M-commerce, e-payment systems, digital signatures enotes lucknow university

 

M-commerce

M-commerce (mobile commerce) is the buying and selling of goods and services through wireless handheld devices such as smartphones and tablets. M-commerce is a form of e-commerce that enables users to access online shopping platforms without the use of a desktop computer.

 

Over time, content delivery through wireless devices has become faster, more secure and scalable. As a result, mobile commerce has grown rapidly.

 

Examples of m-commerce include in-app purchasing; mobile banking virtual marketplace apps, such as the Amazon mobile app; and digital wallets, such as Apple Pay, Google Pay and Samsung Wallet.

 

Examples of m-commerce use in specific industries include the following:

 

Financial services. Mobile banking and brokerage transactions are done from mobile devices.

Telecommunications. Handheld devices are used to make service changes and bill payments, and to do account reviews.

Service and retail. Consumers place and pay for orders on-the-fly through online stores.

Information services. Financial, sports, traffic, weather and many other news updates are accessed through mobile devices.

 

M-commerce is categorized based on the following three basic functions:

 

Mobile shopping enables customers to buy a product using a mobile device with an application such as Amazon or a web app. A subcategory of mobile shopping is app commerce, which is a transaction that takes place over a native app.

Mobile banking is online banking designed for handheld technology. It enables customers to access accounts and brokerage services, conduct financial transactions, pay bills and make stock trades.

 

This is typically done through a secure, dedicated app provided by the banking institution. Mobile banking services may use SMS or chatbots and other conversational app platforms to send out alerts and track account activities. For example, the WhatsApp chatbot lets customers view their account balance, transfer funds, review loans and conduct other transactions in real time through WhatsApp.

 

Mobile payments are an alternative to traditional payment methods, such as cash, check, credit and debit cards. They enable users to buy products in person using a mobile device. Digital wallets, such as Apple Pay, let customers buy products without swiping a card or paying with cash. Mobile payment apps, such as PayPal, Venmo and Xoom serve the same purpose and are popular options. Mobile consumers also use QR codes to pay for things on their mobile phones. With mobile payments, users send money directly to the recipient's cell phone number or bank account.

 

M-commerce vs. e-commerce

Electronic commerce, or e-commerce refers to buying and selling goods and services over the internet. E-commerce and m-commerce are similar, but they come with a few distinctions from each other, such as the following:

 

Mobility. E-commerce transactions can be conducted through a desktop computer where the user is in a fixed spot. This reduces mobility as it can be difficult to move around a desktop device. M-commerce offers greater mobility as it's conducted through handheld devices that can be used anywhere there's an internet connection, including buses, trains and airplanes or when exercising at the gym.

 

Location tracking. Many e-commerce apps make use of location tracking capabilities to pitch users opportunities based on their location. However, the location tracking capability of e-commerce is limited when it is used with a nonmobile device. For example, the location of an e-commerce shopper is tracked with their IP address. While the IP address provides a broad region of the user's location, it is not capable of identifying the exact location, which might affect the targeted advertising strategies of a business. M-commerce apps, on the other hand, can track locations using Wi-Fi and GPS-based technologies that enable location-specific content and personalized recommendations. For instance, a provider can send push notifications offering personalized discounts that target certain customers as they walk past a specific store in a mall.

 

Security. Credit cards are still commonly used for nonmobile e-commerce payments. They are considered riskier than other online payment methods, even with security measures, such as multifactor authentication. Most data breaches and identity thefts happen because of credit card misuse. M-commerce closes some security gaps through the addition of measures such as biometric authentication, mobile wallets, quick response or QR codes and even cryptocurrencies.

 

Reachability and convenience. M-commerce makes it easier to reach a target audience. With mobile apps, businesses can reach more people and make their buying experience easier and faster.

 

Advantages and disadvantages of mobile commerce

The advantages of m-commerce include the following:

 

Large customer base. M-commerce provides for a larger customer base and better retention than e-commerce in general, because m-commerce capabilities are more widely and easily accessible. Also, mobile analytics offers insights into customer shopping behavior, pattern and history. To boost retention rates, businesses can use this data to target shoppers with personalized offers and tailor-made discounts.

Convenience. M-commerce makes it easier for customers to compare prices, read reviews and make purchases when and where they want to do these things.

Product variety. Customers can browse through a huge inventory of products while also taking advantage of the competitive pricing.

Automation. M-commerce automates a business's point of customer contact and sales with a variety of mobile contactless payment options, such as Apple Pay, PayPal One Touch and Visa Checkout. Many e-commerce sites also offer one-click checkout process functionality, which enables users to add payment information only once and then use the one-click option for every purchase made thereafter.

Omnichannel experience. M-commerce creates an omnichannel experience where products can be sold via multiple channels -- e-commerce websites, Amazon, eBay, Instagram. This approach makes it easier for customers to buy whenever and wherever they want.

Disadvantages of m-commerce include the following:

 

Poor execution. The smaller screens of mobile phones and tablets require specific navigation functionality. Consequently, intuitive mobile user interfaces are complicated and expensive to design. A poorly executed mobile customer experience can frustrate customers and deter them from making purchases.

Payment issues. Mobile payment options are not available in every geographic location and may not support every type of digital wallet.

 

 

Tax compliance. Businesses must know and comply with tax laws and regulations of all countries they ship to. Some businesses will avoid this by only authorizing purchases from and shipping to their country of origin.

Security vulnerabilities. Many users are still hesitant to make purchases over a mobile device because of security risks. Even with two-factor authentication, mobile fraud is on the rise and many merchants have still not adopted fraud prevention practices for the smaller screen. Attacks, such as SIM swaps and mobile malware, are becoming more common and can discourage users from making payments through their mobile devices.

 

e-payment systems

 

 

Electronic Payments entail the transfer of funds through electronic or digital mediums.

You can choose from different e-payment methods like mobile wallets, bank cards, mobile banking, etc.

E-payments are quick and efficient, and the fund transfer typically takes place instantly.

It is a secure mode of making payments.

E-payments eliminate the need for cash payments, and funds are transferred directly into mobile wallets or bank accounts linked to the mobile number.

 

What is Electronic Payment and Its Types?

E-payments are an electronic or digital way of transferring funds. Essentially, you can utilise electronic payment methods to transfer funds as an alternative to cash payments. In India, you can access various types of electronic payment methods based on your requirements.

 

The various types of e-payment include credit and debit cards, mobile wallets, UPI, internet and mobile banking, and many more. You simply require a bank account and an internet-enabled device to leverage e-payment solutions and pay for various products and services.

 

Advantages of e-Payment?

The following are some of the critical advantages of e-payments.

 

Time-Saving

E-payments enable you to make purchases with a simple tap or swipe. Transactions are processed and completed within a couple of minutes. While it is faster than paying with a paper check or other instruments, it also saves you the time and hassles associated with arranging cash.

 

Efficient

With electronic payment systems, you do not have to wait in long queues at ATMs or bank branches to withdraw cash. The lines at checkout counters are also shorter, with each transaction taking less time. You can also use these online payment systems to pay for a wide variety of products on online shopping websites, thus eliminating the need to visit stores physically.

 

Cashless Economy

Another advantage of e-payments is that it helps build a cashless economy, especially in the urban areas of the country, by reducing the reliance on cash. Reduced cash usage in the urban sectors enables banks to distribute more cash in the rural parts of the nation where e payments are uncommon.

 

Security

Cash transactions bring their own set of risks, such as robbery, misplacement, or other similar incidents. However, electronic payment systems come equipped with security protocols that ensure the safety of your funds. Banks use highly secure practices like two-factor authentication, PIN (Personal Identification Numbers) and OTPs (One Time Passwords) to protect your funds from thefts or fraudulent activities.

 

Certainty

The payments made using e-payment methods reflect in your bank statement or digital wallets. You also receive instant e-mails and SMS alerts after every transaction. You can check for the credit/debit of funds in your account based on the chosen method of e-payment. In case funds are debited wrongly, the transaction is reversed within 24-48 hours.

 

Digital Signature

Digital signatures are used to authenticate the identity of the sender. It is like signing a message in electronic form.

A digital signature is a protocol that produces the same effect as a real signature.

It is a mark that only the sender can make and other people can easily recognize that it belongs to the sender. A digital signature is also used to confirm agreement to a message.

A digital signature must be unforgeable and authentic.

In a digital signature process, the sender uses a signing algorithm to sign the message. The message and the signature are sent to the receiver. The receiver receives the message and the signature and applies the verifying algorithm to the combination.

If the result is true, the message is accepted otherwise it is rejected.

A conventional signature is like a private key belonging to the signer of the document. The signer uses it to sign documents. The copy of the signature on a file is like a public key so anyone can use it to verify a document to compare it to the original signature.

 

In digital signature the signer uses her private key applied to a signing algorithm to sign the document. The verifier uses the public key of the signer applied to verifying algorithm to verify the sign.

When a document is signed anyone including Bob can verify it because everyone has access to Alice’s public key. Alice must never use her public key to sign the document because anyone could forge her signature.

Digital signatures have assumed great significance in the modern world of web-commerce. Many countries have made provisions for recognizing digital signature as a valid authorization mechanism like paper-based signatures.