Mobile Commerce - Exam Ready Notes
a. What is Mobile Commerce?
Mobile Commerce (M-Commerce) means buying and selling goods/services using mobile
devices like smartphones and tablets.
It works through internet + mobile networks (4G/5G/Wi-Fi).
Example: Ordering food on Swiggy/Zomato or booking tickets on IRCTC app.
Key feature: Anytime, Anywhere shopping.
b. Mobile Commerce Framework
A framework shows how M-Commerce works:
1. Mobile Devices – Smartphones, tablets.
2. Wireless Networks – 4G, 5G, Wi-Fi to connect users.
3. Applications – Apps like Paytm, Amazon, PhonePe.
4. Middleware – Payment gateways, APIs connecting banks/merchants.
5. Back-end Services – Banks, content providers, retailers.
6. Users – Consumers and businesses.
Example: When you book an Ola cab → App + Network + Payment Gateway + Bank + Driver.
c. Mobile Commerce Technology
Technologies that make M-Commerce possible:
- Mobile Networks – GSM, 3G, 4G, 5G.
- Smartphone Apps – Android/iOS apps.
- Payment Systems – UPI, NFC, QR Code payments.
- Security – OTP, biometrics, encryption.
Example: Google Pay uses NFC + QR code + encryption for transactions.
d. Mobile Commerce Applications
- Banking – Money transfer using SBI YONO, GPay.
- Shopping – Amazon, Flipkart apps.
- Ticketing/Booking – MakeMyTrip, BookMyShow.
- Entertainment – Netflix, Spotify, Mobile Games.
- Location-based Services – Uber, Zomato delivery.
Example: Booking a movie ticket on BookMyShow in 2 minutes.
e. Mobile Banking
Mobile Banking is doing banking transactions using a mobile phone.
Services: Balance check, fund transfer, bill payments, UPI.
Example: Sending money to a friend using PhonePe.
Advantage: No need to visit bank, saves time.
f. Scope, Benefits, Limitations of M-Commerce
Scope: Retail, banking, education, travel, entertainment, healthcare.
Benefits:
- Anytime, anywhere transactions.
- Faster + easier payments.
- Personalized offers.
- Cost saving for businesses (no physical store).
Limitations:
- Security threats (hacking, fraud).
- Network issues in remote areas.
- Legal/regulatory differences across countries.
Example: You can shop on Flipkart from a village, but poor network may interrupt.
g. Difference between E-Business, E-Commerce, M-Commerce
E-Business = All digital business activities online.
E-Commerce = Online buying/selling.
M-Commerce = Online buying/selling using mobile devices.
Examples:
- E-Business: HR portals, supply chain mgmt.
- E-Commerce: Amazon website.
- M-Commerce: Amazon mobile app.
h. Wireless vs Satellite Communication
Wireless Communication:
- Short/medium range (Wi-Fi, 4G).
- Low cost, low latency.
- Example: Jio 4G internet.
Satellite Communication:
- Global coverage using satellites.
- High cost, higher latency.
- Example: Tata Play DTH, ISRO satellite links.
i. Types of Mobile Commerce Service Providers
1. Telecom Providers – Jio, Airtel (network).
2. Application Providers – Flipkart, Ola.
3. Payment Gateways – Razorpay, PayU.
4. Content Providers – Netflix, Hotstar.
5. Banking Providers – SBI, HDFC apps.
j. M-Payment Service Providers
- PayPal (international).
- Google Pay, PhonePe, Paytm (India).
- Amazon Pay.
- Apple Pay, Samsung Pay (NFC).
Example: Paying via QR code at a tea stall using GPay.
k. Mobile Communication Standards
- 2G (GSM, CDMA) – Voice + SMS.
- 3G – Basic internet, video calls.
- 4G (LTE) – Fast data, HD video streaming.
- 5G – Superfast, supports IoT, self-driving cars.
Example: Watching YouTube on 4G vs 5G (buffering difference).
l. Mobile Banking Business Models
1. Bank-led – Services controlled by banks (SBI YONO).
2. Non-bank-led – Managed by telecom/payment companies (Paytm wallet).
3. Hybrid – Bank + Mobile operator tie-up (Google Pay + banks).
m. Mobile Banking Services, Advantages, Challenges
Services: Fund transfer, bill payments, mini statements, loan info.
Advantages: 24/7 access, saves time, cost effective, cashless.
Challenges: Hacking, phishing, poor awareness in rural areas, technical issues.
Example: Farmer using mobile banking in a village but facing network drop.
n. Mobile Value Added Services (MVAS)
Extra services beyond basic calls & SMS.
Examples: Caller tunes, OTT (Netflix), mobile alerts, mobile TV, cloud storage.
Importance: Helps telecom companies earn more and attract customers.
o. Security, Privacy, Legal Issues in M-Commerce
Security Issues – Phishing, hacking, malware, fake apps.
Privacy Issues – Companies selling user data, location tracking.
Legal Issues – Cross-border trade laws, online contracts, taxation.
Example: Facebook fined for data privacy issues (Cambridge Analytica).
