E-Cash as a Payment Method

Before the user is able to use e-cash the user first have to create an account with the provider first. Once the provider has verified the identity of the user they will provide the user with a digital certificate which serves as a proof of identity to that user.

Once the user is identified using the digital certificate the bank will issue an e-currency to the customer according to the amount that is required by the user and the amount is then deducted from the users account. The user then can use the e-cash to make payment to merchant who are verified to prevent fraud and forgery.

Once the goods or service are received by the buyer the merchant then can present the e-cash to the issuing bank to deposit it into the merchant’s account.

Reference:

http://homepages.inf.ed.ac.uk/dts/pm/practical/ecash.htm

Advantages of M-Commerce

There are many advantages which M-Commerce can provide which could not be found in E-Commerce:

1. Ubiquity
   User are able to access any m-commerce application in real time.


2. Accessibility
   User are able to access m-commerce application anywhere and at anytime.


3. Security
   Depending on the users mobile device. Some device offers certain level of inherent security.


4. Localization
   Network provider are able to localize their user by using positioning systems such as GPS, GSM or UMTS and offer them location-dependent services such as travel, emergency calls, hotels, restaurants and amenities.


5. Convenience
   It is very convenience to bring a mobile device anywhere due to the size and weight if the device.


6. Personalization
   As mobile devices are not shared between users so it is possible to adjust the mobile devices to the users need and wish.

Reference:

http://www.isg.rhul.ac.uk/~scarlet/documents/Secure%20m-commerce%20ECEJ.pdf

Limitation of M-Commerce

Despite the fact that the use of M-Commerce is growing rapidly there are still limitation that causes limited use of M-Commerce:

1. Bandwidth
   The limited bandwidth that can be support by mobile devices currently is very small which causes web developers to reduce the usage of rich data.


2. Screens Size
   The screen size of a mobile device is very limited. This also limits the viewing capacity of the user.


3. Less Powerful Processors
   Due to the slow processing speed web developer would have to use server side scripting which will bring more load to the servers.


4. Cost of Wireless Connection
   As wireless connection of a mobile device to the internet is still a relatively new technology the cost of using such connection is also expensive as the technology is still under heavy development

Reference:

http://www.witiger.com/ecommerce/mcommerceintro.htm

Trends in Mobile Commerce

Mobile devices have become so popular that many businesses are beginning to use m-commerce as a more efficient method of reaching the demands of their customers. These trend are shown in Asia and in Europe. North America is also beginning to take advantage of m-commerce.

Financial institutions are exploring the use of M-Commerce to broaden their business by allowing their customers to not only access account information, e.g. bank balances, stock quotes and financial advice, from anywhere, but also the possibility to make transactions, e.g. purchasing stocks, remitting money, via mobile devices. This service is often referred to as Mobile Banking. The stock market services offered via mobile devices have also become more popular and are known as Mobile Brokerage, as they allow the subscriber to react to market developments in a timely fashion and irrespective of their physical location.

News information is also becoming more popular with subscriptions to daily headlines from anywhere in the world being transmitted to mobile devices. Sports and entertainment are areas that have also grown with the demand for mobile related services. Shopping and reservation services are now more accessible when using mobile devices. Corporations are now using m-commerce to expand everything from services to marketing and advertisement. Although there are currently very few regulations on the use and abuses of mobile commerce, this will change in the next few years. With the increased use of m-commerce comes increased security. Cell phone companies are now spending more money to protect their customers and their information from online intrusions and hackers.

Reference:
http://en.wikipedia.org/wiki/Mobile_Commerce

M-Commerce

M-commerce is the buying and selling of goods and services through a mobile device. It is also known as the next-generation e-commerce, m-commerce enables users to access the Internet without needing to find a place to plug in. The emerging technology behind m-commerce, which is based on the Wireless Application Protocol (WAP).

In order to exploit the m-commerce market potential, handset manufacturers such as Nokia, Ericsson, Motorola, and Qualcomm are working with carriers such as AT&T Wireless and Sprint to develop WAP-enabled smart phones, the industry's answer to the Swiss Army Knife, and ways to reach them. Using Bluetooth technology, smart phones offer fax, e-mail, and phone capabilities all in one, paving the way for m-commerce to be accepted by an increasingly mobile workforce.

As connection for wireless devices becomes faster, more secure, and scalable, there is wide speculation that m-commerce will surpass wireline e-commerce as the method of choice for digital commerce transactions. The industries which may be affected by m-commerce includes:

1. Financial services
   This includes mobile banking as well as brokerage.


2. Telecommunications
   Payment of bills and account details can be conducted via the same mobile device.
   


3. Information services
   Financial news, sports figures and traffic updates can be viewed using mobile devices.

Reference:

http://searchmobilecomputing.techtarget.com/sDefinition/0,,sid40_gci214590,00.html

Advantage and Disadvantage of Stored Value Card

• Advantages
  The main advantage of Stored value card would be the security that has been implemented in that card. Other then the security the user may also budget their spending as the card has a fixed amount of credit that is loaded on to it.
  
  
• Disadvantage
  By having a fix amount of credit in the card may be inconvenience for some situation. For example when there is an emergency and the user will need to use card immediately and that amount is more then the amount of credit that they have on the card, this may bring inconvenience to them. It may be a hassle for the cardholder because that will have to replenish the credit in the card every time the credit is exhausted.
  

Reference:

http://www.anu.edu.au/people/Roger.Clarke/EC/ChipIntro.html
http://web.mit.edu/ecom/Spring1997/gr12/4ADVECOM.HTM
http://web.mit.edu/ecom/Spring1997/gr12/4ADVECOM.HTM

Security of Stored Value Card

The security that is used in store value card is a multilayer integrated chip security circuitry which is used to control the access to the funds. This security is much more securing then the magnetic-stripe which is used in credit card or debit cards.

By using this security the information of the user will be harder to be retrieve from if the card is stolen compared to a credit card where a magnetic-stripe reader is only needed to gather the information that is in the card. Store value card also uses an encrypted key to authenticate the user whenever a transaction is made.

Reference:

http://www.txwesleyan.edu/~jvortega/security/smartcard_security.html