Mobile Commerce

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MOBILE COMMERCE
The Future Is Here

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Mobile Commerce - White Paper

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Abstract
Mobile commerce was born in 1997 when the first two mobile phone enabled Coca Cola vending machines were installed in Finland. They used SMS text messages to send the payment to the vending machines. In 1997, the first mobile phone based banking service was also launched in Finland using SMS. Mobile Commerce also known as mCommerce allows consumers the ability to conduct commerce, using a mobile device e.g. a mobile handset (cell phone), PDA, smartphone and other emerging mobile equipment. Mobile Commerce has been defined as follows: “Mobile Commerce is any transaction, involving the transfer of ownership or rights to use goods and services, which is initiated and/or completed by using mobile access to computer-mediated networks with the help of an electronic device.” mCommerce represents a enormous opportunity for business owners to increase sales and customer loyalty. This is especially true in a dreadful economy that has seemingly remained stagnant for the past 3 years. Where does this opportunity lie exactly? How about in he fact that while 80% of Americans own a cell-phone, only 7% of them have purchased goods or services with their cell phone, according to Nielsen. While mCommerce is still years from being universal in a mass-market industry, those businesses that become early adopter’s and position themselves ahead of the curve will stand the best chance to reap the benefits from future mCommerce trends and innovative technology. This white paper will focus on 4 mCommerce topics: 1. 2. 3. 4. mCommerce history and current statistics How to make your website mobile friendly Simple mCommerce ideas to drive mobile sales Important metrics to analyze the effectiveness of mCommerce initiatives

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Mobile Commerce - White Paper

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mCommerce History and Current Statistics
It might be wise to start of with a little background on mCommerce and follow the trail of technology and significant moments of mCommerce growth. Mobile commerce was introduced back in 1997 when Coca Cola installed the first two mobile phone enabled vending machines in Finland. They were able to send mobile payments to the vending machines via SMS text messages. It was in the same year and country that an mCommerce based banking service was introduced as well. The first mCommerce internet platform was launched in 1999 by a Japanese company called I-mode. I-Mode would be similar to T-Mobile’s web2go browsing interface which allows users the ability to browse the net, view email, download games and access other services. One must also keep in mind that North America typically lags behind most European and Asian markets when it comes to mobile technology. There are many reasons for this including lack of high end semi conductor manufacturing facilities, universal mobile platforms and standards and of course profit related issues. For instance, here in the U.S. “unlimited” cell phone plans were none existent among major carriers a year ago while in the European markets it has been the norm and in some cases is the law. While Japan and Europe rolled out 3G in 2001, the U.S. didn’t introduce 3G until 2003. Below is a list of mCommerce and mobile related statistics:

China has the world’s largest mobile market with more than 750 million subscribers • 50 million iPhones have been sold as of April 8, 2010 • In 2013, the number of mobile phone users in the US is predicted to reach 255 million, representing 80% of the population phone subscribers with only 174 million in 2009

Brazil was the BRIC country with the lowest number of mobile • Purchasing “Train or Plane Tickets” (30%) was the most popular mCommerce application in France in 2009 are related to shopping

6 out of the top 10 selling...
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