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Mobile Payments

Mobile commerce, also known as m-commerce, allows users to conduct commercial transactions using mobile devices. It has grown rapidly due to increases in internet users, technology maturity, and advancements in wireless communication. There are three main types of m-commerce transactions: carrier billing, credit cards, and financial services. M-commerce applications include mobile banking, advertising, inventory management, shopping, and entertainment services. Emerging markets like Pakistan are rapidly adopting m-commerce as cellular providers launch new applications.

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219 views36 pages

Mobile Payments

Mobile commerce, also known as m-commerce, allows users to conduct commercial transactions using mobile devices. It has grown rapidly due to increases in internet users, technology maturity, and advancements in wireless communication. There are three main types of m-commerce transactions: carrier billing, credit cards, and financial services. M-commerce applications include mobile banking, advertising, inventory management, shopping, and entertainment services. Emerging markets like Pakistan are rapidly adopting m-commerce as cellular providers launch new applications.

Uploaded by

adnan67
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© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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E-COMMERCE

Section -B

MOBILE COMMERCE
Group members:
AFFANUL HAQ SIDDIQI
AHSAN ALI
ABUBAKAR IQBAL
SALMAN SAMNANI
MOBILE COMMERCE?

Mobile Commerce, also known as M-Commerce or m-


Commerce, is the ability to conduct commercial activities,
using a mobile device, such as a mobile phone, a Personal
digital assistant (PDA), a Smartphone, or any other
emerging mobile equipment such as dash top mobile
devices, etc.
Due to the astronomical growth of the
Internet users, maturation of the Internet
technologies, realization of the Internet's
capabilities, the power of electronic
commerce, and the promising
advancement of wireless communication
technologies and devices, mobile
commerce has rapidly attained the
business forefront.
THERE ARE THREE BASIC TYPES
OF
M-COMMERCE TRANSACTIONS;

Carrier bills
Credit cards
Financial services
History of M-Commerce
 The first mobile phone-based banking
service was launched in 1997 by Merida
Bank of Finland, using SMS facility.
 Mobile-commerce-related services
spread rapidly in early 2000. Norway
launched mobile parking payments.
Austria offered train ticketing via mobile
phone device. Japan offered mobile
purchases of airline tickets!
M-Commerce; Pakistani perspective
 Pakistan is emerging as a global capital of
Telecommunication.
 We are the world’s fastest growing mobile
market in terms of subscriber base.
 Although currently Pakistan lacks
advanced mobile applications compared to
Europe, North America, Japan and Korea,
a number of cellular players are rapidly
launching sophisticated mobile
applications.
Products/Services & Applications
 Mobile Brokerage (Example; Stock markets)
 Mobile Purcahses (Example; theme
downloads)
 Mobile marketing & advertising (Example;
product related SMS)
 Mobile Banking (Example; MCB mobile
services)
 Mobile Info (Example; Info services on cell
phones)
CLASSES OF M-
COMMERCE
APPLICATIONS
 Mobile Financial Application
(B2B, B2C)

 viewing account balances

 available balances

 scheduling internal transfers


 Mobile Advertising
(B2C)

 Closely related to online/internet


marketing

 Uses Demographic of customers


Mobile Advertising Operation
1) Co. submit banner
as to mobile
advertising network

2) Selects location, time


& category as the ad
promotion crireria

3) Mobile advertising
network submit ads to
multiple mobile
networks
4) mobile system 5) Determine which
operation review device can respond
capabilities of mobile
to the mobile ads
devices in their network
 Mobile Inventory Management
(B2C, B2B)

 Location tracking of goods, boxes

 Perform physical counts

 RFIDs (Radio frequency identification)


 Product locating and Shopping
(B2C, B2B)

 Locating/ ordering certain items from a mobile


device

 Time Saving as well as convenient for customers

 i-phone aisle411
 Mobile Entertainment Services
(B2C)

 Video-on-Demand and other services to


a mobile user.

 Downloading and playing music using a


mobile device.
 segment 1 must be subset of
mobile commerce, which involves
exchanges of monetary value and
interaction with service providers.

Segment 2 covers mobile


entertainment services which utilize
wireless telecommunication networks,
but do not incur a cost upon usage and
do not interact with service providers.
Segment 3 involves mobile
entertainment which does not require
wireless connection and transaction of
an economic value. For example, one
may play preinstalled single player
games on mobile phone
MOBILE BANKING

 Term used for performing balance checks,


account transactions, payments, credit
applications etc. via a mobile device such
as a mobile phone or Personal Digital
Assistant (PDA)

 Mobile banking has until recently (2010)


most often been performed via SMS or the
Mobile Web.
CONCEPTUAL MODEL
 Mobile Banking refers to provision and
availment of banking- and financial
services with the help of mobile
telecommunication devices.

 The scope of offered services may include


facilities to conduct bank and stock market
transactions, to administer accounts and
to access customized information.
MB Business Model
 Bank-focused model

 Bank-led model

 Non-bank-led model
MOBILE BANKING – REGULATORY PERSPECTIVES

 One-to-One Model

 One-to-Many Model

 Many-to-Many Model

 Alternate Channels
Challenges for a Mobile Banking Solution

 Handset operability

 Security

 Scalability & Reliability

 Application distribution

 Personalization
SERVICES

 Account Information

 Payments, Deposits
Withdrawals and Transfers

 Investments

 Support

 Content Services
MOBILE PAYMENTS
MOBILE PAYMENTS

 It defines mobile payments as


“payment for goods or services with
a mobile device such as a phone,
Personal Digital Assistant (PDA), or
other such device”.
A consumer can use a mobile phone to pay for a
wide range of services and digital or hard goods
such as:

 Music, videos, ringtones, online game


subscription or items, wallpapers and other
digital goods.
 Transportation fare (bus, subway or train),
parking meters and other services
 Books, magazines, tickets and other hard goods.
Models for mobile payments:
 Premium SMS based transactional
payments
 Direct Mobile Billing
 Mobile web payments
 Easy paisa best example of mobile
payments
Premium SMS transactional payments

 The consumer sends a payment request


via an SMS .
 The merchant involved is informed of
the payment success and can then
release the paid for goods.
Payment process:
 1. User send SMS with Keyword and
unique number to a Premium [Code].
 2. User enters the PIN, authenticating
THE PIN (User billed via the short code
on receipt of the PIN)
 3. Finally user enters PIN to get access
to content or services.
Examples:

 Mobile payments in China: emergence of a mega-market


China will soon be the largest mobile payments market in the world.
China's mobile payments market is expected to soar 48% year on year to
410 million
 
 SUBWAY to use mobile payments
Doctor's Associates, the parent company of SUBWAY, the largest
single-brand restaurant chain in the world

MOBILE REMITTANCE
 
 Western Union, MTN group agree to introduce cross-border MMT

MTN and Western Union have announced a commercial agreement to


introduce international mobile remittance services in the 21 countries
where MTN operates
Mobile Billing

 This type of mobile payment method, which is


extremely prevalent and popular in Asia,
provides the following benefits:

 Security - Risk management engine prevents


fraud.
 Convenience - No pre-registration and no
new mobile software is required.
 Easy - It's just another option during the
checkout process.
 Fast - Most transactions are completed in less
than 10 seconds.
Mobile web payments (WAP)

 Follow-on sales where the mobile web


payment can lead back to a store or to other
goods the consumer may like.

 High customer satisfaction from quick and


predictable payments

 Ease of use from a familiar set of online


payment pages
 
Practical Example:

 In 2008, only 10% of the Pakistan knew about the financial


services available in mobile platform.
 Actual usage of any of these services was by less than 1%.

 We know that the mobile payment services in Pakistan have


been the hottest service in the last year or so. Aamir
Ibrahim, Chief Strategy Officer of Telenor Pakistan shared a
presentation on the topic of Telenor’s experience with
Mobile 2.0 initiatives and in particular with EasyPaisa. The
vision for Easy Paisa is to bank the unbanked. The progress
that EasyPaisa has made in 6 months is quite impressive:
over 600,000 utility bill payments have been made and
money transfer of about Rs.1 billion has been completed.
Conclusion:
 As technology continuous to progress
and new systems are being created,
mobile commerce is on rapid growth and
providing facility to customers.
 As with any new technological service,
work out all of the limitations and perfect
the mobile commerce computing
environment.

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