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INTRODUCTION
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.
"Mobile Commerce is the use of information technologies and communication technologies for the
purpose of mobile integration of different value chains an business processes, and for the purpose of
management of business relationships.”
M-commerce is a term that is used to refer to the growing practice of conducting financial and
promotional activities with the use of a wireless handheld device. The term m-commerce is short for
mobile commerce, and recognizes that the transactions may be conducted using cell phones, personal
digital assistants and other hand held devices that have operate with Internet access. While still in its
infancy, the concept of m-commerce has been refined in recent years and is beginning to become more
popular.
Mobile Devices
M-commerce is not just about using mobile phones as end user devices. The following list gives an
overview of different kinds of mobile devices.
Mobile phone
PDA (Personal Digital Assistant)
Smart phone-the smart phone combines mobile phone and PDA technology into one device.
Laptop
Earpiece (as part of a personal area network)
Limitation of M-Commerce
Despite the fact that the use of M-Commerce is growing rapidly there are still limitation that causes
limited use of M-Commerce:
1. Bandwidth: The limited bandwidth that can be support by mobile devices currently is very small
which causes web developers to reduce the usage of rich data.
2. Screens Size: The screen size of a mobile device is very limited. This also limits the viewing
capacity of the user.
3. Less Powerful Processors: Due to the slow processing speed web developer would have to use
server side scripting which will bring more load to the servers.
4. Cost of Wireless Connection: As wireless connection of a mobile device to the internet is still a
relatively new technology the cost of using such connection is also expensive as the technology is
still under heavy development
5. Additional Security Threats: The communication over the air interface between mobile device
and network introduces additional security threats.
6. Heterogeneous Devices: The heterogeneity of devices, operating systems and network
technologies is a challenge for a uniform end user platform. For this reason, standardization
bodies consisting of telecommunication companies, device manufacturers and value added service
providers integrate their work
7. Mobile devices are more prone to theft and destruction.
E-commerce is available to only those places where we have net connectivity, but with m-commerce
we are free from all such boundaries.
Video conferencing has become possible with m-commerce even in places where there is no internet.
E-commerce not only needs internet but also electricity whereas there is no such requirement with m-
commerce.
M-COMMERCE APPLICATIONS
The general m-commerce applications are:
1. Mobile ticketing
Tickets can be sent to mobile phones using a variety of technologies. Users are then able to use their
tickets immediately by presenting their phones at the venue.
Tickets can be booked and cancelled on the mobile with the help of simple application downloads or by
accessing WAP portals of various Travel agents or direct service providers. Mobile ticketing for airports,
ballparks, and train stations, for example, will not only streamline unexpected metropolitan traffic surges,
but also help users remotely secure parking spots (even while in their vehicles) and greatly facilitate mass
surveillance at transport hubs.
2. Mobile vouchers, coupons and loyalty cards
Mobile ticketing technology can also be used for the distribution of vouchers, coupons and loyalty cards.
The voucher, coupon, or loyalty card is represented by a virtual token that is sent to the mobile phone.
Presenting a mobile phone with one of these tokens at the point of sale allows the customer to receive the
same benefits as another customer who has a loyalty card or other paper coupon/voucher. Mobile delivery
enables:
economy of scale
quicker and easier delivery
effective target marketing
privacy-friendly data mining on consumer behaviour
environment-friendly and resources-saving efficacy
3. Content purchase and delivery
Currently, mobile content purchase and delivery mainly consists of the sale of ring-tones, wallpapers, and
games for mobile phones. The convergence of mobile phones, mp3 players and video players into a single
device will result in an increase in the purchase and delivery of full-length music tracks and video.
Download speeds, if increased to 4G levels, will make it possible to buy a movie on a mobile device in a
couple of seconds, while on the go.
4. Location-based services
Unlike a home PC, the location of the mobile phone user is an important piece of information used during
mobile commerce transactions. Knowing the location of the user allows for location based services such
as:
local maps
local offers
local weather
people tracking and monitoring
5. Information services