Mobile users are in constant look out for new VAS applications. Every user likes simplicity and convenience when it comes to getting their work done. Mobile users are ready to spend extra money for this. This is way mCommerce has become popular among mobile VAS subscribers.
What is mCommerce?
mCommerce is the ability to purchase goods or make transactions over the mobile phone. It is a mobile VAS application which is also known as next generation e-commerce. Some of the service supported by mCommerce are:
- Mobile banking — Account enquiry, money transfers, credit check
- Mobile payment — Phone bills, utility bills, insurance premiums, recharge pre-paid connections
- Shopping and trading — Buying goods, placing orders
- Mobile ticketing — movie ticket booking, travel ticket purchases, gift vouchers and coupons
- Mobile advertising — Posting banners, advertisments
- Information services — Sports figures, traffic updates, weather reports, location based services, stocks info etc
- Entertainment – Games and gambling
How does it work?
Mobile users need to download an application hosted by various mCommerce service providers, on their handset. The backend technology is usually through WAP. Phones require GPRS connectivity to be enabled. Some mCommerce players offer services through SMS (text messaging) or IVRS (voice based) technologies. Payment methods is also very simple. For post paid users charges are incorporated in the mobile bill where as for pre-paid users amount is deducted from their calling credit. Subscribers can be charged by their credit card which is linked to their subscriber profile. Some service providers charge subcription based on regular basis (Ex-montly).
Benefits of mCommerce
The whole purpose of mCommerce is to make it convenient for people to get what they want in a quick and easy manner.Various members of Mobile VAS value chain benefit from mCommerce services.
- Service providers benefit by increase in revenues by coming up with new applications and hence meeting customer demands
- End users get to use an easy application which makes it convenient for making purchases and transactions on the fly, improves productivity and provides flexibility
- Operators benefit from getting a percentage of the revenues from service providers
- Device manufacturers – Application could be pre-installed on phone by tie-ing up with handset manfacturers
- Application providers/developers - Can provide/develop new features persistently
Potential of mCommerce in India
Due to the user-friendly platform, high level of security offered, cost-effective solution and large number of services offered should attract more users to explore mCommerce services. The launch of 3G (higher data rate) in India recently is expected to contribute to the growth of mCommerce. Therefore, there seems to be a good potential for mCommerce in India and it is expected to contribute to good amount of revenues for service providers, cellular operators, banks,retail outlets, airlines, railways, information providers, media, content providers and at the same time is beneficial to subscribers.
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