E-Commerce Applications Mobile commerce

Ecommerce Applications 2009/10

E-Commerce ApplicationsMobile commerce

Session 7 2


Overview

– Mobile computing technologies – Mobile commerce and markets– Mobile commerce applications– Security– Case studies

Session 7 3


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.

Session 7 4


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

Session 7 5


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

Session 7 6


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.

Session 7 7


Users in Mio.

Sources: NOKIA, Forrester

200

400

600

800

1.000

1.200

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Mobile phone users

Internet Access with PCs

Connected mobile devices

Market Potential for m-commerce

0

More mobile Devicesconnected to the

Internet than PC´s!

Session 7 8


More than 21 million Europeans will take up mobile banking (Datamonitor)

m-Commerce growth

0.6

1.7

3.5

0

1

2

3

4

$ B

illio

n

US Europe Japan

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)

Session 7 9


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

Session 7 10


M-Commerce Applications

Mainframes

PC’s Internet / E-commerce M-commerce

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Corporate Data Processing

- general ledger- banking- Airline bookings- ....

- Terminals- VMS- 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

- TCP/IP- HTML- Java- ...

M-commerce

?

-GSM-GPRS/UMTS - - Blue Tooth- W-LAN

Session 7 11


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

Session 7 12


Credit card fraud

Source: ECR/Mintel (2001)

Also check out www.apacs.org.uk

Session 7 13


72% of UK credit card holders have never made a purchase online (NOP Mintel)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

Session 7 14


Security and on-line paymentsSecurity and on-line payments

Card number easy to copy, card easy to skimCard number easy to copy, card easy to skimAuthenticationAuthentication

Riskreduction

Riskreduction

Authorisation Signature, cardholder not present Signature, cardholder not present

IP networkIP network

Session 7 15


M-commerce approach to securityM-commerce approach to security

interactive application asks for the authorisation by PIN code interactive application asks for the authorisation by PIN code

Mobile network recognises caller IDMobile network recognises caller ID

GSM, banking systemGSM, banking system

AuthenticationAuthentication

Riskreduction

Riskreduction

Authorisation

Session 7 16


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

WeaknessesWeaknessesStrengthsStrengths

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

Session 7 17


Case study: M-Pesa

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

Only available to Vodafone users

Person-to-Person partially supported

WeaknessesWeaknessesStrengthsStrengths

Micropayment service launched in UK in February 2007

Micropayments of 5p to £5 will be charged to users phone bill

Fully functional Internet, WAP and real world payments launched

Session 7 18


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

Session 7 19


Summary

– Mobile computing technologies – Mobile commerce and markets– Mobile commerce applications– Security– Case studies

E-Commerce Applications Mobile commerce

Documents

Transcript of E-Commerce Applications Mobile commerce