ROLL NO: 352

NAME: SABIRA LARIK

CLASS: BBA (FINAL) (eve)

DEPARTMENT: BUSINESS ADMINISTRATION:

ASSIGNMENT TOPIC: M.COMMERCE

SUBMITED TO: SIR ZAHID SAHITO

SUBMITED DATE: 02/05/2014

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Introduction Of m-commers

M-commerce (mobile commerce) is the buying and selling of goods and services through wireless handheld devices such as cellular telephone and personal digital assistants (PDAs). Known as next-generation e-commerce, m-commerce enables users to access the Internet without needing to find a place to plug in.

The emerging technology behind m-commerce, which is based on the Wireless Application Protocol (WAP), has made far greater strides in Europe, where mobile devices equipped with Web-ready micro-browsers are much more common than in the United States.

In order to exploit the m-commerce market potential, handset manufacturers such as Nokia, Ericsson, Motorola, and Qualcomm are working with carriers such as AT&T Wireless and Sprint to develop WAP-enabled smart phones, the industry's answer to the Swiss Army Knife, and ways to reach them. Using Bluetooth technology, smart phones offer fax, e-mail, and phone capabilities all in one, paving the

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way for m-commerce to be accepted by an increasingly mobile workforce.

As content delivery over wireless devices becomes faster, more secure, and scalable, there is wide speculation that m-commerce will surpass wire line e-commerce as the method of choice for digital commerce transactions.

The use of wireless handheld devices such as cellular phones and laptops to conduct commercial transactions online. Mobile commerce transactions continue to grow, and the term includes the purchase and sale of a wide range of goods and services, online banking, bill payment, information delivery and so on. Also known as m-commerce.

The range of devices that are enabled for mobile commerce is growing, having expanded in recent years to include smart phones and tablet computers. The increasing adoption of electronic commerce provided a strong foundation for mobile commerce, which is on a very strong growth trajectory for years to come. 

The rapid growth of mobile commerce is being driven by a number of positive factors the demand for applications from an increasingly mobile customer and consumer base; the rapid adoption of online commerce thanks to the resolution of security issues; and technological advances that have given wireless handheld devices advanced capabilities and substantial computing power. 

You all know about the eCommerce, which means you can buy things online without going to shop. So eCommerce is become necessary for any business to get good sales over internet.

Now a days, mobile companies invented new smart phones day by day. So user can get all the information online on their cellphones. These eCommerce companies are targeted these smart phone users through mobile website and due to this mobile website Mobile Commerce came in existence.

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Advantages of Mobile Commerce

This m.Commerce is beneficial for both type of businesses 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 wild range of goods and services.

1. Cover wild distance: Mobile is the only technology which is now become necessary for any person in social and business life than computers. So, it is easy to reach users through mCommerce.

2. Consumer deals: As more users use mCommerce, there are lots of companies use mCommerce site to reach them by giving different and better deals in comparison of their competitor. 3. Savings: Companies try to reach to the consumer directly through mCommerce, so users have no need to go far to the store physically and at the end it saves user’s time and money.

4. Easy to use: There is no need of skilled consumer. Buyers can have look thousands of items on their cell phones and there is no need of online checkout process.

The m-Commerce trend іѕ catching attention of many shopaholics. There are various reasons, whісh make m-Commerce better option for buyers* Mobile devices are present everywhere an hаνе far wider reach than computers. Therefore, it іѕ easier for consumers to υѕе a m-Commerce application to perform transactions.* With increasing competition, there are higher chances of consumers getting better deals on mobile commerce sites.* A mobile commerce app eliminates the need of buyer going to a physical store, whісh іѕ both time & money saving.* Consumers саn access hundreds of products on thеіr mobile devices, whісh provide a scope for retailers to increase thеіr reach & overall sales.

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Advantages of Mobile Payment   Solutions Have you considered offering your customers more flexible payments options?

A mobile application offering small businesses a reliable option for accepting payments other than checks and cash. Square’s technology is allowing business owners to now process credit card payments using smart phones and tablets.

Square works using a free app and card reader that plugs into your Smartphone or tablet. Simply swipe the credit card through the reader, have the customer sign the screen with the finger or a stylus, and a receipt is sent to the customer via text or email.

Obviously Square’s simplicity of use is a big advantage; here are a few more advantages of using Square’s technology for your small business:

1. Quick and easy processing. Square processes payments directly, eliminating the need for third-party processing services and the merchant account. In most cases, payments are posted to your business’s account the next day.2. Transparent and cost-effective. Merchants can now opt for Square’s rate of 2.75% per swipe or monthly flat fee of $275. No hidden charges and no “qualified” versus “non-qualified” transactions.

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3. Analytics provided.  Merchants can view payment data and transactions within the app and online. The dashboard shows basic payment information and transaction history, as well as offering interactive data sets to identify trends, such as purchases by month, day, time, etc.4. Growing innovation. Square’s technology is continually evolving, offering new and innovative solutions for businesses. Recently, Square introduced a digital wallet application which allows consumers to purchase goods and services in stores with a simple wave of the Smartphone, no credit card needed!

Disadvantages of Mobile Commerce

Every invention has its own merits and demerits. It is applicable in this mCommerce business also.

1. Smart phone limitation: Mobile has no big screen like desktop or laptops, so sometimes users tired to navigate more and more to choose just one item from thousands. It affects shopping rates.

2. Habituate: Every new technology has some problem at the starting phase. Here mCommerce is new application, so sometimes people avoid changing which are rapidly change. As they are habituate to buy products from eCommerce

3. Risk factor: Each business has its own risk. Same Moblie commerce is the growing field and a lot of investment in this field is become risky. Because technology change day by day. Moreover, there less security in wireless network, so in data transfer hacking chances are more.

4. Connectivity: Moblie commerce needs high speed connectivity of 3G. Otherwise it is become hectic for user to go through entire product purchase process.

Mobile commerce hаѕ сеrtаіn limitations attached to it* Mobile devices hаνе small screen in comparison to laptops &

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personal computers, whісh doesn’t give a very ɡοοd shopping experience to buyers.* Presently, mobile commerce apps hаνе сеrtаіn limitations related to graphics & functionalities bесаυѕе it іѕ a new technology. Therefore, buyers prefer ecommerce applications.* Poor web connectivity and ѕƖοw speed іѕ one more reason that mаkеѕ the entire product рυrсhаѕе & payment process a hassle for buyer. The wider acceptance of 3G іѕ dеfіnіtеƖу going to speed-up mCommerce.* Data transferred асrοѕѕ mobile devices & wireless networks hаνе higher risk of getting hacked.* Developing a mobile commerce application іѕ more expensive than an ecommerce app.

Your business through Mobile Commerce

You can use your exiting website for mobile commerce rather than to develop from the scratch. So mCommerce sites are cheap in comparison. Consumers are become adaptive to the new technology trend as per one survey held in United States.

Current trends

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So what are people buying using their mobiles? Clothing and gifts are the most popular items, but consumers are now purchasing a truly wide variety of goods and services:

Clothing, shoes, accessories ($20 million) Books ($13 million)

Gifts ($12 million)

Financial products and services ($11 million)

Downloaded music ($9 million)

Tickets for movies ($7 million)

Computer software ($6 million)

Video games and downloaded apps ($6 million)

Collectables and memorabilia ($6 million)

Baby and child-related goods ($5 million) 

Future trends

What’s so intriguing about the report is the difference between what people actually buy online and the way they intend to use their mobiles to make purchases in the future. The data shows consumers are happy to buy lower priced items such as music and books on their phones, but that they are also prepared to buy higher priced items such as airline tickets, home wares and clothes too. 

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According to the research, the top 10 items consumers intend to purchase if they are available to buy on a mobile are: 

Tickets for airlines Movie tickets

Gifts

Books

Tickets for live concerts/events

Clothing, shoes, accessories

Computer software

Home appliances

Donations

Health and beauty products 

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Security and safety concerns: consequences for m-commerce

The primary issue revolved around security. Users feared that their devices would be attacked by viruses, resulting in the theft of personal data. Those people using Blackberry and Android feared the interception of their data the most.

People interested in e-commerce seemed to be most comfortable doing so at home. The home setting gives the buyer familiarity. The software and technology sitting on a desk at home feels secure and protective and keeps the bad guys out. That security is recognizable, and it works. On the other hand, users of mobile media haven’t yet given the thumbs up to the security featured in mobile devices.

The survey also found that Smartphone users felt exposed in public, concerned about someone peaking over their shoulder as information is keyed. This is why people felt more secure buying from sites where their buying data is already stored.

Mobile commerce and the limits of small screen sizes

Users didn’t like the small screen size. The primary compliant centered around the inability to get a good look and feel for the product. Unless a buyer is familiar with a product or the product’s

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appearance doesn’t matter, users are hesitant to buy an item on a Smartphone.

Screen sizes and the behavior of Smartphone users are not taken into account enough in general, whether it concerns e-commerce, mobile websites or mobile email.

Benefits of mobile commerce

a) Mobile commerce involves all kind of electronic transactions by the use of mobile phone.

b) By the use of mobile commerce enterprises can improve and widen their market reach, cut down on cost give customers better service

c) Users can benefit from m-commerce by the convenience the m-commerce provide to them and Organizing personal data

d) Examples of m-commerce are mobile parking meter payments and buying ringbones and games online. Those kind of services are recognized as Micro payments: any transaction cost lower than $10

e) High value purchases such as land, houses and cars will be more convenient in the future

The Promise and Problems of m-Commerce

Lack of awareness. Only a few practical m-commerce applications currently exist, although the number has begun to increase. As a result, there is relatively little consumer awareness about the value of m-commerce.

Concerns about security. Even more than with Internet-based e-commerce, ordinary users worries about the safety and reliability of conducting business over a wireless connection. As CII’s Vikram

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Tiwathia noted, “Users will engage in m-commerce only if they trust that the transactions made through their devices are secure.” 

Lack of a simple, standardized payment mechanism. There is no equivalent in India of the credit card or ATM to provide an easy way to make payments or transfer funds via a mobile phone. Several countries (such as Japan, but not the United States) have already developed phone-based “mobile wallets,” but there is nothing like this in India.

Imbalance between service providers and network operators. On the Internet, any provider who conforms to the Net’s standards can put an application online without anyone’s permission; on mobile networks, providers have to work with private network operators. At present, there are many small service providers who must depend on a relatively few large mobile network operators to reach customers (or, as Sukanta Dey of Tata Teleservices Ltd. put it, “there are six Goliaths and 600 Davids”). Because of this imbalance, the operators are able to capture the lion’s share of the revenues generated by value-added services. In addition, service providers complain that it is difficult to negotiate deals and to arrange for prompt settlements from operators who are focused on attracting more subscribers rather than increasing the revenue per subscriber. 

Heterogeneous environment. Another challenge for service providers is that they must develop applications for multiple networks and a wide range of devices. According to Vanu Bose, chief executive officer (CEO) of Vanu Inc., whereas there are only two major Web browsers for PCs, in the world of mobile phones there are multiple operating systems with multiple browsers, so the same application can look completely different on different screens. Without standardization, developing m-commerce applications can be prohibitively expensive. 

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Lack of high speed connections. Access to high-speed networks is important to providing “rich” applications. The 3G networks that will deliver higher speeds for mobile connections 

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