BUSA1001

Week 8 Lecture

FinTech, Online Payment methods, e-Business and e-Commerce

Wireless, Mobile Computing, and Mobile Commerce

Dr Alice Xi
Overview of e-Business and e-Commerce
• Definitions and Concepts
• Types of E-Commerce
• Major E-Commerce Mechanisms
• Electronic Payment Mechanisms
• Benefits and Limitations of E-Commerce

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Definition

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Types of E-Commerce

•Business-to-consumer (B2C)
•Business-to-business (B2B)
•Consumer-to-consumer (C2C)
Consumer-to-business (C2B)

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Business to Consumer (B2C)

The e-commerce business sells goods or services to an individual consumer. For example,
when an individual consumer purchases products online.
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Business to Business (B2B)

In the B2B e-commerce model, a business sells its goods or services to another business. For
example, an online business selling video editing services for other businesses.
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Consumer to Consumer (C2C)

In this e-commerce business model, individual consumer sells their goods or services to other
consumers. For example, a person selling their items through an online platform.
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Consumer to Business (C2B)

An individual consumer sells their goods or services to a business. For example,

Influencers these days are promoting a business to their audience on Social Media.

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E-Commerce Business Models

• Online Auctions
• Product customization
• Electronic marketplaces
• Bartering online
• Deep discounters
• Membership

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Major E-Commerce Mechanisms

• Electronic catalogs
• Electronic auctions
• E-storefronts
• E-malls
• E-marketplaces

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e-Commerce vs. e-Business

• Electronic Commerce (e-commerce)

o The process of buying, selling, transferring, or exchanging
products, services, or information via computer networks,
including the Internet.

• Electronic Business (e-business)

o A much broader concept than e-commerce
o Servicing customers, collaborating with business partners,
and performing electronic transactions within an
organization

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E-Commerce Business Models

ONLINE DIRECT ELECTRONIC NAME-YOUR-OWN- FIND-THE-BEST-

MARKETING TENDERING SYSTEM PRICE PRICE

AFFILIATE VIRAL MARKETING GROUP

MARKETING PURCHASING (E-
COOPS)

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Electronic Payment Mechanisms

• Electronic Checks (e-checks)

• Electronic Cards
o Electronic credit cards
o Virtual credit cards
o Purchasing cards
o Stored-value money cards
o Smart cards
• Bitcoins

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How e-credit cards work?

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Example of a purchasing card

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Stored-value money cards

The New York City Metro NSW Opal card

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Smart cards

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Benefits and Limitations of e-Commerce

Benefits Limitations
• National and International markets • Lack of universally accepted
are more Accessible security standards
• Lowers costs of processing, • In less-developed countries
distributing, and retrieving telecommunications bandwidth
information is often insufficient, and Web
• Provides access to a vast number of access is expensive
products and services 24/7 • Perceptions that e-commerce is
• Deliver information, services, and insecure
products to people in cities, rural • Unresolved legal issues
areas, and developing countries • Lacks a critical mass of buyers
and sellers

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Electronic Storefronts and Malls

• Electronic retailing (e-tailing)

• Electronic storefront (e- storefront)
• Electronic mall (e-mall)

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Online Services Industry

• Disintermediation
• Cyberbanking
• Online Securities Trading
• The Online Job Market
• Travel Services
• Online Advertising

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Financial Technology (Fintech)
“…..Financial technology (abbreviated fintech or FinTech) is the technology and
innovation that aims to compete with traditional financial methods in the
delivery of financial services. It is an emerging industry that uses technology to
improve activities in finance. The use of smartphones for mobile banking, investing,
borrowing services, and cryptocurrency are examples of technologies aiming to
make financial services more accessible to the general public.

….FinTech embraces “startups and established financial institutions and technology

companies trying to replace or enhance the usage of financial services provided by
existing financial companies”

(Source: https://en.wikipedia.org/wiki/Financial_technology)

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Wireless, Mobile Computing, and Mobile Commerce

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Wireless Technologies

• Wireless Devices
o Smartphones

• Wireless Transmission Media

o Microwave
o Satellite
o Radio

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Modern Smartphone Capabilities

• Cellular telephony • E-mail

• Bluetooth • Biometric applications
• Wi-Fi • Cloud storage
• Digital camera for images & video • Short Message Service (SMS, sending
and receiving short text messages up
• Mobile (digital) wallets
to 160 characters in length)
• Wireless charging/fast charging
• Instant Messaging
• Global Positioning System (GPS) • Text messaging
• Organizer
• MP3 music player
• Scheduler • Video player
• Address book
• Internet access with full-function
• Calculator browser
• QWERTY keyboard

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Dematerialization with smartphones

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Wireless Transmission Media

• Wireless Media (aka, broadcast media)

o transmit signals without wires
• Major Types of Wireless Media Channels:
o Microwave
o Satellite
o Radio

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Microwave- (+): High bandwidth, Relatively Inexpensive
(-): Requires an unobstructed line of sight, Susceptible to
environmental interference

Satellite- (+): High bandwidth, Large coverage area

(-): Expensive, Requires the use of encryption for security

Radio- (+):High bandwidth, Inexpensive,

(-): Creates electrical interference problems
Susceptible to snooping unless encrypted

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Mobile Computing and Mobile Commerce

• Mobile Computing
o Refers to a real-time connection between a mobile device
and other computing environments, such as the Internet or
an Intranet.
• Mobile Commerce
o Electronic commerce (EC) transactions conducted in a
wireless environment, especially via the Internet.

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Mobile Computing

• Two Major Characteristics

o Mobility
o Broad Reach
• Mobility & Broad Reach Create 5 value-added attributes
o Ubiquity
o Convenience
o Instant connectivity
o Personalization
o Localization of Products and Services

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Mobile Commerce
• Also known as “m-commerce”
• Drivers of m-commerce
o Widespread availability of mobile devices
o Declining prices
o Bandwidth improvement

• Mobile Commerce Applications Include:

o Location-Based Applications and Services
o Financial Services
o Intrabusiness Applications
o Accessing Information

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Location-Based Applications and Services

• Location-Based Applications and Services provide information

that is location oriented. For example, when you use your
mobile phone to request a taxi (i.e., your phone requests access
to your location).
• Or when you use your phone to track a parcel, check the
weather, traffic, and the real-time information.
• For example, Uber, weather apps, online traffic checking…

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 Financial Services

• Mobile phones are used for banking transactions, payments, and

electronic wallets, which are called mobile financial
applications. The idea behind it is to remove barriers such as
time and location so customers can easily access financial
services anywhere, anytime.

• Examples are Google Pay, Samsung Pay, Apple Pay, Amazon

Pay, WeChat,…

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Intrabusiness Applications

• M-commerce applications are increasingly being used not

just as a B2C form but as an intrabusiness format as well.

• For example, companies can use non-voice mobile services

to assist in dispatch functions, that is to assign jobs to
employees along with detailed information about the job.

• Mobile delivery and dispatch services includes

transportation, healthcare, security.

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Telemetry

• Wireless transmission and receipt of data gathered from remote

sensors. Telemetry is used in various domains.
o In Healthcare - monitoring many patients within a hospital and
patients are outfitted with measuring, recording and transmitting
devices.
o In Transportation- telemetry provides meaningful information
about a vehicle or driver's performance by collecting data from
sensors within the vehicle.
o In Agriculture, checking some parameters such as air temperature
and relative humidity, precipitation and leaf wetness are vital.

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The Internet of Things (IoT)
Internet of Things (IoT): A scenario in which physical objects are provided with
unique identifiers (IP) and the ability to automatically transfer data over a network
without requiring human-to-human or human-to-computer interaction.

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Internet of Things (IOT) applications

• The Smart Home: using smart devices such as sensors to make

the life easier.
• Healthcare: wearable sensors to monitor blood pressures and
glucose
• Supply Chain Management: real-time tracking of the current
situation of raw material, manufacturing process, and delivering
the final product using sensors.
• Environmental Monitoring: Sensors embedded in irrigation
systems, pipelines, tanks, weather stations, oceanic applications,
and industrial equipment can detect temperature, moisture,
water levels, leaks, and other physical properties.

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