Part of the Mobile Communications Resource Center, this is one of several presentations created by Michael Hanley for Ball State University's College of Communication, Information and Media. All rights are reserved.

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.”