mCommerce and Mobile Banking_Michael Hanley
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The document discusses mobile commerce (mcommerce) and mobile payments, defining mcommerce as the exchange of value via mobile devices. It outlines various technologies, payment methods, issues related to privacy and security, and current consumer usage statistics. Furthermore, it highlights examples of successful mcommerce applications and payment service providers in the market.
mCommerce and Mobile Banking_Michael Hanley
- 1. Mobile Commerce and Payments mCommerce & Mobile Banking: How the Smartphone Is Changing Retail and Mobile Payments Class 13
- 2. Mobile Commerce and Payments SMS MMS Email A Mobile Campaign (Mobile, Mobile Enabled) Image Recognition IVR Internet Mobile Web Bluetooth Talk Ways to Interact With a Mobile Phone and Distribute Mobile Content GPS Talk to Text 6 Location/GPS Apps
- 3. Mobile Commerce and Payments What is mCommerce? The Mobile Marketing Association definition of mobile commerce (mCommerce): “Mobile Commerce is the one- or two-way exchange of value facilitated by a mobile consumer electronic device (e.g. mobile handset) which is enabled by wireless technologies and communication networks.”
- 4. Mobile Commerce and Payments What is mCommerce? The Exchanges of Value can be for: • Purchase of goods or services (Digital Content, Physical Goods, etc.) • Perishable goods (Tickets, Vouchers, etc.) Services (Remittances, Bill Payment, etc.) • Transfer of value or money (e.g. Person to Person, Donations, Other)
- 5. Mobile Commerce and Payments mCommerce Uses Online goods and services Streaming media Electronic books Software Retail services Banking Food ordering Online flower delivery Online pharmacy DVD-by-mail Travel Marketplace services Trading communities Auctions • Online wallet Advertising Price comparison service Social commerce Mobile commerce Payment · Ticketing Banking
- 6. Mobile Commerce and Payments What is mCommerce? Types of Consumer uses may include: • Credit Account (Credit Card, Bill Me Later, Carrier Statement) • Bank Account (Debit Card, Person to Person, Automated Clearinghouse) • Stored Value (Gift Card, Prepaid, Airtime, Points, Reward Programs) • Discounts (Coupons, Rebates, Pricing) • Promotional/free (Samples, Test Drives)
- 7. Mobile Commerce and Payments What is mCommerce? Types of Mobile Technologies used: • Messaging unique to Mobile (SMS, IM, MMS) • Mobile Client Applications (iPhone, Android, Brew, Java) • Proximity Communication Technologies (Bluetooth, RFID/NFC) • Mobile Voice (Interactive Voice Response) • Mobile Display (2D Barcode, QR Code)
- 8. Mobile Commerce and Payments mCommerce Issues Copyright issues Trademarks Privacy Data sharing/data sets Mobile payments Open source software FTC compliance Use of mobile in the workplace: Bring your own devices Electronic publishing Ownership of data Privacy Other restrictions Automobile as a mobile device: What does it mean? Tracking devices Insurance coverage Legal consequences
- 9. Mobile Commerce and Payments What Are Mobile Payments? Mobile payment is an alternative payment method. Instead of paying with cash, check, or credit cards, a consumer can use a mobile phone to pay for a wide range of services and digital or hard goods such as: Music, videos, ringtones, online game subscription or items, wallpapers and other digital goods. Transportation fare (bus, subway or train), parking meters and other services Books, magazines, tickets and other hard goods.
- 10. Mobile Commerce and Payments Types of Mobile Payments There are four primary models for mobile payments: • Premium SMS based transactional payments • Direct Mobile Billing • Mobile web payments (WAP) • Contactless NFC
- 11. Mobile Commerce and Payments Mobile Payment Issues What are Premium SMS payments? Some companies, like Venmo, allow users to create profiles tied to bank accounts. Users can then pay with text commands like "Pay 555-555-5555 4.75 for a sandwich," after the trusted, two-way relationship has been established. Other SMS payment systems work by adding the charge to a carrier bill.
- 12. Mobile Commerce and Payments Mobile Payment Issues What is Direct Mobile Billing? The consumer uses the mobile billing option during checkout at an eCommerce site—such as an online gaming site—to make a payment. After two-factor authentication involving a PIN and one-time password, the consumer's mobile account is charged for the purchase. It is an alternative payment method that does not require the use of credit/debit cards or pre- registration at an online payment solution such as PayPal, thus bypassing banks and credit card companies altogether.
- 13. Mobile Commerce and Payments Mobile Payment Issues What is NFC? Near-field communication is a technology with a corresponding set of industry standards that allows two objects in close proximity to wirelessly exchange information via radio waves. NFC chips, found in newer phones, can read and transmit data. Plus, NFC tags can be encoded with static information to be read by NFC-enabled devices. Payments are just one application of the technology. MasterCard and Intel just partnered to bring NFC to laptops.
- 14. Mobile Commerce and Payments Mobile Payment Issues Digital wallets vs. mobile payments A digital wallet is a program by which users can securely store multiple credit card data, allowing for one-click-style online shopping. Mobile payments rely on a phone instead of a credit card, using technologies like near-field communication (NFC) or QR codes. Many mobile payment solutions are being designed with the aim of using some sort of mobile wallet, which like the digital wallet, can house numerous credit, debit and loyalty card information.
- 15. Mobile Commerce and Payments Mobile Retailing Issues • 45 million U.S. smartphone owners used an application from the shopping/commerce category in June 2012 • 73 percent of smartphone owners say they have used their mobile phone in a store • 42% of smartphone owners use mobile banking • 44% of mobile banking users are 18-29 years old • 74% of shoppers that visit a mobile site or app for a retailer or brand make a purchase
- 16. Mobile Commerce and Payments LBS Technologies
- 17. Mobile Commerce and Payments Types of LBS • GPS - Global Positioning System. Consists of 24 earth- orbiting satellites. User must have a mobile phone with a GPS receiver. • E911 – Enhanced 911 is a North American telephone network that automatically determines a location of the caller seeking emergency services like fire, accident, kidnapping and others where communicating to your place is impossible. E911 is one of the most widely used location services in North America and Canada. • RFID - Radio Frequency Identification (RFID) method used to transmit identity of an object wirelessly. The identity displays in the form of a serial number. Used to store and retrieve data by using two devices like tags and transponder in a mobile phone.
- 18. Mobile Commerce and Payments Mobile Payments Providers • Visa V.me - Visa’s digital payments service • PayPass Wallet – MasterCard service. An extension to MasterCard’s PayPass brand, of tap-and-go, NFC-enabled payments that work via PayPass-enabled (NFC) phones, cards, key fobs, or mobile tags at over 441,000 locations worldwide. • Isis, the mobile-payment joint venture backed by AT&T, Verizon Wireless and T-Mobile USA launched in September.
- 19. Mobile Commerce and Payments Mobile Payments Providers • Square – Credit card reader for everyone • Bango on Facebook – Facebook has partnered with Bango, a provider of billing and analytics for app stores, mobile apps and sites. Bango will provide payment services to Facebook.
- 20. Mobile Commerce and Payments Mobile Payments Providers • Square – A “white label” mobile payments provider based in Germany • mFoundry – a provider of mobile solutions for financial institutions and retailers • GrouponPayments, a payments service backed by a guarantee to be the lowest cost option for the company’s merchants to accept credit cards.
- 21. Mobile Commerce and Payments Mobile Payments Providers • PayPal Here – a smartphone credit card payment app • mFoundry – a provider of mobile solutions for financial institutions and retailers • GrouponPayments, a payments service backed by a guarantee to be the lowest cost option for the company’s merchants to accept credit cards.
- 22. Mobile Commerce and Payments tCommerce • By 2014, 208 million tablets worldwide • 72% of tablet owners make purchases from their devices on a weekly basis
- 23. Mobile Commerce and Payments 5 mCommerce Opportunities
- 24. Mobile Commerce and Payments mCommerce examples Sephora 7 American Eagle Costco Crate&Barrel Branding Brand — American Eagle Outfitters Mobile Commerce iPhone App Vendor American Eagle OutfittersiPhone App $0.00 From iTunes: Check out the updated AE App.... Loaded with sweet stuff and exclusive content to keep you in the know on new trends while giving you the tools you need to shop anyway way you want. Looking for some new looks to rock around campus? Want special savings you can't find anywhere else? How about something that just makes shopping new styles easier? Seriously, this is the app to get. Here are just a few more features we love... Shop the latest looks & get exclusive deals right from your phone. Scan items in store to find more info on it and add it to your wishlist. Shake up the Style Mixer and check out the unique look it creates for you. Get updates on the latest Trends of the Week and Looks to Live In Earn extra AEREWARD$ points for signing in, buying stuff, checking into stores, and scanning items. Locate stores, read reviews & share your favorite finds with friends Take photos, add filters, and share with friends on Facebook, Twitter, or email. Get 2 AEREWARD$ points for each share! Check out expanded "More" menu where you can track orders, manage offer notifications, pay your AE Credit Card and manage your account. Sites Smartphone Apps Tablets About News Contact 10/ 16/ 12 Branding Brand Mobile Sites Smartphone Apps Tablets A 10/ 16/ 12 Branding Brand — Sephora Mobile Commerce iPhone App Vendor Sephora to Go iPhone App $0.00 From iTunes: It's everything you love about Sephora at your fingertips. Buy products launches, read reviews, access your Beauty Insider account, discover much moreall while in the app. **Plus, get a FREE iPhone sleeve with purchase. And that's only the beginning.** Shop: Browse products, add them to your basket, and charge your phone. Scan: Use it in stores to instantly pull up product videos, product in reviews, add products to shopping lists, and more. New Products: Stay up-to-date on the hottest launches and latest b Today's Obsession: See what products Sephora staffers swear by Sephora Hot Now: See the newest, latest, most buzzed about beau Virtual Polish Change: Virtually try on a vast spectrum of polishes find your new favorites. Mobile Sites Smartphone Apps Tablets About News Contact
- 25. Mobile Commerce and Payments Home Shopping Network • Mobile sales during the first half of 2012 were higher than for all of last year • “We are really focused on providing an optimized transactional experience. We know that customers are using mobile for speed and simplicity. • “Customers are sitting on a couch and have their device in hand using it to find what they are currently watching and to get additional information that isn’t on screen. It has really become the remote control as they are watching live.”