M-Commerce

Prepared by:

Nayan Khanpara (09bce021)

Guided by:

Prof. Jitendra Bhatiya

OUTLINE

M-Commerce Overview M-Commerce Framework M-Commerce Applications Mobile Payment Mobile Banking Security in M-Commerce Limitations Some M-Commerce Trends 2011 References

Mobile Commerce is the ability to conduct commerce using a mobile device, such as a mobile phone, a Personal digital assistant (PDA), a smart phone.

"Mobile Commerce is any transaction, involving the transfer of ownership or rights to use goods and services, which is initiated and/or completed by using mobile access to computer-mediated networks with the help of an electronic device."

M-commerce Overview

It will allow developers and providers to strategize and effectively implement mobile commerce applications.

M-commerce Framework

Applications Examples

Mobile financial applications (MFA)

Banking, brokerage service, mobile micro- payments

Mobile advertising Sending user specific and location sensitive advertisements to users

Product location and shopping (PLS)

Locating/ordering certainitems from a mobile device

Mobile inventory management (MIM)

Location tracking of goods,boxes, troops, and people

Proactive service management (PSM)

Transmission of informationrelated to aging (automobile)

Wireless business re-engineering (WBR)

Improvement of business services

Mobile auction, entertainment and other services

Services for a customers tobuy or sell certain items

Mobile Music/Music-on demand Downloading and playingmusic using a mobile device

Classes of m-commerce applications

Early content and applications have all been geared around information delivery but as time moves on the accent will be

on revenue generation.

M- commerce

Entertainment• Music• Games• Graphics• Video

Communications• Short Messaging• Multimedia

Messaging• Unified Messaging• e-mail• Chatrooms• Video - conferencingTransactions

• Banking• Broking• Shopping• Auctions• Betting• Booking &

reservations• Mobile wallet• Mobile purse

Information• News• City guides• Directory Services• Maps• Traffic and weather• Corporate information• Market data

Mobile Payment  Most basic and effective idea for m-commerce is

mobile payment. Mobile payment or known also as Mobile wallet is an alternative payment method. Instead of paying with cash, cheque or credit cards, a consumer can use a mobile phone to pay for a wide range of services and digital or hard goods.

There are four primary models for mobile payments

Premium SMS based transactional payments

Direct Mobile Billing

Mobile web payments (WAP)

Contactless NFC (Near Field Communication)

Premium SMS based transactional paymentsThe consumer sends a payment request via an SMS text message or an USSD to a short

code and a premium charge is applied to their phone bill or their online wallet. The merchant

involved is informed of the payment success and can then release the paid for goods.

Direct Mobile BillingThe consumer uses the mobile billing option during checkout at an e-commerce site—such as an

online gaming site—to make a payment. After two-factor authentication involving a PIN and One-

Time-Password, the consumer's mobile account is charged for the purchase.

Mobile web payments (WAP)The consumer uses web pages displayed or additional applications downloaded and installed on

the mobile phone to make a payment. It uses WAP (Wireless Application Protocol) as underlying

technology and thus inherits all the advantages and disadvantages of WAP.

Contactless NFC (Near Field Communication)Near Field Communication (NFC) is used mostly in paying for purchases made in physical stores

or transportation services. A consumer using a special mobile phone equipped with a smartcard

waves his/her phone near a reader module. Most transactions do not require authentication, but

some require authentication using PIN, before transaction is completed. The payment could be

deducted from pre-paid account or charged to mobile or bank account directly.

Payment via Internet Payment Provider

WAP GW/Proxy

SSL tunnel

MeP

GSM Security

SMS-C

User

Browsing (negotiation)

Merchant

Mobile Wallet

CC/Bank

IPP

PAYMENT VIA INTEGRATED PAYMENT SERVER

WAP GW/Proxy

ISO8583 BasedCP

Mobile CommerceServer

GSM Security

SMS-C

User

Browsing (negotiation)

CC/Bank

Merchant

Mobile Wallet

Voice PrePaid

VPP IF

SSL tunnel

Mobile payment service provider model

Operator-Centric Model

The mobile operator acts independently to deploy mobile payment service. The operator could provide an independent mobile wallet from the user mobile account(airtime). A large deployment of the Operator-Centric Model is severely challenged by the lack of connection to existing payment networks.

Bank-Centric Model

A bank deploys mobile payment applications or devices to customers and ensures merchants have the required point-of-sale (POS) acceptance capability. Mobile network operator are used as a simple carrier, they bring their experience to provide Quality of service (QOS) assurance. Collaboration Model

This model involves collaboration among banks, mobile operators and a trusted third party.

Peer-to-Peer Model

The mobile payment service provider acts independently from financial institutions and mobile network operators to provide mobile payment.

Some on-line payment service providers

Amazon Payments, Inc. is a wholly owned by Amazon.com that provides a means to process transactions online. Launched in 2006, Amazon Payments uses the consumer base of Amazon.com.

Checkout by Amazon CBA can manage several aspects of the transaction including

order processing, promotional discounts, shipping rates, sales tax calculation and

up-selling. Depending upon the needs of the merchant. Amazon Simple Pay ASP differs from CBA in that ASP does not handle additional

capabilities associated with order processing such as promotions, tax & shipping, and so on.

Amazon PayPhraseIt allows customers to check out by typing their PayPhrase

and their PIN without having to enter any shipping or credit card information.

Businesses done by Amazon.com

PayPal operates in 190 markets, and it manages more than 232 million accounts, more than 100 million of them active. PayPal allows customers to send, receive, and hold funds in 24 currencies worldwide. The PayPal Buyer Protection Policy states that the

customer may file a buyer complaint within 45 days if they did not receive an item or if the item they purchased was significantly not as described. If the buyer used a credit card, they might get a refund via chargeback from their credit-card company

Mobile BankingMobile banking is a term used for performing balance checks, account

transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile phone or Personal Digital Assistant (PDA).Models of branchless banking can be classified into three broad categories:

Bank Focused ModelIt emerges when a traditional bank uses non-traditional low-cost delivery

channels to provide banking services to its existing customers. Ex.ATMs

Bank-Led ModelIt offers a distinct alternative to conventional branch-based banking in that customer conducts financial transactions at a whole range of retail agents (or through mobile phone) instead of at bank branches or through bank employees. 

Nonbank-Led Model It is where a bank has a limited role in the day-to-day account

management.

Account Information Mini-statements and checking of account history Mutual funds Insurance policy management Pension plan management Status on cheque, stop payment on cheque Ordering cheque books Balance checking in the account Recent transactions Blocking of (lost, stolen) cards

Payments, Deposits, Withdrawals, and Transfers Domestic and international fund transfers Micro-payment handling Mobile recharging Commercial payment processing

Mobile Banking Services

Bill payment processing Peer to Peer payments Withdrawal at banking agent Deposit at banking agent

Investments Portfolio management services Real-time stock quotes Personalized alerts and notifications on security prices

Support Check (cheque) book and card requests• ATM Location

Content Services General information such as weather updates, news Loyalty-related offers Location-based services

The Security issues for M-commerce security is to protect information assets in case of

accidental or unauthorized disclosure, modification and destruction of information, which will make information unreliable, or hard to handle.

. The security problems faced by CMEC(Collaborative Mobile E-Commerce) are mainly reflected in the following aspects:

  The confidentiality of business information

Confidentiality refers to the protection of collaborative enterprise business information from being stolen, visited and other attacks.

  The integrity of business information

Integrity means the ensuring that the collaborative business information has not been tampered with, inserted, rearranged, duplicated, or delayed, and it also includes the avoiding of counterfeit information.

 

The identification of business informationIdentification is to confirm the visitor’s identity or the

source of news to prevent imitation acts.  The security of wireless network transmission

Due to the openness of wireless channel and the complexity of wireless environment, the security of wireless network is questionable.

Security Model Of Collaborative M-commerce

Collaborative database layerCollaborative database layer is mainly used to support the access, sharing, inquiry of data among the whole collaborative enterprise cluster. Therefore, the databases of collaborative enterprise cluster try to keep the same structure, and the database inquiry language used must also be efficient.

Application system layerIts main functions include collaborative enterprise management, collaborative product design, online trade platform, collaborative enterprise information sharing, product data management, client relationship management, computer-aided technology.

  Security wireless network interface

This interface is to provide secure wireless technology for mobile users through the security guarantees provided by wireless middleware technology, and interact with the application layer at the same time. 

Application layerTogether with the user interface layer, they provide the information of the web visited for each enterprise to support the collaborative business processes, including browsing information, searching and customization.

Limitations of M-commerce Usability Problem

small size of mobile devices (screens, keyboards, etc) limited storage capacity of devices hard to browse sites

WAP Limitations Speed Cost Accessibility

Cellular radio frequecies = cancer? No conclusive evidence yet could allow for myriad of lawsuits mobile devices may interfere with sensitive medical devices such as 

pacemakers

Technical Limitations lack of a standardized security protocol insufficient bandwidth 3G liscenses  transmission and power consumption limitations poor reception in tunnels and certain buildings multipath interference, weather, and terrain problems and distance-limited 

connections

Networks Bandwidth Interoperability Cell Range

     Roaming

Limitations(Conti..)

Mobile Commerce Trends 2011 Bargain Hunting

Bargain hunting has become extremely popular that allow users to scan product bar codes and discover it’s various prices at different retailers. Shoppers are melding the two worlds of online/mobile shopping with actual physical shopping to make sure they get the best prices.

Mobile Ticketing

Movie lovers can instantly purchase movie tickets from inside the app. users can receive show time reminders. Consumers can additionally break down content and search by films near them, soon-to-be-released movies and by box office winners.

Marketing

Myhabit.com is making fashion deals accessible for shoppers via an iPhone application. The app gives users fashion deals based on their location.

users can view the week’s

calendar of deals and sign up for sale reminders on specific brands.Myhabit.com includes women’s, men’s and children’s apparel.

In particular to the Myhabit app, videos show all sides of clothing and detailed photography tries to recreate the in-store shopping experience for consumers.

References

http://www.mobilecommercedaily.com/category/payments http://en.wikipedia.org/wiki/Mobile_Payments#Notes http://jiad.org/article111 https://payments.amazon.com/sdui/sdui/helpTab https://www.paypal.com/in/cgi-bin/helpweb?cmd=_help http://www.peterindia.net/M-CommerceOverview.html http://www.ieee.org/ Zhang Yunyong, Zhang Zhijiang. Principle & Application of

Middleware Technology. Tsinghua University Publishing House. 2004

Zhaoyu Liu, Dichao Peng. A Security-Supportive Middleware Architecture for Perva- sive Computing [C]. Dependable, Automatic and Secure Computing 2nd IEEE sym- posium Sept. 29 2006-Oct. 1 2006 Page(s):137-144

Q ??

Thank You