Transcript Ecommerce Applications 2009/10

Ecommerce Applications 2009/10
E-Commerce Applications
Mobile commerce
Ecommerce Applications 2009/10
Overview
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Mobile computing technologies
Mobile commerce and markets
Mobile commerce applications
Security
Case studies
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Ecommerce Applications 2009/10
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.
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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
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Ecommerce Applications 2009/10
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
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Ecommerce Applications 2009/10
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.
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Ecommerce Applications 2009/10
Market Potential for m-commerce
Users in Mio.
1.200
Mobile phone users
1.000
More mobile Devices
connected to the
Internet than PC´s!
800
600
Internet Access with PCs
400
200
Connected mobile devices
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1996
Sources: NOKIA, Forrester
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2000
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2001
2002
2003
2004
2005
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m-Commerce growth
 More than 21 million Europeans will take up mobile
banking (Datamonitor)
The revenues for mCommerce will skyrocket (Jupiter Communications)
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3.5
US: $600 million
$ Billion
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Europe: $1.7 billion
1.7
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Japan: $3.5 billion
0.6
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US
Europe
Japan
Turnover in Germany alone will top €4 billion (Durlacher)
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Ecommerce Applications 2009/10
Why M-Commerce
Internet / E-commerce
e-mail
info channels
e-commerce
cross-corporate business
processes
PC’s
Mainframes
word processing
business processes
spreadsheets
banking, airlines
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Ecommerce Applications 2009/10
M-Commerce Applications
Killer
Applications
Examples of
Technology &
Buzzwords
Mainframe
s
PC’s
Internet / Ecommerce
- Terminals
- VMS
- X.25
- ...
- DOS/Windows
- Client/Server
- LAN
- ...
- TCP/IP
- HTML
- Java
- ...
Corporate Data
Processing
Office
Automation
- general ledger
- banking
- Airline bookings
- ....
- word processing
- spreadsheets
- ERP (e.g.SAP)
- ....
Commerce &
Communication
- e-mail
- info channels
- e-commerce
- cross-corporate
business processes
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M-commerce
M-commerce
-GSM
-GPRS/UMTS
- Blue Tooth
- W-LAN
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Market Drivers
Future killer applications
are grouped in three areas
1. Ubiquitous “professional“
connectivity
- take the office everywhere
Main end user benefits
• Added Value
- do things you couldn‘t
do before
2. Ease of time-critical and
“annoying“ transactions
- hazzle-free bookings,
payment and ticketing
• Convenience
- do things faster and
easier
3. Information and
entertainment channels
- take enhanced media
channels (TV&Internet)
everywhere
• Entertainment
- have more and new fun
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Ecommerce Applications 2009/10
Credit card fraud
Also check out
Source: ECR/Mintel (2001)
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www.apacs.org.uk
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Ecommerce Applications 2009/10
Consumers and credit card fraud
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
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Ecommerce Applications 2009/10
Security and on-line payments
Authentication
Authorisation
Risk
reduction
Card number easy to copy, card easy to skim
Signature, cardholder not present
IP network
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M-commerce approach to security
Authentication
Authorisation
Risk
reduction
Mobile network recognises caller ID
interactive application asks for the authorisation by PIN
code
GSM, banking system
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Ecommerce Applications 2009/10
Case Study: Paypal
 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
Weaknesses
Strengths
 Email and limited WAP based
transactions only
 Accepted at over 15,000 US
websites
 No scope for real world
transactions
 10.6 million users
 Supports person-to-person
Used on ebay
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Case study: M-Pesa
 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
Strengths
Weaknesses
 Will enable mobile
micropayments of as little as 5p
 Only available to Vodafone
users
 Credit Card, Debit card and
Direct Debits accepted with M-Wallet
 Person-to-Person partially supported
 M-wallet user can choose
preferred payment method
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Case study: Oyster
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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
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Ecommerce Applications 2009/10
Summary
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Mobile computing technologies
Mobile commerce and markets
Mobile commerce applications
Security
Case studies
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