M-Commerce and it’s future

December 14, 2009

  1. What exactly is m commerce?


M-commerce (mobile commerce) is a tool buying and selling of goods and   services through wireless handheld devices such as cellular phone and personal digital assistants (PDA). Known as Advance-generation of e-commerce, m-commerce enables users to access the Internet without needing to find a place to plug in. The emerging technology behind m-commerce, which is based on the Wireless Application Protocol (WAP).

  1. What services could be provided using m commerce?

Ans:-Using m commerce one can serve

  • Financial services, which includes mobile banking (when customers use their handheld devices to access their accounts and pay their bills) as well as brokerage services, in which stock quotes can be displayed and trading conducted from the same handheld device
  • Telecommunications, in which service changes, bill payment and account reviews can all be conducted from the same handheld device
  • Service/retail, as consumers are given the ability to place and pay for orders on-the-fly

Information services, which include the delivery of financial news, sports figures and traffic updates to a single mobile device

  1. What are the advantages for retailers using m commerce as a medium of selling and marketing products?


As content delivery over wireless devices becomes faster, more secure, and scalable, there is wide speculation that m-commerce will surpass wire line e-commerce as the method of choice for digital commerce transactions in retail and product marketing becomes easy by giving some royal points and lucky draw etc as promotional scheme.

  1. What are the payment methods used?


1.Net banking transfer E-commerce

2.Cash/cheque deposit

3.Pay via credit card/debit card/other card

  1. How are these payment transactions made secure?


These transaction are made secure using Secure Electronic Transaction (SET) is a system for ensuring the security of financial transactions on the Internet. It was supported initially by MasterCard, Visa, Microsoft, Netscape, and others. With SET, a user is given an electronic wallet (digital certificate) and a transaction is conducted and verified using a combination of digital certificates and digital signatures among the purchaser, a merchant, and the purchaser’s bank in a way that ensures privacy and confidentiality. SET makes use of Netscape’s Secure Sockets Layer (SSL), Microsoft’s Secure Transaction Technology (STT), and Terisa System’s Secure Hypertext Transfer Protocol (S-HTTP). SET uses some but not all aspects of a public key infrastructure (PKI).

Here’s how SET works:

The customer opens a Mastercard or Visa bank account. Any issuer of a credit card is some kind of bank.

(a)The customer receives a digital certificate. This electronic file functions as a credit card for online purchases or other transactions. It includes a public key with an expiration date. It has been through a digital switch to the bank to ensure its validity.

(b)Third-party merchants also receive certificates from the bank. These certificates include the merchant’s public key and the bank’s public key.

(c)The customer places an order over a Web page, by phone, or some other means.

(d)The customer’s browser receives and confirms from the merchant’s certificate  that the merchant is valid.

(e)The browser sends the order information. This message is encrypted with the merchant’s public key, the payment information, which is encrypted with the bank’s public key (which can’t be read by the merchant), and information that ensures the payment can only be used with this particular order.

(F)The merchant verifies the customer by checking the digital signature on the customer’s certificate. This may be done by referring the certificate to the bank or to a third-party verifier.

(g)The merchant sends the order message along to the bank. This includes the bank’s public key, the customer’s payment information (which the merchant can’t decode), and the merchant’s certificate.

(h)The bank verifies the merchant and the message. The bank uses the digital signature on the certificate with the message and verifies the payment part of the message.

(i)The bank digitally signs and sends authorization to the merchant, who can then fill the order.

  1. Is there awareness about m-commerce in India? What has been the reason?


In India,The M-commerce sector is poised for growth in the Indian market owing to its intrinsic link to the booming mobile telephony sector in the region.
While M-Commerce is in its nascent stages, it is slated to boom over the next few years with growing sophistication and lower prices of mobile handsets.

A report by the Internet and Mobile Association of India (http://www.iamai.in) titled “Mobile Value Added Services in India” projects that the mobile VAS sector (of which M-commerce is a part) is expected to grow from Rs.5,780Cr (June 2008) to RS 16,520Cr in June 2010 as a direct benefit of the growth in mobile telephony.

Currently, users of M-commerce perform a wide variety of transactions via mobile from paying for utility bill & movie tickets to shopping & holidays. While the uptake of mobile payments is still gathering pace, services that are more accessible and easier to use are finding favor.


One of the leading players in the sector, PayMate does not require GPRS or software downloads to use its service. As a result, all mobile handsets are eligible to use its SMS & IVR (Interactive Voice Recording) based services, making M-commerce an accessible alternative to cash or credit cards.

With the RBI’s support for M-banking and the release of its guidelines on mobile banking transactions (Sept-Oct 2008), banks have sped up their roll out of m-payment products with banks such as Standard Chartered, SBI and IDBI Bank launching their services in the early part of the year.

  1. What has been the impact of m commerce on retail in India?


Retail sectors are getting good from mobile commerce. M-Commerce has proved a convenient medium for such sectors.

  1. What does the future of m commerce hold in store?


In Service and Retail sectors and  also among the leading sectors, which have nurtured most from e- commerce. M-Commerce would be Vardan for them and will have major boom for these sectors. Several business dealings no matter how big or small are being finalized on the mobile phone. Customer would be able to book the order, can hire carrier/courier services and above all could also pay the dues related to it through mobile.


Indian Mobile Operators and Handset Market

May 29, 2009

Indian Mobile operators and Handset market :

By and large the operators are happy because they have end user stick to them all time,but at the same time now the market is changing drastically into application oriented user in mobile technology as a result it is no more the operator dominating market if operator will not change their mentality and if not working on user’s parameter. I mean user at this point of time is more or less techno savy and feel good to work in own controlled and easy way to do the things taking all safety and security measure in top priority.The top most issue is the customer education and further critical is the acceptance level of end user.That’s the reason that retail is going to be stronger for long term Plan.

Retail Issues:
A physical distribution strategy -it is the basic need in any product or service in Indian market. We can not ignore the fact that the display and penetration to market with maximum reach is the golden rule to up any product or service.That’s the reason any service operator is pushing hard to minds of customer takes time to click.for any Vas service distribution using bluetooth, USB drives or memory cards would end up being more expensive (because of logistic etc), and more difficult to manage in terms of having a customize pattern.Further Indian market is purely in Prepaid module means they spend it when they need it.further any service has its own limitation in terms of user uses pattern means a person has many desired work at different time frame and different location and also the needs are some how in different pattern in different geographic region. A beauty is that India is as diversified in user’s pattern as its culture.

Point-of-purchase issues:
End user often have inadequate point-of-purchase to get desired service which is also need to take in consideration in both way i mean to have good education to dealers and fare knowledge to customer about product/service.Now the handset market has got the idea of what is the meaning of Value in the context of end user to compel them to buy new handset.India is a country which has now got maturity in terms of customer’s buying behavior they are no more fascinated to buy any new product/service unless until it is primarily required.It means retail point is to be intelligent enough to handle the situation.

Retailer Margins:
Days are gone when retailers were happy to get good margin in their sale with number of product/service sale. Now it seems that you have to work hard to get business in all front and has to be all time busy to get business from all front means product/sevice.further as it is the service oriented market with prepaid module customer will come to you like they use to go to ATM machine to Money as and when required.Further the most of the end user is intelligent to work out the monthly budget and among them high numbers are hate to invest again and again in some work which is not all time required or without that they can survive.People prolonged the matter till it is not badly required.It is the real challenge for any service to come to that level to get real test in Indian market.typical example is the lifetime pre-paid segment they buy coupon to call as and when required with lowest denomination are for the Rs. 10/5 recharge card. Interestingly, the retailer makes a margin of only Rs. 0.05.but this is the hard fact which retailer has to understand and has to work on it with looking high volume churn out in a day.Now further retail has to have multi product Shop related to their customer base of that locality, say for example retailer may have to keep other items like consumer electronics,digital items,garmets etc.

Vas Content sale Issues:
Purchase of content in a sachet format will allow the consumers the freedom to buy content,and retailer will have high volume and good number of footfall in a day as it has hampered.

Broadly, it needs to change mentality of entire Telecom domain company to work together to serve the end user for their cause not for the object of the company.That is why it is said the it the buyer’s market not the seller’s.Thanks,