1. Ecommerce Applications 2007/8 Session 70 E-Commerce Applications Mobile commerce

2. Ecommerce Applications 2007/8 Session 71 Overview –Mobile computing technologies –Mobile commerce and markets –Mobile commerce applications –Security –Case studies

3. Ecommerce Applications 2007/8 Session 72 What is m-Commerce? –Mobile commerce (m-commerce) is any transaction with a monetary value that is conducted via a mobile telecommunications network. –Timely, personalized, transactions that can be conducted just about anywhere, anytime –Users will not search for information. Instead, personalised and location aware services are needed.

4. Ecommerce Applications 2007/8 Session 73 Network technologies (1/2) GSM - Global System for Mobile Communication: GSM is a digital cellular radio network. Provides connectivity for mobile devices. GPRS - General Packet Radio Service: GPRS is a packet switched wireless protocol that offers instant access to data networks. Always on (i.e. no dialup needed). Works on top of GSM. Max speed 115Kbps. EDGE - Enhanced Data Rates for Global Evolution: a higher bandwidth version of GPRS that permits higher transaction speeds, up to 384 Kbps

5. Ecommerce Applications 2007/8 Session 74 Network technologies (2/2) 2.5G – GPRS and EDGE are interim technologies before the introduction of third generation (3G) high bandwidth data networks. 3G or IMT-2000 (International Mobil Telecommunications 2000) - Broadband data at rates up to 2 Mbps with always-on status. Enhanced roaming capability by harmonizing existing standards. Network efficiency due to a nearly doubling of the spectrum efficiency of existing cellular networks, thus increasing quality, efficiency and transmission speed of wireless services. 4G – mixed networks e.g. Wi-FI

6. Ecommerce Applications 2007/8 Session 75 Service provision technologies SMS - Short Message Service allows users to send and receive text messages to and from mobile phones WAP - Wireless Application Protocol is an open, global standard for mobile solutions, including connecting mobile terminals to the Internet. Mobile Java – A complete application framework for mobile devices.

7. Ecommerce Applications 2007/8 Session 76 Users in Mio. Sources: NOKIA, Forrester 200 400 600 800 1.000 1.200 1996199719981999200020012002200320042005 Mobile phone users Internet Access with PCs WAP Devices Market Potential for m-commerce 0 More mobile Devices connected to the Internet than PC´s!

8. Ecommerce Applications 2007/8 Session 77  More than 21 million Europeans will take up mobile banking (Datamonitor) m-Commerce growth  The revenues for mCommerce will skyrocket (Jupiter Communications) US: $600 million Europe: $1.7 billion Japan: $3.5 billion  Turnover in Germany alone will top €4 billion (Durlacher)

9. Ecommerce Applications 2007/8 Session 78 Mainframes banking, airlines PC’s word processing business processes spreadsheets Internet / E-commerce e-mail info channels e-commerce cross-corporate business processes Why M-Commerce

10. Ecommerce Applications 2007/8 Session 79 M-Commerce Applications Mainframe s PC’s Internet / E- commerce M-commerce Killer Applications Examples of Technology & Buzzwords Corporate Data Processing - general ledger - banking - Airline bookings -.... - Terminals - MVS - X.25 -... Office Automation - word processing - spreadsheets - ERP (e.g.SAP) -.... - DOS/Windows - Client/Server - LAN -... Commerce & Communication - e-mail - info channels - e-commerce - cross-corporate business processes - TLP/IP - HTML - Java -... M-commerce ? -GSM -GPRS/UMTS - - Blue Tooth - W-LAN

11. Ecommerce Applications 2007/8 Session 710 Main end user benefits Added Value - do things you couldn‘t do before Convenience - do things faster and easier Entertainment - have more and new fun Future killer applications are grouped in three areas Market Drivers 1. Ubiquitous “professional“ connectivity - take the office everywhere 2. Ease of time-critical and “annoying“ transactions - hazzle-free bookings, payment and ticketing 3. Information and entertainment channels - take enhanced media channels (TV&Internet) everywhere

12. Ecommerce Applications 2007/8 Session 711 Credit card fraud Source: ECR/Mintel (2001) Also check out www.apacs.org.ukwww.apacs.org.uk

13. Ecommerce Applications 2007/8 Session 712 72% of UK credit card holders have never made a purchase online (NOP Mintel) 2/3 of Internet users would purchase more online if transactions were more secure (NOP Mintel) According to Taylor Nelson Sofres, 28% of UK Internet surfers do not buy online, due to fear of entering credit card details 2/3 of Internet users would purchase more online if transactions were more secure (NOP Mintel) According to Taylor Nelson Sofres, 28% of UK Internet surfers do not buy online, due to fear of entering credit card details Consumers and credit card fraud

14. Ecommerce Applications 2007/8 Session 713 Security and on-line payments Card number easy to copy, card easy to skim Authentication Risk reduction Authorisation Signature, cardholder not present IP network

15. Ecommerce Applications 2007/8 Session 714 M-commerce approach to security interactive application asks for the authorisation by PIN code Mobile network recognises caller ID GSM, banking system Authentication Risk reduction Authorisation

16. Ecommerce Applications 2007/8 Session 715 Case Study: Paypal  Accepted at over 15,000 US websites  10.6 million users  Supports person-to-person  Used on ebay  Email and limited WAP based transactions only  No scope for real world transactions Weaknesses Strengths Users require a bank account and email address to send and request money, shop and accept as a business payment World’s largest Internet payment service Claims that it’s online verification system is fraud free

17. Ecommerce Applications 2007/8 Session 716 Case study: M-Wallet  Will enable mobile micropayments of as little as 5p  Credit Card, Debit card and Direct Debits accepted with M-Wallet  M-wallet user can choose preferred payment method  Not launched yet  Only available to Vodafone users  Person-to-Person not supported Weaknesses Strengths Micropayment service launched in UK late Spring 2002 Micropayments of 5p to £5 will be charged to users phone bill Fully functional Internet, WAP and real world payments launched

18. Ecommerce Applications 2007/8 Session 717 Case study: Oyster Transport for London Used by millions every day Micro-payments Prepay or credit card Already accepted at thousands of outlets No person to person TfL is not financial service

19. Ecommerce Applications 2007/8 Session 718 Summary –Mobile computing technologies –Mobile commerce and markets –Mobile commerce applications –Security –Case studies