Mobile Commerce (m-commerce)

1. Mobile Commerce(m-commerce) Jerryon Roberts INBS 510 Introduction to Internet Business Systems 11/5/02

2. Definition of m-commerce • m-Commerce stands for Mobile Commerce,which is a revolutionary system which allows you to pay for goods and services simply by using a mobile device. • M-Commerce is also the use of mobile devices to communicate, inform, transact and entertain using text and data via a connection to public and private networks.

3. Examples of mobile devices. • Cellular Phones. • PDA’s - Personal Digital Assistant. • Portable Bar Code Scanners • Pagers

4. Picture of a modern day cellular phone. • This is a cell phone from NOKIA that allows remote connect to internet.

5. Picture of a PDA • This PDA from Zire allows its user to check email and it also allows remote connection to the internet.

6. Picture of a portable bar code scanner • This bar code scanner allows its user to scan a bar code and check the price of the item against those listed on a particular web site.

7. Picture of a modern day pager • This pager from MOTOROLA allows its user to check email and it also allows remote connection to the internet.

8. Innovations leading the way in m-commerce development • There have been a number of initiatives announced to encourage the use of mobile technology and to drive the adoption of open standards in this field.  • There is the Mobey Forum, Radicchio, SIM Application Toolkit (SAT) Forum, Visa’s 3D-Secure,eSign and Fundamo. • In June 2002, Sprint announced a new standards and marketing entity for mobile payments network with eONE Global.

9. Mobey Forum • The Mobey Forum brings together the substantial expertise of the world's leading on-line financial institutions and the leading companies in mobile Internet technologies such as Wireless Application Protocol (WAP).  • The leading mobile phone manufacturers, Ericsson, Motorola and Nokia, acknowledge that the Mobey Forum will play a valuable part in the development of online wireless financial services.  The recently announced Mobile Electronic Transactions initiative (MeT) between the three leading phone manufacturers will support development in this crucial area of m-commerce.

10. Radicchio • Radicchio is a new global initiative to define a standard security platform for mobile e-commerce using Wireless PKI (Public Key Infrastructure). Mobile commerce on WAP-phones is likely to be secured by Java and Wireless Identity Modules (WIMs) using PKI.

11. SIM Application Toolkit (SAT) Forum • There is also the SAT (SIM Application Toolkit) initiative, part of the ETSI/SMG standard for Value Added Services and m-commerce using GSM phones to do the transactions.  • You will be able to check your bank account and pay bills using your SIM Toolkit-enabled phone with an appropriate SIM Toolkit-specific SIM card which will provide much of the intelligence to conclude a transaction over GSM.

12. SIM Application Toolkit (SAT) Forum Continued • Also look out for the Wireless Internet Gateway (WIG) which gives WAP and SIM Application Toolkit (SAT) terminals access to WML-based applications. • It brings WAP to legacy terminals via SMS and supports end-to-end security, push and location-based services. A SIM-based WML browser not only lets a GSM operator deliver web-style content to the current large installed base of mobile phone subscribers, but it offers increased security inherent in the SIM´s Smart Card technology.

13. Visa’s 3D-Secure • Visa's 3D-Secure is Visa International's new global specification that ensures the security of Internet payments made over mobile phones. • Developed in conjunction with some 15 major industry players, the specification is part of Visa Authenticated Payment, a comprehensive e-commerce program designed to ensure safe and secure online payment transactions.

14. Visa’s 3D-Secure Continued • The Mobile 3-D Secure specification extends payment authentication initiatives into mobile commerce, enabling Visa card issuers to validate the identity of their cardholders in real time. • It ensures that payment data sent over open networks is not compromised and allows consumers to actively protect their Visa accounts from unauthorized use when shopping on-line over mobile devices.

15. eSign • eSign is an initiative between leading companies in the mobile marketplace to make mobile digital signatures. The consortium aims to develop a uniform application interface as the de-facto standard for the integration of the mobile phone into the Internet world and to use the mobile phone for implementing mobile digital signatures. • The MEST (Mobile Electronic Signature) Consortium is an association of companies active in the internet and mobile phone sectors. Its objective is to develop a secure and universal application infrastructure capable of employing mobile digital signatures.

16. Fundamo • Fundamo is an initiative backed by Sanlam, which has developed the capability to deliver a working mobile payment solution to cellular networks using existing Phase 2+ compliant technology. • This means the Fundamo solution can be used on both WAP handsets as well as Phase 2+ compliant handsets (most of the cell phones sold today).

17. Companies making great strides in m-commerce development and innovation • Air2Web is one company that making great strides in the development and innovation of m-commerce. • Air2Web’s “Mobile Internet Platform”is perfect for companies that must deploy applications to a wide range of wireless mobile devices, but that have little or no control over what those devices are or what operating systems they run.

18. Air2Web Continued • In true write-once deploy anywhere fashion, Air2Web insulates developers from the specifics of any device, OS, presentation technology, and wireless network by letting those developers write the business logic once in XML instead of a separate time for each target platform. • Air2Web accomplishes this by tracking the features specific to: each of the supported platforms, each of the device types that support those platforms (for example, every device that supports J2ME and the differences between them), and each of the wireless networks. Company officials say they have tracked about 800 wireless devices so far, and that Air2Web's middleware accounts for every one of these device-specific dependencies.

19. Air2Web Continued • Before products like this came along, developers would have to write code that was not only specific to such platforms as WAP, PalmOS, J2ME, PocketPC, RIMOS and the devices that run them, but also to the networks to which those devices are attached. For example, SMS messages--a medium that Air2Web works with--are handled and formatted differently from one wireless carrier to the next.

20. Air2Web Continued • How does Air2Web know what kind of device is entering the network? • That information has to be collected when the service is provisioned to a particular user. Therefore, in situations where purely anonymous and random access is the norm, companies might have to set up a registration process to capture the device information. Air2Web's tools provide a menu-driven system that enables users to self-select their target devices and the networks to which those devices are attached.

21. Air2Web Continued • Logic-based applications aren't the only ones that can benefit from Air2Web's middleware. Air2Web has canned connectors that, company officials claim, make mobile deployment of Domino or Exchange-based e-mail a snap. The connector for Exchange works through Microsoft's Outlook Web Access technology; the connectors for Lotus work directly with Domino server. • The company offers several licensing schemes. For example, customers like UPS have asked Air2Web to host the application for them (so UPS customers can call in and track packages) and Air2Web charges by the number of interactions with end users. Companies with a finite number of users can get licensed by the user and install the technology themselves. Typical engagements run from $10,000 to $750,000, depending on the amount of consulting services required. For those companies rolling out applications to multiple mobile devices, especially in environments where there is limited control over the client type, Air2Web's technology could dramatically.

22. Companies making great strides in m-commerce development and innovation continued • 3G is another company that is enhancing and innovating the m-commerce world. • 3G Location based services, m-commerce ( & mobile micro payments), and mobile online gaming infotainment are about to radically enhance the Internet. This will make 3G Smart Phones, or mobile internet devices, more ubiquitous and increase usage dramatically propelled by SMS, MMS and m-commerce applications anywhere and from anyplace. • Tremendous demand  for 3G m-commerce and mobile internet devices will be seen in Korea, Japan, China, South  Korea, Singapore, Hong Kong and Malaysia

23. 3G Continued • 3G is  a  key  step in the evolution to a Mobile Internet because the technology provides significant gains in network capacity and speed which will enable advanced video and multimedia services in addition to rapid deployment of m-commerce capabilities through network operators and their banking affiliates.

24. Companies making great strides in m-commerce development and innovation continued • Telstra is a mobile phone company that making great innovations that will be very beneficial to the future of m-commerce. • Currently you can pay for soft drinks and parking using your Telstra mobile phone and businesses and consumers can benefit from the convenience of Mobile EFTPOS.

25. What is Mobile EFTPOS? • Using Telstra Mobile GSM technology, businesses can now get paid on the spot, wherever they are. Terminals can be fitted to mobile phones to allow credit, debit and charge card transactions to take place almost anywhere within the Telstra Mobile GSM network.

26. Who is Mobile EFTPOS for? • Any business requiring payments away from a fixed office or store. The possibilities are many and the following are just some: • Trades People - such as builders, plumbers • Home Services • Delivery Services - food, clothing, goods • Market Stalls • Drive-through’s • Restaurants (pay at your table) • Sales Stands, such as in Department Store, • Exhibitions, Trade Shows • Sporting events • Taxi Services

27. How can it benefit a business? • Allows businesses to accept payments right away in all sorts of places • Improves customer service , as it offers an alternative payment method to cash on delivery • Reduces administration time and the security of handling cash • Connection to your bank's payment processing system is secure and functions in exactly the same way as an EFTPOS transaction over a fixed line • Smaller businesses can use the mobile terminal to free up their fixed line for phone and fax calls

28. How can it benefit a business? (continued) • Save on installation costs, as there is no need for additional fixed lines or to connect terminals to fixed lines • It's easy to move or relocate terminals • Easy to increase your EFTPOS capacity at short notice, as no cabling is required • Use your own bank: Telstra has Mobile EFTPOS arrangements with most major banks, including the Commonwealth Bank, National Australia Bank, St George and Westpac.

29. Examples of how Mobile EFTPOS is being used • A national supermarket chain with an online ordering service found that many people did not want to pay for their groceries online. Customers who are accustomed to EFTPOS in stores, can now pay through the Mobile EFTPOS service when taking delivery of their groceries. • A well-known brewery has taken their drive through bottle shop service to the next level. Customers can sit in the comfort of the their car, place their order and then pay using the Mobile EFTPOS service. Warm, happy customers can continue their journey. • Taxis around the country are starting to use the new Mobile EFTPOS service. Customers get the convenience of EFTPOS service and taxi drivers the added benefit of mobile phone service in their device. • Outdoor events such as sporting events are taking advantage of Mobile EFTPOS service to take payment for merchandise.

30. What Mobile EFTPOS units are available? • To use Mobile EFTPOS you will need a mobile service (GSM) from Telstra and a Merchant Agreement with your bank to arrange deposits of electronic funds to your bank account, just as you do with fixed line EFTPOS.While there are 2 options with Mobile EFTPOS units, your bank will supply only one. They will either supply the all-in-one Ingenico device or the KeyCorp K78 device. Telstra will activate the SIM card for the Ingenico device and supply an Ericsson handset for the Keycorp device.

31. The Ingenico device • EFTPOS and mobile phone in one • Can be used for Mobile and fixed line • Can make voice calls • Telstra SIM required

32. The Keycorp device • Keycorp K78 Terminal (cradle) • Separate mobile phone • Telstra SIM required • Must be an Ericcson Mobile • Ericsson models compatible with the Keycorp device include the Ericsson T39 and T6

33. The Future of m-commerce

34. Research predictions • Research experts have predicted that : • Number of mobile smart phones in use is expected to reach one billion worldwide by 2003. • Global mobile data market will reach $450 billion by 2010. • Access to the Mobile Internet by 2002, will be more than 100 million mobile internet devices • Cost of mobile spectrum licenses in Europe alone will be more than 100 billion US dollars.  • Cost to upgrade  Europe's  existing  digital  mobilephone  networks will cost a further 100 billion US dollars. • The phenomenal growth & unprecedented expansion of the  mobile industry and m-commerce applications will peak in 2006-2007.

35. Research predictions (continued) • Research experts have also predicted that : • The phenomenal growth & unprecedented expansion of the  mobile industry and m-commerce applications will peak in 2006-2007. • Estimated cost to implement 3G in the U.S. will be a  staggering $60 billionwith the m-commerce market expected to be very strong there. • The European  market for  mobile internet  portals and m-commerce will  be worth 14 billion pounds by 2005 and 63 billion pounds by 2010

36. My Predictions for the future of m-commerce

37. Personal Predictions for the future of m-commerce • M-commerce can and will become very effective.  • M-commerce will be used to pay for goods and services such as: travel and transit, taxis, parking meters, gasoline, fast food, restaurants, groceries, vending machines, stock trades and even flowers or candy for that special someone. • Smart Phones will be the tool which will facilitate this local or remote m-commerce action making it safe and encryptically secure, user and password protected on a tiny SIM chip. • M-commerce will significantly enhance personal and business electronic commerce as it will allow the user to authorize or pay for services from anywhere; on a transatlantic flight, the local corner store or a favorite bar.

38. More personal predictions for the future of m-commerce • Entrepreneurs, banks and financial institutions will join with Mobile Network Operators to capitalize on an  enormous opportunity;because of m-commerce, the mobile customer will also be an important  financial client.

39. Final thoughts • A mobile M-commerce Internet will depend on other technologies, too, such as mobile positioning  systems to facilitate location-based services that will adapt to a user’s situation and profile. • 3G has already developed such a system is called the 3GMPS, this along with their location enabling technology called the 3G Locator will help release the full potential of m-commerce.

40. List of References • www.telstra.com • www.mcommercetimes.com • www.mobileinfo.com • www.cellular.co.za