M COMMERCE

M Commerce

M-Commerce

Introduction

M-commerce is a term that is used to refer to the growing practice of conducting financial and promotional activities with the use of a wireless handheld device. The term m-commerce is short for mobile commerce, and recognizes that the transactions may be conducted using cell phones, personal digital assistants and other hand held devices that have operate with Internet access. While still in its infancy, the concept of m-commerce has been refined in recent years and is beginning to become more popular.

Discussion

The availability of cellular phones enabled with the ability to send and receive messages using the Short Message Service (SMS), or “text messages,” and the Multimedia Message Service (MMS) gives businesses, merchants and users the ability to provide mobile commerce functionality based upon SMS and MMS communications. Such mobile commerce, or “ m- commerce” services may be marketed by associating the service with a designated phone number or a cellular “short code,” a numeric string of four to eight numbers in length which functions akin to a domain name on the Internet. The mobile phone user may use the designated phone number or short code to send messages via SMS or MMS to request that a transaction take place involving the merchant or one or more other parties. These services, branded with the designated phone number or short code, may allow a business/merchant to build “brand equity” in the phone number or short code, akin to a business/merchant building brand equity in an “800” phone number or an Internet domain name.

One of the basic examples of m-commerce has to do with receiving sales promotions via the hand held device. The most common application would involve the service provider sending text messages to the subscriber that promote new product offerings, free trials on additional services, or other types of promotional campaigns. The subscriber is not charged a fee for the text message, and often can respond with a return text message without incurring any type of fee. Several major cellular services off subscribers to opt into this type of m-commerce, or be excluded from receiving the messages.

Offers that are received through the use of m-commerce may be accepted and paid for using the hand held device. For example, if a customer chooses to respond to an offer, there are usually several payment options available. The most common option is adding a charge to the monthly ...