1. Mobile E-commerce
CS37420

2. Mobile Ecommerce Mobile telephony Standards Smartphones
Software solutions
Payment Systems
Operating Systems
Apps

3. Background
Mobile phones send and receive radio signals with any number of cell site base stations fitted with microwave antennas
These sites are usually mounted on a tower, pole or building, located throughout populated areas, then connected to a cabled communication network and switching system
The phones have a low-power transceiver that transmits voice and data to the nearest cell sites, normally not more than 8 to 13 km (approximately 5 to 8 miles) away .

4. Being mobile When the mobile phone or data device is turned on,
it registers with the mobile telephone exchange, or switch, with its unique identifiers
It can then be alerted by the mobile switch when there is an incoming telephone call.
The handset constantly listens for the strongest signal being received from the surrounding base stations, and is able to switch seamlessly between sites.
As the user moves around the network, the "handoffs" are performed to allow the device to switch sites without interrupting the call.

5. Cell Sites
Cell sites have relatively low-power (often only one or two watts) radio transmitters which broadcast their presence and relay communications between the mobile handsets and the switch. The switch in turn connects the call to another subscriber of the same wireless service provider or to the public telephone network, which includes the networks of other wireless carriers. Many of these sites are camouflaged to blend with existing environments, particularly in scenic areas.

6. Standards

7. Digital Mobile Phones Over 5 billion registered for use in the world
GSM standards enable roaming and global sales
Smartphone is the enabler for mobile e commerce

8. Smartphone
Very short history

9. Nokia Communicator

10. Blackberry 8700

11. Apple 5

12. Samsung Galaxy S3

13. Content purchase and delivery
Currently, 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.
The download speeds available with 4G networks make it possible to buy a movie on a mobile device in a couple of seconds.

14. 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:
Local discount offers
Local weather
Tracking and monitoring of people

15. Mobile money transfer, ticketing, vouchers, coupons and loyalty cards
ATM
Mobile ticketing
Mobile vouchers, coupons and loyalty cards

16. Traffic and Banking Traffic reporting Mobile banking
Customized traffic information, based on a user's actual travel patterns, can be sent to a mobile device
This customized data is more useful than a generic traffic-report broadcast, but was impractical before the invention of modern mobile devices due to the bandwidth requirements
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.
This service is often referred to as Mobile Banking, or M-Banking.

17. Mobile marketing and advertising
In the context of mobile commerce, mobile marketing refers to marketing sent to mobile devices.
Companies have reported that they see better response from mobile marketing campaigns than from traditional campaigns.
Research demonstrates that consumers of mobile and wireline markets represent two distinct groups who are driven by different values and behaviors, and who exhibit dissimilar psychographic and demographic profiles.  
As a result, successful mobile commerce requires the development of marketing campaigns targeted to this particular market segment

18. M-commerce in Retail
Mobile is perhaps the number-one area of digital commerce to watch,
Major attraction
its ubiquity,
popularity
ever-expanding technical capability
widespread belief that mobile internet access could overtake desktop access in next 2 – 3 years

19. Growth
A sluggish start now appears to have given way to a sustained momentum for the channel.
From the IMRG Capgemini Quarterly Benchmarking Index,
mobile sales rise from 0.4 per cent of e-retail sales to 5.3 per cent over the space of just two years. (IMRG Capgemini Quarterly Benchmarking Index)
It is probably fair to say then that m-commerce has now begun its rise to sales prominence in earnest.
It is clear that the opportunity is too great to be ignored

20. What to do?
But what should retailers focus on in order to ensure they are able to take advantage of it?

21. App or web To focus on a mobile-optimised site or develop an app?
The answer
depends on the brand
its specific customer profile
the nature of its offering
On the whole though, when it comes to sales conversion rates, a mobile-optimised site would appear to be the best choice

22. Apps can be very useful for
engagement and providing a good customer experience
particularly with their capacity to utilise some of the more advanced functionality of a mobile device
Less potent as a direct stream for increasing revenue
Many retailers generate less than 1 per cent of their sales through an app.

23. Transactional or Promotional
If the primary aim of a mobile channel is to be transactional
an optimised site seems to be the more appropriate option
a tendency for users to go straight to their browser when shopping
which is, and always will be, a “browsing” experience.
A mobile site will reach more consumers
Compatibility issues should be at the forefront of any strategic decision-making

24. The Customer
As with all things in retail, it is largely a matter of understanding the customer and providing an offering appropriate to their needs
Although the growth rate is very impressive, the actual percentage of the total market that mobile accounts for is still relatively small

25. Scalability
While it may be appropriate for a site to have an eye on scalability in anticipation of that growth
The focus for the time-being should probably be on presenting a solution that caters for the basics very well
Lots don’t

26. Payment Systems A small set of examples: Credit/Debit Cards
Electronic Banking
Contactless Payment Systems
SMS Payment

27. Credit Cards Most popular way of paying in B2C transactions online
Estimated in USA that 90% of all B2C is via credit/debit cards
Introduction of card verification number (CVN) has improved security
Banks have further checks to request passwords etc
Smartcards can be loaded with cash at ATMs or by phone

28. Electronic Banking New apps on phones support electronic banking.
Password controlled, easy to use
Checks of balances
Money transfer to other bank accounts
Set up of common payments

29. Contactless Payment Systems
Some mobile phone can make mobile payments using contactless payments
 The phone and point of sale terminal must support near field communication (NFC) 
This requires the co-operation of
manufacturers
network operators
retail merchants to enable contactless payments through NFC-equipped mobile phones

30. SMS Payments Method of charging to mobile phone bill
The consumer sends a payment request via an SMS text message to a  short code 
Premium charge is applied to their phone bill The merchant involved is informed of the payment success
Releases the paid for goods
A trusted delivery address is typically not given
Goods are most frequently digital
Merchant replying using a Multimedia Messaging Service to deliver the purchased music, ringtones, wallpapers etc.

31. Operating Systems Symbian Blackberry Was most popular
Consortium led by Nokia
Now open source
Blackberry
Tightly built to support secure

32. The Major Players Android IOS Windows 8 Most installs
Derived from Linux
IOS
Apple introduce first multi-touch phone
Opened up to app developers
Windows 8
New interface
Integrated social media

33. Apps Apps are in their infancy Very sophisticated multi sensor inputs
New easy to use development tools
HCI is a problem
Screen size on phones
Navigation - Hierarchical
Sheer Bad Design
But very early days……………