedia.org/wiki/Mobile_web http://en.wikipedia.org/wiki/Mobile_payment http://en.wikipedia.org/wiki/Micropayment http://en.wikipedia.org/wiki/Mobile_Commerce

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GVPCE(A)

Tuesday, April 22, 2014