M-Commerce Mobile commerce is gaining increasing acceptance.

The need for mobility is a primary driving force behind mobile banking, mobile entertainment and mobile marketing, and is supported by an ever increasing convergence of computers and mobile telecommunication devices.

Mobile commerce was born in 1997 when the first two mobile-phones enabled Coca Cola vending machines were installed in the Helsinki area in Finland. The machines accepted payment via SMS text messages. The first mobile phone-based banking service was launched in 1997 by Merita Bank of Finland, also using SMS. “Electronic” versus “mobile” The adjective “electronic”, used within the specific contexts of “ebusiness” or “e-commerce”, signifies an “anytime access” to business processes. The access to computer networks is in this case stationary. The services are therefore not completely independent of the current geographic location of the user. The adjective “mobile”, used within the specific contexts of “mcommerce” or “m-business”, signifies an “anytime and anywhere access” to business processes. The access takes place using mobile communication networks, making the availability of these services independent of the geographic location of the user. At this point it would be also helpful to differentiate between the terms “mobile” and “wireless”. As opposed to the term “mobile” that signifies an “anytime and anywhere” access to computer-mediated networks, “wireless” is just a method of communication between electronic devices, e.g. with the help of infrared interfaces. Whereas a mobile device is per se wireless, not every wireless device may be suitable for feasible mobile applications. For example, wireless local area networks (WLAN), with their limited maximum range of 300metres, cannot support feasible mobile applications. Defining e-Commerce A simple definition of e-commerce describes it as “the buying and selling of products and services over the Web” Defining m-commerce: M-commerce is sometimes referred to as “mobile e-commerce”12, because its transactions are basically electronic transactions, conducted using a mobile terminal and a wireless network. Mobile terminals include all portable devices such as mobile telephones and PDAs, as well as devices “mounted in the vehicles that are capable of accessing wireless networks” and perform mcommerce transactions

m-commerce opens new avenues for push-marketing. Simple authentication procedure. Positioning technologies. services and companies that he wants to be kept informed about. allow companies to offer goods and services to the user specific to his current location. By virtue of its ability to be immediate.Features of m-commerce Ubiquity. Mobile telecommunication devices function with an electronic chip called Subscriber Identity Module (SIM). Closely related to ubiquity is the possibility of real-time availment of services Localization. Ever since the introduction of the General Packet Radio Service (GPRS) mobile devices are constantly “online Pro-active functionality. . such as content and product offers. Ubiquity means that the user can avail services and carry out transactions largely independent of his current geographic location (the “anywhere” feature) Immediacy. such as the Global Positioning System (GPS). so that a user may choose those products. local and personal. Instant connectivity. Services like “Opt-in advertising” can be offered.

Mobile commerce is usually called as ‘m-Commerce' in which user can do any sort of transaction including buying and selling of the goods. It is also said that it is the next generation wireless e-commerce that needs no wire and plug-in devices. Advantage of m-Commerce . sport andother news) • Travel information • Tracking services (persons and objects) • Mobile search engines and directories· • Mobile office Mobile marketing Mobile couponing • Direct (context-sensitive) marketing • Organization of mobile events • Mobile newsletters Mobile shopping • Mobile purchasing of goods and services Mobile ticketing Public transport • Sports and cultural events • Air and rail traffic • Mobile parking Telematics services • Remote diagnosis and maintenance ofvehicles • Navigation services • Vehicle tracking and theft protection • Emergency services Mobile Commerce Mobile Commerce refers to wireless electronic commerce used for conducting commerce or business through a handy device like cellular phone or Personal Digital Assistant (PDAs). The next generation of commerce would most probably be mobile commerce or m-commerce. asking any services.M-Commerce applications and methods of payment Mobile banking • Mobile accounting • Mobile brokerage • Mobile financial information Mobile entertainment • Mobile gaming • Download of music and ring tones • Download of videos and digital images • Location-based entertainment services Mobile information services\ • Current affairs (financial. Presuming its wide potential reach all major mobile handset manufacturing companies are making WAP enabled smart phones and providing the maximum wireless internet and web facilities covering personal. transacting and transferring the money by accessing wireless internet service on the mobile handset itself. official and commerce requirement to pave the way of m-commerce that would later be very fruitful for them. transferring the ownership or rights.

tele-communication and information technology services. services. greater efficiency and higher fruitfulness. which can be used any time through voice calling. mobile commerce promises exceptional business market potential. M-commerce is more personalized than e-commerce and thus needs a gentle approach to appraise m-commerce applications. stock market and share brokers. In these sectors. Finance Sectors Mobile Commerce works vastly in finance sector including all big and major financial institutes. Banks also provide round the clock customer care services. Telecommunication Sectors Mobile has played a giant role in communication technology through its versatility and superiority. M-Commerce is not only being widely accepted but also it is being more used as a popular way of business/ commerce. the user can access the stock market quotes and get in live touch with current trading status on its mobile in two forms either voice (customer assistance) or non-voice (sms alerts) or both. The booming popularity has forced the corporate world to develop a new commerce platform that can reach to masses.M-commerce has several major advantages over its fixed counterparts because of its specific inbuilt characteristics such as ubiquity. Areas / Uses of m-commerce In the current commerce industry. retails. While in the stock market. he/she can access the services or register services via voice calling or via Short Message Services (SMS) services. and distribution. Whenever any user needs money or wants any sort of banking and finance related services. Mobile commerce has attracted massive traffic because of its unique . Some customer care services are also provides non-voice services on mobile that is known as insta-alert facility. Thus it is not surprising that mobile commerce is emerging much faster than its fixed counterpart. personalization. mobile commerce or M-Commerce has been entered in finance. banks. or pay the bill from its bank account using mobile commerce facilities. It has already surpassed the fixed phone in the world. Software platform is essential for operating any mobile and this tool has revolutionized the communication world because of its functioning as a small computer. WAP based mobile handsets allow the user to access the official website of the institute. The ubiquity and easy usage has further made it extremely popular across the globe. flexibility. User can transact money or transfer money. Also broker can suggest the appropriate stock for intra-day trading to their users. The share broker sends market trends and tips of trading on their clients' mobile.

Customer would be able to book the order. which affect the human life. Several dealings can be handled through mobile phones.0. the status of requested processing and customer care support. Besides this several bills can be paid using mobile and user can also check the available balance. sports figures and traffic updates and many more onto a single handheld device ‘mobile'. the status of cheques. . The webmasters have skillfully exploited this new area of IT-enabled commerce. The first enabling m-commerce technologies were presented through Wireless Application Protocol (WAP) and i-mode mobile Internet service. This technology cemented the way of m-commerce. The future of m-Commerce seems extremely bright because several experiments are going on to introduce the upgraded version of mobile likely to emerged with the evolution of 4G mobile technology. e-commerce has gone downwards to hell.characteristics. Nokia has first introduced m-commerce application software Nokia toolkit version 4. which has strongly developed on 3G-phone technology. WAP builds on digital phone technology and first emerged on 2. The user can change the service of any financial institute or banks if gets better product and service or user is unsatisfied with the service of the subscribing company. But the evolution of mobile commerce has again worked as ambrosia for them. it is yet in the initial stage and can be further expand in to all the fields. stock updates. can hire carrier/courier services and above all could also pay the dues related to it through mobile. Information Sector After the bursting of dotcom bubble. It initially begins with the use of wireless POS (Point Of Sale) swipe terminals and has since then made its way into cellular phones and PDA's (Personal Digital Assistants). In the IT field. Several business dealings no matter how big or small are being finalized on the mobile phone. A separate sector has been evolved to exercise on this field for the IT experts.5 G phone technology that allowed users to browse the Internet. which have nurtured most from mobile commerce. mobile commerce has been used massively to deliver financial news. History of m-commerce Despite of huge popularity of mobile commerce. Service / Retail sectors Service and Retail sectors are also among the leading sectors. M-Commerce has proved a major boon for these sectors. The assumption of mobile commerce is not so young as it mushroomed so early from adopting this technology.

Challenges faced by Mobile Commerce in India 1. has already started offering all its services through mobile phones (called mobile banking) since January 2008. India’s largest private bank. customers in India have the hand-held convenience of using their mobile phones for making payments for taxi fares and recharging prepaid phone cards. banks and payment service providers to offer more products and secure transactions through mobile networks. Mobile Commerce . Mobile Commerce is open to almost everyone with a cellphone and mobile connection. While eCommerce is limited to PC users only. With mobile commerce offerings expanding. Increased mobile penetration and use of GPRS on handsets has resulted in the digital downloads market to cross Rs.55 Billion by end of March 2008. Emerging Services of Mobile Commerce in India 1. Standard Chartered bank has launched a service that enables money transfer from any ATM to any mobile phone across the country. Innovative solutions for daily use such as payment of auto or taxi fares 4. 5. Feasibility studies are being conducted to offer mobile commerce to microfinance firms to enable them collect payments from remote areas. Security of transactions through Mobile Commerce: The biggest challenge to Mobile Commerce is the security of payment through mobiles.2. ICICI Bank Ltd.Growth of Mobile Commerce in India Mobile Commerce services are evolving rapidly in India due to the coming together of mobile service providers. Monetary transfers or transactions through mobile phones are found to be much cheaper than traditional bank transfers as the transaction costs are much lower in the former. Using these two the recipient can withdraw money from the bank’s ATM’s. 2. The recipient receives a pin number on his or her mobile phone and the sender has to convey the order number to the recipient. Inter-bank transfers services are also on the anvil. 3. Mobile Commerce is expected to grow because the mobile usage and ownership penetration is more than 4 to 5 times than a PC and growing at a very fast rate.

Improved processes have reduced the production and transaction costs. the Reserve Bank of India issued guidelines for mobile banking transactions in October 2008. thereby increasing overall profitability. till now. A study conducted by Informa Telecoms & Media reveals the growing number of mobile subscriptions in India. followed by point-to-point retail services. particularly in computers and internet. Mobile Payment Service Providers like Obopay Inc and mChek India Payment Systems Pvt. Whereas number of active mobile subscriptions in the year 2000 was 3. The expanding wireless and mobile networks have extended the scope of eCommerce to another dimension called mCommerce. These guidelines permit banks to provide mobile banking transactions and to mandate that all transactions have to originate from one bank account and terminate into another bank account. Ltd are planning on services that would work within the RBI prescribed guidelines like bank account-linked services and mobile debit cards.Services like the mobile wallet which helps make payments at retail outlets through text messages have been hindered by the guidelines issued by the Reserve Bank of India due to security concerns. RBI has provided approval to 32 banks to provide mobile banking services in India. it grew to 508 million in 2008 and is projected to become 1. RBI Guidelines for Mobile Commerce Keeping pace with technological advancements and customer needs. Issues with Mobile Banking . The mobile subscription penetration rate is expected to be 75% by the year 2011. The State of the mCommerce or Mobile Commerce Industry in India eCommerce has arisen as a consequence of technological progressions. due to ease of use and improved connectivity. Mobile phone usage has picked up to a great extent.2 million. and accurate. 21 banks have started this service and the transaction volume is lower than the expected volume.159 billion in the year 2013. 2. quick. Indians are good adaptors to mobile services. efficient. The other challenges faced by Mobile Commerce are – the speed of GPRS and user interfaces. Though Indians are extensive users of mobile phones. mCommerce is still in its infancy in India and the initial thrust is expected from banks. However. eCommerce has led to an increase in productivity and higher customer satisfaction levels due to business processes becoming more simplified.

Banks feel that low ticket transactions do not need end-to-end encryption. • • Implementation of mCommerce is costly because of the end-to-end encryption that is needed.000. Currently.000 users. which have been pointed out by these banks. These issues are still being examined by the RBI. Private banks like ICICI and Standard Chartered. . ICICI bank currently has 8 million registered customers for mobile banking. the transaction limit of Rs 5000 needs to be revised upwards to Rs 10.Mobile banking transactions have been low because of the following reasons. HDFC. Kotak Mahindra also provide mobile banking facilities to their customers. Banks feel that this limit does not support transactions like purchase of airline tickets. whereas Kotak Mahindra has 52.

and legal framework governing the flow of trade. It was also found that rural Indians are actively involved in online shopping. Issues with eCommerce – Payment and Dispatch of Goods One of the major factors for eCommerce not taking off in India as expected. To address this situation. the government has set up National Task Force on Information and Technology. the loop-holes are being plugged. India has taken a number of steps to facilitate eCommerce transactions and steadily. is the dispatch of goods on time and payment issues. online payments are credited to the intermediaries like paypal. As per the RBI directives. towns. The study reveals that 181 rural towns.eCommerce Industry in India – Future Potential and Growth India realizes the importance of eCommerce. the payment will be credited directly to the merchants and not the intermediaries. However. there has been an increase in the number of Internet Service Providers following a growth in the Telecommunication sector. All 28 states and 7 Union Territories have witnessed eCommerce transactions. And to address trade related issues in eCommerce. still there is an underlying problem of fixing responsibility for the goods delivered and the payment. Online retailers do not take full responsibility of a clear e-transaction. India has 2471 eCommerce hubs. two requirements need to be catered to: physical connectivity and technology. eCommerce in Rural India With internet reaching a wider base of population. According to the eBay Census Guide 2009. including Andhra . villages. Online buying and selling trends have been observed in Bundi (Rajasthan). Thevaram (Tamil Nadu). To ensure a better connectivity. For adopting eCommerce. the customer problems still persist. Mostly. With this arrangement. eCommerce transactions happen over a vaster segment of Indian society. These hubs are spread over the entire country and cover cities. the rural internet users have outgrown the number of urban internet users. According to the survey conducted by Internet and Mobile Association of India (IAMAI). as this is an emerging practice of businesses in today’s world. So. money will be available to the merchant within 3 days of transaction. Online shopping is underway in 747 rural towns of India. This will expedite shipping of goods to the customer on time. who transfer these payments to merchants. However. Tezpur (Assam). Merchants start order processing and shipping only after the receipt of money through Credit Card or online banking payment. Reserve Bank of India has issued new norms for facilitating eCommerce transactions. and smaller towns.

Pradesh. The rest of the segments. These hubs cater to online selling in India and world wide.com. The Online Travel Industry is very well developed and is booming largely due to the Internet-savvy urban population. Indiamatrimony. The online community is growing by leaps and bounds as an increasing number of consumers have started transacting online because the initial fears and apprehensions are being laid to rest.com.com and Makemytrip. B2C (Business to Consumer). Tamil Nadu.com.com is a shopping portal and is India’s answer to eBay. C2C (Consumer to Consumer). and Gujarat are active entrepreneurship hubs. India has its share of success stories in the B2C segment in the form of Indiatimes. MagicBricks. Rediff. categorized under online non-travel industry. Bazee. Research studies have indicated several factors responsible for the sudden spurt in growth of eCommerce in India such as: • • • • • Rapidly increasing Internet user base Technology advancements such as VOIP (Voice-over-IP) have bridged the gap between buyers and sellers online The emergence of blogs as an avenue for information dissemination and two-way communication for online retailers and eCommerce vendors Improved fraud prevention technologies that offer a safe and secure business environment and help prevent credit card frauds. Maharashtra.com. Kerela. which is a portal for employment.com. it seems set to grow globally.com. ebay. include e-Tailing (online retail).com. identity thefts and phishing Bigger web presence of SME’s and Corporates because of lower marketing and infrastructure costs. . G2B (Government to Business) and G2C (Government to Citizens) segments are showing rapidly increasing activity over the past few years. Shaadi. eCommerce in India: Overview and Reasons for Growth India’s eCommerce industry is on the growth curve and experiencing a spurt in growth. Monster. Successful eCommerce Ventures Few successful ventures in eCommerce include: Naukri. These and such other portals are generating a lot of interest and increasing transaction traffic. Though eCommerce took a beating in the dotcom bust. online classifieds and Digital Downloads (still in a nascent stage). The global revival of eCommerce is having a ripple effect in India too where the B2B (Business to Business).com etc.com has simplified stock trading. Smaller businesses have jumped onto the bandwagon by offering products and services online and have successfully carved out niches for themselves. ICICIDIRECT.

Ease of Internet access and navigation are the critical factors that will result in rapid adoption of Net commerce. Safe and secure payment modes are crucial too along with the need to invent and popularize innovations such as Mobile Commerce.• • Longer reach – Consumers in the Tier II & Tier III cities are fast realizing the potential of the Internet as a transacting medium The young population find online transactions much easier eCommerce offers several benefits to businesses • • • • Easy reach to a fast growing online community Unlimited shelf place for products and services Fuse the global geographical and time zone boundaries Helps reach national and global markets at low operating costs There is a growing awareness among the business community in India about the opportunities offered by eCommerce. .

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