Mobile phones may become a way for customers to make purchases, receive coupons, and interact with retailers, but there are several hurdles. Creating the ecosystem of service providers, merchants, banks, and users coming on to the mobile platform is the first challenge against quick arrival. Creating standard platforms, which can interact with all systems, is another challenge that needs to be addressed for m-commerce to become a big money spinner for the stakeholders.

Big in India?
India has a substantial addressable market, with over 45 mn credit/debit cards, 440 mn bank accounts, and 177 mn mobile subscribers. But, m-commerce has already been introduced in Japan. In m-commerce, two types of transactions take place-low-value and high-value transactions. Low-value transactions usually imply music downloads, logo downloads, picture downloads, ring tone downloads, etc. There can be some banking and value-added services like news and stock alerts. Then there are services like m-coupons and wallets. High-value transactions involve credit and debit card transactions, point-of-sale terminals, going to the merchant location, and paying through the handset. Presently, only low-value m-commerce transactions are happening in India; the concept of m-coupons and wallets has not yet picked up. There is no major development in terms of high-value transactions. However, service providers are gradually waking up to the opportunity, and we are seeing a lot of activities in this front.

Another m-commerce based segment is mobile ticketing, which is already available to users. Hutch subscribers can book Jet airways ticket, and Airtel subscribers can book cinema tickets for PVR multiplexes in Delhi. Train tickets are also already available on the mobile. There is a lot of enthusiasm in the market, and we have seen many new services this year. Mobile ticketing is emerging in a big way. Mobile coupon is another emerging segment. Using this service, discount coupons can be delivered on mobile and redeemed at counters by producing your mobile at counters.

Active Media Technology is pioneering this in India. It has already done a show with Spice in Chandigarh where passes were distributed using m-commerce technology. It is in talks with retail chains to provide this service. PayMate is targeting offline merchant sign-ups, which include large chains to stand-alone retail establishments. SMS has been the platform of choice for online and remote payments so far, but the company has now introduced a voice-based module keeping in mind unique requirements of the retail industry. To begin with, this solution will be implemented by Future Bazaar, CRS Health, Gold Cabs, and Planet M. Another m-commerce company, C-SAM provides the technology for integration of credit card into the mobile phone. It has tied up with IRCTC, VISA, ICICI, and Hutch to provide services. It has also sold the technology to Motorola for its m-wallet service in the US.

Fraud Goes Mobile
The fear is that a fraudster could literally pluck sensitive information out of the air. The issues are same as that of the fixed-line Internet. Providing solutions may be more difficult, because mobile phones are smaller and have less power than desktops. On the flip side, the fact that mobiles have less power may make them less attractive to hackers. The worrying fact is that we haven't even got standards yet.

Speed and Power
Wireless application protocol (WAP) is the current mobile Internet platform. It works currently on the GSM network. But, in the future, there will be GPRS, and UMTS, (Universal Mobile Telecommunications System). They can be divided into fast, faster, and really speedy. The worry for the mobile companies now is how to make a profit from all of this.

Pricing Issues
If they charge high prices for these services, it means they have broken one of the first rules of Japanese success-keep it cheap. The mobile operators aren't the only stakeholders hoping to profit from mobile commerce. Hardware companies and content providers are also joining the fray. It could be even more difficult for these companies to sell stuff via mobile phones than to sell it on the fixed-line Internet. Some of their future revenue streams could go up in smoke, if they find that users don't want random advertisements popping up on their mobile phone. All these ifs and buts stand between mobile phone companies and their future profits.