M-Commerce Unleashed

WIKI’s Definition: Mobile Commerce is any transaction, involving the transfer of ownership or rights to use goods and services, which is initiated and/or completed by using mobile access to computer-mediated networks with the help of an electronic device.
Layman’s terms: M-Commerce is an act of buying and selling goods, services or information without any location restrictions, by any mobile device which uses a wireless connection to establish communication between all the necessary parties to complete the transaction.

M-Commerce Transaction (Transaction from a Buyer’s point of view)
Transaction Actors
Buyer (User)
Seller (Content Provider)
Network (Internet / Mobile Service Provider)

Transaction from a Buyer’s point of view.
Transaction Legend
Data Communication layer: Internet / Service Provider Network / Any unique system to complete trading successfully.
Point of Sale (POS): Place / Instance at which the goods / service is traded (purchased successfully)
Proof of Purchase (M-Ticket): Received at POS, as acknowledge/receipt for the trading.
Point of Entry (POE): Place where the M-Ticket is redeemed to avail the service (time of delivery).

M-Commerce Technical Aspects
The idea line behind any m-commerce application is the ability to make commerce transaction through mobile. To be more specific, uniquely identifying & authentication the commerce transaction based on the user’s MSISDN. Technically the billing system which involves a seamless transaction back and forth between the mobile and the payment gateway is the key. Different ways to accomplish M-Commerce are
1> SMS channel: This is commerce between consumer and supplier over SMS. SMS channel is used as a medium for interaction to place order & for payment.
2> WAP channel: This is commerce between consumer and supplier over WAP medium. WAP channel is used as a medium for interaction; the mobile user interacts with supplier’s WAP site and place order and makes the payment.
3> Internet channel: This is the commerce between consumer and supplier over the Web. Mobile user interacts with supplier’s website over Internet using a PC, his mobile number is used as identifier for the transaction and it might need SMS or WAP channel to complete the transaction.
All three channels have their limitations as well as benefits:
Though SMS channel(PUSH marketing) has larger coverage area, same time it difficult to place order as the user have to remember keywords & item code for placing orders.
WAP channel (PULL marketing) need active GRPS connection on mobile, same time its more user friendly.
Internet channel cannot be used everywhere as user need active internet connection, same time it’s more user friendly and has better UX (User Experience).

Real-time Scenario
Just think how exciting it will be if you can place order for a cup of cappuccino using your mobile device on our drive back home and by the time we reach, hot cappuccino awaits at the door steps.
Mr. Swami decides the same and sends an SMS to 9898 with text “CAPCINO 1” to the coffee pub to which he has enrolled thereat. After few seconds he receives an acknowledgement SMS with text “Order for 1 cappuccino will be delivered in 15 mins and you are charged Rs. 50”. On his arrival to his residence, a delivery man offers Mr. Swami a hot cup of cappuccino to drink, taste, enjoy and refresh.