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E Commerce 9

M-commerce allows for mobile shopping through devices like mobile phones and PDAs. While convenient, mobile screens are small and input is limited. Mobile devices connect to wireless networks and then the internet to access e-commerce sites. Payment on mobile devices can be done through SIM cards, SMS, or a WAP-enabled device connecting securely to payment gateways and servers. Security and authentication are important considerations for mobile payments.

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30 views9 pages

E Commerce 9

M-commerce allows for mobile shopping through devices like mobile phones and PDAs. While convenient, mobile screens are small and input is limited. Mobile devices connect to wireless networks and then the internet to access e-commerce sites. Payment on mobile devices can be done through SIM cards, SMS, or a WAP-enabled device connecting securely to payment gateways and servers. Security and authentication are important considerations for mobile payments.

Uploaded by

prema
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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M-Commerce

Lecture 9
M-Commerce

−The availability of e-commerce sites 24 x 7 allows anytime


shopping from anywhere in the world.

−The desktop machines are connected to a LAN and are not


portable. Nowadays people on the move want to use e-commerce
facilities when they travel.

−There are two situations which arise. One is the use of a


mobile laptop computer and the other is the use of mobile hand-held
devices such as mobile Personal Digital Assistants (PDAs).
M-Commerce

− Mobile phones use cellular wireless infrastructure to communicate


with one another. The wireless cellular infrastructure is connected
to the Internet and this allows e-commerce.

− Currently B2C e-commerce using sophisticated mobile hand-held


devices such as PDAs is rapidly increasing. It also presents
several new problems. They are:
• The screen size of mobile devices is very small.
• The keyboard in mobile phones has only around 16 keys and thus
several key strokes are required to send a message.
• The time to transmit messages using a cellular network is much
higher .
• The computing power of hand-held devices and available memory
is much less than desktops/laptops.
LAYERED ARCHITECTURE FOR M-COMMERCE

In m-commerce, the major difference is the use of the mobile telephone


infrastructure which permits mobility. Once the mobile device gets connected to
the Internet, the services of the Internet which were used in e-commerce are
available.
MOBILE PAYMENT METHODS

 Mobile payment may be defined as "Any payment which uses a


mobile hand-held device (such as mobile phone, PDA) to initiate,
authorize and confirm payment in return for goods or services.

 All mobile payment systems must have the same properties as e-


payment system. They are confidentiality, integrity, authenticity and
non-repudiation. There are several types of mobile payment systems.
They are:

•SIM (Subscriber Identity Module) card enabled Payment


•Payment using Short Messaging Services
•Payment using WAP enabled mobile hand-held device
•Using Smart card along with the mobile hand-held device.
Payment using WAP-enabled Mobile Hand-held Device

There are several parties involved in enabling credit card payment.


They are:

•Customer using mobile hand-held device


•The mobile network operator
•WAP (Wireless Application Protocol) gateway and proxy which is
at the edge of the mobile network
•Land line (Internet) connecting WAP gateway to the merchant's
server
•Acquirer's server connected to the merchant's server by the
Internet
•Customer's bank (card issuer) connected to the acquirer by
Internet
Payment using WAP-enabled Mobile Hand-held Device

Block diagram of the credit card payment system in m-commerce.


The payment method proceeds as follows:

Step 1: A mobile client accesses the web site of a merchant using his
mobile device in which he enters the URL of the merchant.
Step 2: The merchant's website can be viewed using the mobile user's
micro browser.
Step 3: The mobile client now places selected items in his "shopping cart"
with merchant and orders these.
Step 4: The merchant's server now prepares the invoice and sends it to the
mobile client's device.
Step 5: The mobile client views it using WML. If he approves, he OKs
the transaction. Now he has to send his payment. Normally, it will be by
credit card. Credit card number has to be sent only on a secure channel. In
the wired world TLS provides the necessary security. In WAP enabled
hand-held device the equivalent is WTLS. WTLS uses either RSA/3DES
encryption or Diffie Hellman secure key exchange algorithm for security.
Thus, the credit card details are sent securely to WAP gateways using
WTLS. From WAP gateway to the merchant's server TLS security will be
used. Along with encrypted credit card number the shipping address is
also encrypted and sent to the merchant's server.
Step 6: The merchant's server decrypts the data. The credit card
number and the amount are sent encrypted using TLS to the
acquirer's server.

Step 7: The acquirer forwards the credit card details and amount to
the appropriate customer's bank server using TLS.

Step 8: The customer's bank server validates card number and


amount of order and informs the acquirer's server which
forwards the approval to the merchant.

Step 9: The merchant ships the goods ordered to the customer. The
customer's credit card company mails the bill for payment to
the customer.

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