A hitchhiker’s guide to mCommerce

Imagine handling all your business transactions under a beach umbrella in

some faraway land. It is not a pie in the sky. Very soon, users will be able to

receive information from the Web anywhere in the world through their mobile

phones.

WAP (Wireless Application Protocol), the new technology that gives unlimited

access to the Internet, reproduces Web site text without multimedia elements

like image, voice and video on the display window of mobile devices. WAP is an

open global specification that empowers mobile users with wireless devices to

easily access and interact with information and services instantly.

Mobile commerce is designed to make life easier. For example, a person

wanting to travel will be able to request a ticket for public transport, and

have it delivered electronically into his phone, without the need to queue up in

front of a ticket counter. The ticket will be a piece of electronic code, on a

smart card in a ‘flip’ of the handset. By simply showing the phone at the

ticket barrier, he will be able to access the platform.

The latest developments in this arena are the wireless coupons and vouchers

solutions for mobile commerce using SMS (short message service) technology that

sends short alphanumeric messages to mobile phones. The applications enable

e-coupons to be sent directly to the consumer’s mobile devices. Alternatively,

consumers can download e-coupons or e-vouchers into their handheld devices for

later use.

Mobile commerce allows users to handle daily transactions securely whenever

and wherever it suits them. The technology allows one to pay bills and transact

electronic cash by giving real time access to one’s bank account at any hour

of the day or night. The need for wireless data application is increasingly

becoming significant, driven by both corporate users and private subscribers.

With the development of the new mobile commerce paradigm, customers of mobile

phone operators have shown a keen desire for an enhancement in the basic smart

card concept. A smart card is a piece of plastic, which uses semiconductor

technology containing an integrated circuit (a chip). Capable of reading,

writing, storing and processing information, it is used to make phone calls, to

hold loyalty points, book travel tickets, identify callers, access medical

reports or electronic cash and even intranet sites.

Many corporate users like banks, retailers, and transport companies are

working with mobile operators to promote smart cards. The amount of data that

smart cards can store makes them ideal for loyalty schemes that try to encourage

repeat purchases through personalized services. Smart cards can easily

accommodate enough information and hold important records. They can hold

significant amount of data, and do so securely. That explains the presence of

SIM (Subscribers Identity Module) of GSM standard on a smart card. A SIM card

can be used in any GSM phone and the information held identifies the user to the

network, ensuring personalized transactions. It also checks whether calls are

transferred to a particular phone number if the subscriber has a personal

numbering service.

As many transactions and payments are carried out over mobile phones,

security is an important concern. Complete security is assured through the use

of strong encryption and digital signatures, which guarantee reliable

authentication of the transacting parties.

Wireless includes any type of devices that can handle two-way real time

communication. These could be digital phones, handheld devices and two-way

pagers. Service providers and data providers are the two significant players in

the field. Service providers are the ones who own the wireless network, such as

Spice Telecom, while data providers give customers access to their sites.

In today’s busy world, mobile commerce allows you to become more productive

while you are on the move as it gives you the freedom to carry out your

business-to-business and business-to-consumer transactions from anywhere in the

world, anytime.