2Mobile Ecommerce Mobile telephony Standards Smartphones Software solutionsPayment SystemsOperating SystemsApps
3BackgroundMobile phones send and receive radio signals with any number of cell site base stations fitted with microwave antennasThese sites are usually mounted on a tower, pole or building, located throughout populated areas, then connected to a cabled communication network and switching systemThe phones have a low-power transceiver that transmits voice and data to the nearest cell sites, normally not more than 8 to 13 km (approximately 5 to 8 miles) away.
4Being mobile When the mobile phone or data device is turned on, it registers with the mobile telephone exchange, or switch, with its unique identifiersIt can then be alerted by the mobile switch when there is an incoming telephone call.The handset constantly listens for the strongest signal being received from the surrounding base stations, and is able to switch seamlessly between sites.As the user moves around the network, the "handoffs" are performed to allow the device to switch sites without interrupting the call.
5Cell SitesCell sites have relatively low-power (often only one or two watts) radio transmitters which broadcast their presence and relay communications between the mobile handsets and the switch. The switch in turn connects the call to another subscriber of the same wireless service provider or to the public telephone network, which includes the networks of other wireless carriers. Many of these sites are camouflaged to blend with existing environments, particularly in scenic areas.
13Content purchase and delivery Currently, mainly consists ofthe sale of ring-tones,wallpapers, andgames for mobile phones.The convergence of mobile phones, portable audio players, and video players into a single device is increasing the purchase and delivery of full-length music tracks and video.The download speeds available with 4G networks make it possible to buy a movie on a mobile device in a couple of seconds.
14Location-based services The location of the mobile phone user is an important piece of information used during mobile commerce or m-commerce transactions.Knowing the location of the user allows for location-based services such as:Local discount offersLocal weatherTracking and monitoring of people
15Mobile money transfer, ticketing, vouchers, coupons and loyalty cards ATMMobile ticketingMobile vouchers, coupons and loyalty cards
16Traffic and Banking Traffic reporting Mobile banking Customized traffic information, based on a user's actual travel patterns, can be sent to a mobile deviceThis customized data is more useful than a generic traffic-report broadcast, but was impractical before the invention of modern mobile devices due to the bandwidth requirementsMobile bankingBanks and other financial institutions use mobile commerce to allow their customers to access account information and make transactions, such as purchasing stocks, remitting money.This service is often referred to as Mobile Banking, or M-Banking.
17Mobile marketing and advertising In the context of mobile commerce, mobile marketing refers to marketing sent to mobile devices.Companies have reported that they see better response from mobile marketing campaigns than from traditional campaigns.Research demonstrates that consumers of mobile and wireline markets represent two distinct groups who are driven by different values and behaviors, and who exhibit dissimilar psychographic and demographic profiles. As a result, successful mobile commerce requires the development of marketing campaigns targeted to this particular market segment
18M-commerce in RetailMobile is perhaps the number-one area of digital commerce to watch,Major attractionits ubiquity,popularityever-expanding technical capabilitywidespread belief that mobile internet access could overtake desktop access in next 2 – 3 years
19GrowthA sluggish start now appears to have given way to a sustained momentum for the channel.From the IMRG Capgemini Quarterly Benchmarking Index,mobile sales rise from 0.4 per cent of e-retail sales to 5.3 per cent over the space of just two years. (IMRG Capgemini Quarterly Benchmarking Index)It is probably fair to say then that m-commerce has now begun its rise to sales prominence in earnest.It is clear that the opportunity is too great to be ignored
20What to do?But what should retailers focus on in order to ensure they are able to take advantage of it?
21App or web To focus on a mobile-optimised site or develop an app? The answerdepends on the brandits specific customer profilethe nature of its offeringOn the whole though, when it comes to sales conversion rates, a mobile-optimised site would appear to be the best choice
22Apps can be very useful for engagement and providing a good customer experienceparticularly with their capacity to utilise some of the more advanced functionality of a mobile deviceLess potent as a direct stream for increasing revenueMany retailers generate less than 1 per cent of their sales through an app.
23Transactional or Promotional If the primary aim of a mobile channel is to be transactionalan optimised site seems to be the more appropriate optiona tendency for users to go straight to their browser when shoppingwhich is, and always will be, a “browsing” experience.A mobile site will reach more consumersCompatibility issues should be at the forefront of any strategic decision-making
24The CustomerAs with all things in retail, it is largely a matter of understanding the customer and providing an offering appropriate to their needsAlthough the growth rate is very impressive, the actual percentage of the total market that mobile accounts for is still relatively small
25ScalabilityWhile it may be appropriate for a site to have an eye on scalability in anticipation of that growthThe focus for the time-being should probably be on presenting a solution that caters for the basics very wellLots don’t
26Payment Systems A small set of examples: Credit/Debit Cards Electronic BankingContactless Payment SystemsSMS Payment
27Credit Cards Most popular way of paying in B2C transactions online Estimated in USA that 90% of all B2C is via credit/debit cardsIntroduction of card verification number (CVN) has improved securityBanks have further checks to request passwords etcSmartcards can be loaded with cash at ATMs or by phone
28Electronic Banking New apps on phones support electronic banking. Password controlled, easy to useChecks of balancesMoney transfer to other bank accountsSet up of common payments
29Contactless Payment Systems Some mobile phone can make mobile payments using contactless payments The phone and point of sale terminal must support near field communication (NFC) This requires the co-operation ofmanufacturersnetwork operatorsretail merchants to enable contactless payments through NFC-equipped mobile phones
30SMS Payments Method of charging to mobile phone bill The consumer sends a payment request via an SMS text message to a short code Premium charge is applied to their phone bill The merchant involved is informed of the payment successReleases the paid for goodsA trusted delivery address is typically not givenGoods are most frequently digitalMerchant replying using a Multimedia Messaging Service to deliver the purchased music, ringtones, wallpapers etc.
31Operating Systems Symbian Blackberry Was most popular Consortium led by NokiaNow open sourceBlackberryTightly built to support secure
32The Major Players Android IOS Windows 8 Most installs Derived from LinuxIOSApple introduce first multi-touch phoneOpened up to app developersWindows 8New interfaceIntegrated social media
33Apps Apps are in their infancy Very sophisticated multi sensor inputs New easy to use development toolsHCI is a problemScreen size on phonesNavigation - HierarchicalSheer Bad DesignBut very early days……………