{"id":2341,"date":"2015-06-01T22:46:43","date_gmt":"2015-06-01T22:46:43","guid":{"rendered":"https:\/\/courses.candelalearning.com\/masterybusiness1xngcxmaster\/?post_type=chapter&p=2341"},"modified":"2019-01-05T01:41:27","modified_gmt":"2019-01-05T01:41:27","slug":"mobile-commerce-and-mobile-payment-systems","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wmintrobusiness\/chapter\/mobile-commerce-and-mobile-payment-systems\/","title":{"raw":"Reading: Mobile Commerce and Mobile Payment Systems","rendered":"Reading: Mobile Commerce and Mobile Payment Systems"},"content":{"raw":"

\"Photo<\/a><\/h2>\r\n

Mobile Commerce<\/h2>\r\nThe term\u00a0mobile commerce<\/strong>\u00a0was first\u00a0coined in 1997 by Kevin Duffey at the launch of the Global Mobile Commerce Forum to mean \"the delivery of electronic commerce capabilities directly into the consumer\u2019s hand, anywhere, via wireless technology.\"\u00a0Many think of mobile commerce as \"a retail outlet in your customer\u2019s pocket.\"\r\n\r\nMobile commerce is worth US$230 billion annually, with Asia representing almost half of the market, and it's\u00a0expected to reach US$700 billion in 2017.\u00a0According to BI Intelligence, in January 2013, 29 percent of mobile users have now made a purchase with their phones. Walmart estimated\u00a0that 40 percent of all visits to their Internet shopping site in December 2012 was from a mobile device. Bank of America projected\u00a0that $67.1 billion in purchases would\u00a0be made from mobile devices by European and U.S. shoppers in 2015.\r\n

Mobile Payment<\/h2>\r\nMobile payment<\/strong>, also referred to as mobile money, mobile\u00a0money transfer, and mobile wallet, generally refers to payment services operated under\u00a0financial regulation\u00a0and performed from or via a\u00a0mobile device. Instead of paying with cash, check, or credit cards, a consumer can use a mobile phone to pay for a wide range of services and digital or hard goods. Although the concept of using non-coin-based currency systems has a long history, only recently has\u00a0the technology to support such systems become widely available.\r\n\r\nMobile payment is being adopted all over the world in different ways.\u00a0In 2008, the combined market for all types of mobile payments was projected to reach more than $600 billion globally by 2013,\u00a0which would be double the figure as of February, 2011.\u00a0The mobile payment market for goods and services, excluding contactless\u00a0Near Field Communication\u00a0or NFC transactions and money transfers, exceeded $300 billion globally in\u00a02013.\u00a0Investment on mobile money services is expected to grow by 22.2 percent during the next two years across the globe. It will result in revenue share of mobile money reaching up to 9 percent by 2018. Asia and Africa will observe significant growth for mobile money, with technological innovation and focus on interoperability emerging as prominent trends by 2018.\r\n\r\nIn\u00a0developing countries, mobile payment solutions have been deployed as a means of extending financial services to communities\u00a0known as the \"unbanked\" or \"underbanked,\" which are estimated to represent\u00a0as much as 50 percent of the world's adult population, according to Financial Access's 2009 Report \"Half the World is Unbanked.\"\r\n

Forms of Mobile Payment<\/h2>\r\nApple Pay<\/strong> is a\u00a0mobile payment\u00a0service that lets certain Apple mobile devices make\u00a0payments\u00a0at retail and online checkout. It digitizes and replaces the\u00a0credit\u00a0or\u00a0debit magnetic stripe card\u00a0transaction at\u00a0credit card terminals. The service lets Apple devices wirelessly communicate with\u00a0point of sale\u00a0systems using a\u00a0near field communication\u00a0(NFC) antenna, a \"dedicated chip that stores encrypted payment information\" (known as the Secure Element), and Apple's\u00a0Touch ID\u00a0and\u00a0Passbook.\r\n\r\nThe service keeps customer payment information private from the retailer, and creates a \"dynamic security code [ . . .] generated for each transaction.\"\u00a0Apple added that they would not track usage, which would stay between the customers, the vendors, and the banks. Users can also remotely halt the service on a lost phone via the\u00a0Find My iPhone\u00a0service.\r\n\r\nhttps:\/\/youtu.be\/3n1c73Etquo\r\n\r\nGoogle Wallet<\/strong>\u00a0is a\u00a0mobile payment\u00a0system developed by\u00a0Google\u00a0that allows its users to store\u00a0debit cards,\u00a0credit cards,\u00a0loyalty cards, and\u00a0gift cards\u00a0among other things, as well as redeeming\u00a0sales promotions\u00a0on their mobile phone.\u00a0Google Wallet can use\u00a0near field communication\u00a0(NFC) to \"make secure payments fast and convenient by simply tapping the phone on any\u00a0PayPass-enabled terminal at checkout.\"\r\n\r\nWhere this new technology will lead the world economy and what its impact on the existing monetary system will be remain to be seen, but we are certain it will continue to evolve rapidly!","rendered":"

\"Photo<\/a><\/h2>\n

Mobile Commerce<\/h2>\n

The term\u00a0mobile commerce<\/strong>\u00a0was first\u00a0coined in 1997 by Kevin Duffey at the launch of the Global Mobile Commerce Forum to mean “the delivery of electronic commerce capabilities directly into the consumer\u2019s hand, anywhere, via wireless technology.”\u00a0Many think of mobile commerce as “a retail outlet in your customer\u2019s pocket.”<\/p>\n

Mobile commerce is worth US$230 billion annually, with Asia representing almost half of the market, and it’s\u00a0expected to reach US$700 billion in 2017.\u00a0According to BI Intelligence, in January 2013, 29 percent of mobile users have now made a purchase with their phones. Walmart estimated\u00a0that 40 percent of all visits to their Internet shopping site in December 2012 was from a mobile device. Bank of America projected\u00a0that $67.1 billion in purchases would\u00a0be made from mobile devices by European and U.S. shoppers in 2015.<\/p>\n

Mobile Payment<\/h2>\n

Mobile payment<\/strong>, also referred to as mobile money, mobile\u00a0money transfer, and mobile wallet, generally refers to payment services operated under\u00a0financial regulation\u00a0and performed from or via a\u00a0mobile device. Instead of paying with cash, check, or credit cards, a consumer can use a mobile phone to pay for a wide range of services and digital or hard goods. Although the concept of using non-coin-based currency systems has a long history, only recently has\u00a0the technology to support such systems become widely available.<\/p>\n

Mobile payment is being adopted all over the world in different ways.\u00a0In 2008, the combined market for all types of mobile payments was projected to reach more than $600 billion globally by 2013,\u00a0which would be double the figure as of February, 2011.\u00a0The mobile payment market for goods and services, excluding contactless\u00a0Near Field Communication\u00a0or NFC transactions and money transfers, exceeded $300 billion globally in\u00a02013.\u00a0Investment on mobile money services is expected to grow by 22.2 percent during the next two years across the globe. It will result in revenue share of mobile money reaching up to 9 percent by 2018. Asia and Africa will observe significant growth for mobile money, with technological innovation and focus on interoperability emerging as prominent trends by 2018.<\/p>\n

In\u00a0developing countries, mobile payment solutions have been deployed as a means of extending financial services to communities\u00a0known as the “unbanked” or “underbanked,” which are estimated to represent\u00a0as much as 50 percent of the world’s adult population, according to Financial Access’s 2009 Report “Half the World is Unbanked.”<\/p>\n

Forms of Mobile Payment<\/h2>\n

Apple Pay<\/strong> is a\u00a0mobile payment\u00a0service that lets certain Apple mobile devices make\u00a0payments\u00a0at retail and online checkout. It digitizes and replaces the\u00a0credit\u00a0or\u00a0debit magnetic stripe card\u00a0transaction at\u00a0credit card terminals. The service lets Apple devices wirelessly communicate with\u00a0point of sale\u00a0systems using a\u00a0near field communication\u00a0(NFC) antenna, a “dedicated chip that stores encrypted payment information” (known as the Secure Element), and Apple’s\u00a0Touch ID\u00a0and\u00a0Passbook.<\/p>\n

The service keeps customer payment information private from the retailer, and creates a “dynamic security code [ . . .] generated for each transaction.”\u00a0Apple added that they would not track usage, which would stay between the customers, the vendors, and the banks. Users can also remotely halt the service on a lost phone via the\u00a0Find My iPhone\u00a0service.<\/p>\n