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Definition of Mobile Commerce

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Mobile commerce allows consumers to buy products via their mobile device.

Mobile commerce (m-commerce) is defined as the buying and selling of products and services through the use of wireless mobile devices. M-commerce is considered the next generation of e-commerce and this particular technology will allow users to shop through the Internet without a plug-in terminal.

  1. History

    • Mobile commerce officially began in 1997 in Helsinki, Finland. Coca-Cola vending machines were installed that accepted monetary payments from cell phones through the use of SMS text messaging technology.

    Operation

    • WAP (Wireless Application Protocol) allows mobile devices to view the Internet via mini-browsers. Hypertext language is what makes Internet viewing possible and WAP standards translate these codes specifically for mobile phone use.

    Japans Influence

    • Japan's top cell phone carrier (NTT DoCoMo) launched the first 3-G network in 2001. As a result, the Japanese people became comfortable with mobile commerce technology, helping to make Japan a leading mobile commerce nation.

    Uses

    • Mobile commerce can be used as an electronic wallet to make purchases, to download books for entertainment, and to surf the Web. More serious uses such as paying bills or purchasing a plane ticket that is downloaded to the mobile device can all be completed via m-commerce.

    Future

    • Mobile commerce has caught on in some parts of the world but in other areas, such as the U.S., barriers to m-commerce exist. User limitations, security concerns and negative perceptions about m-commerce are being addressed in order to keep m-commerce a viable form of business.

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  • Photo Credit one million dollars and mobile phone image by Veniamin Kraskov from Fotolia.com

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