The document provides an overview of mobile commerce (m-commerce). It defines m-commerce as conducting commerce using mobile devices such as mobile phones or PDAs. The document then discusses the m-commerce framework and various applications of m-commerce like mobile financial applications, mobile advertising, and product location/shopping. It also describes different models of mobile payment and security issues in m-commerce, highlighting the need to protect information, integrity, and identification. Finally, the document briefly discusses some limitations of m-commerce.

1. Guided by: Prepared by:
Prof. Jitendra Bhatiya Nayan Khanpara
(09bce021)

2. OUTLINE
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3. M-commerce Overview
 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."

4. M-commerce Framework
 It will allow developers and providers to strategize and effectively
implement mobile commerce applications.

5. asses of m-com er ce appl i cat i ons
m
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 certain
items from a mobile device
Mobile inventory management (MIM) Location tracking of goods,
boxes, troops, and people
Proactive service management (PSM) Transmission of information
related to aging (automobile)
Wireless business re-engineering Improvement of business services
(WBR)
Mobile auction, entertainment and Services for a customers to
other services buy or sell certain items

6. Early content and applications have all been geared around
information delivery but as time moves on the accent will be on
revenue generation.
Entertainment Communications
• Music • Short Messaging
• Games • Multimedia
Messaging
• Graphics
• Unified Messaging
• Video
• e-mail
• Chatrooms
Transactions M- commerce • Video - conferencing
• Banking
• Broking Information
• Shopping • News
• Auctions • City guides
• Betting • Directory Services
• Booking & • Maps
reservations • Traffic and weather
• Mobile wallet • Corporate information
• Mobile purse • Market data

7. 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)

8.  Premium SMS based transactional payments
The 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 Billing
The 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.

9. Payment via Internet Payment Provider
WAP
GW/Proxy
Browsing (negotiation)
Merchant
MeP
GSM Security SSL tunnel
User
SMS-
C IPP
Mobile Wallet
CC/Bank

10. PAYMENT VIA INTEGRATED PAYMENT SERVER
WAP
GW/Proxy
Browsing (negotiation)
Mobile Commerce
Server
Merchant
GSM Security
User SSL tunnel
SMS-
C ISO8583 Based
CP
VPP IF
CC/Bank
Mobile Wallet
Voice PrePaid

11. 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.

12.  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.

13. Some on-line payment service providers

14. 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 PayPhrase
It allows customers to check out by typing their PayPhrase and their
PIN without having to enter any shipping or credit card information.

15. 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

16. Mobile Banking
Mobile 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:

It emerges when a traditional bank uses non-traditional low-cost delivery
channels to provide banking services to its existing customers. Ex.ATMs

It 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.

It is where a bank has a limited role in the day-to-day account
management.

17. Mobile Banking Services
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

18. 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

19. 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.

20.  The identification of business information
Identification 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.

21. Security Model Of Collaborative M-commerce

22.  Collaborative database layer
Collaborative 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 layer
Its 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 layer
Together 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.

23. 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

24. Limitations(Conti..)
 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

25. 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.

26.  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.

27.  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.

28. 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

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30. Thank You