M-COMMERCE

Objective To understanding the basic of M- commerce Benefit of M-commerce with small business Know about technology that based on M-commerce How to apply technology of M- commerce for business Know about advantage and disadvantage of M-commerce

Introduction Ability to conduct commerce using a mobile device, Mobile devices like mobile phones, personal digital assistants (PDAs) and other devices with a wireless connection. Quite different from traditional of E- commerce.

COMMON MEAN OF PAYMENT

What is 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. A micropayment is an online transaction and can be used for digital content purchase such as music, news or consumer reports.

EVOLUTION

Messaging services and information based m-commerce services Personal digital assistance (PDAs) Cellular phone

M-commerce benefit Buyer:  Buyers can access the online products catalogs and buy the product of their choice as they can on a computer. Companies:  Companies can display products on their websites and the buyers select the products through the mobile phones and other hand held devices.

For a small business could benefit from m- commerce. Benefit for business For a small business could benefit from m- commerce. Finance Sectors Selling a product or service Telecommunication Sectors Improving productivity

Advantage

Mobile payment types EMS, MMS 2.5G (Eg. GPRS) 3G Mobile Content Out of band Proximity Example Anne is on holiday, and uses her Nokia 7650 to take a photo, adds audio comment, and sends it via MMS to Robert. She is charged $1 to her prepay account An SMS notifies Anne that U2 concert tickets have just gone on sale. From an Internet café she browses to the ticket vendor site, books her tickets and pays with her Visa card. The payment authentication request Appears on her mobile phone via SMS, and she authenticates using a personal PIN, digitally signing the order. A receipt is sent to her phone. Back at home , Anne is at her photo and imagine shop; she transfers her holiday photos from her digital camera to the store computer over as Bluetooth link; the payment request is sent to telephone, also over Bluetooth, where she accepts it, and her credit card information is returned to the store point of sale device. Technology Enablers EMS, MMS 2.5G (Eg. GPRS) 3G SMS, SIM Toolkit application, WAP Push, WPKI, Dual slot, Dual SIM, J2ME. Bluetooth 802.11b, IrDA Features Meditation system integrated with real time stored value micropayment system Wallet server with SMS and wireless PKI support, Acquiring gateway Payment Java applet on mobile phone and point of sale device.

Disadvantage

EXAMPLES Mobile marketing Mobile banking Mobile ticketing Micro payment

What is G-CASH? Cash-less and card-less micro payment over a mobile phone. The country’s first and only mobile wallet service Purchase goods and services Micro-finance applications Tax and bill payments Send and receive money person to person or P2P Domestic and international remittances

Subscriber Registration Send SMS: REG M-PIN/Mother’s Maiden Name/First Name/Last Name/Addres REG 1234 / Aurora Reyes/ Juan/ Dela Cruz/ 5 Santol St., Project 4, QC/ 024261001 Subscriber 2882 SMS facility Thank you Juan Dela Cruz for registering to G-Cash on 08/12/04 at 10:30 a.m. You may now use G-Cash. For more info, reply to this msg with INFO. Ref Confirms receipt of SMS with welcome text and corresponding trace number

Merchant: Verifies identity of customer Processes transaction Collects payment Sends G-Cash from outlet’s service unit to recipient’s mobile no. via P2P • Recipient receives SMS advisory of G-Cash transfer • Outlet’s service unit receives SMS acknowledgment with confirmation number Customer goes to Outlet to exchange cash for GCash Customer shows valid Text-a- Payment ID and gives cash-in amount and service fee

P2P Transfer Enter amount and PIN. Send to 2882+10 digit mobile no. of recipient Fee: only P1.00/send Both the sender and recipient receive a SMS advisory with corresponding trace number

Technology Bluetooth Wireless application protocol (WAP) General Packet Radio Service (GPRS) Short message service(SMS) Bluetooth

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 for information, services or goods. Mobile Commerce refers to any transaction with monetary value that is conducted via a mobile telecommunications network.

PPT Source: www.studymafia.org