M-commerce is a subset of e-commerce that deals with electronic transactions using mobile communication equipment. It refers to electronic transactions and businesses such as financial services or shopping, the only difference with e-commerce being that the medium is wireless rather than wireline.

Mobile commerce (m-commerce) is a type of e-commerce conducted through mobile devices such as mobile phones, personal digital assistants (PDAs) and other devices with a wireless connection .M-commerce depends on the availability of mobile connectivity.

The increased mobility and reach of wireless transactions grants the opportunity to provide enhanced services to customers. It makes possible the concept of delivering value to the customer at all times, irrespective of his or her location, as long as he/she is within connection range. It also thereby provides value to information itself; although it may be readily accessible in households or offices through other media such as the internet or television, a person on the move would not be able to access it as readily and therefore be willing to pay for it.

It is buying and selling of goods and services through wireless handheld devices such as cellular telephone and personal digital assistants (PDAs). Known as next-generation e-commerce, m-commerce enables users to access the Internet without needing to find a place to plug in.

Payment mechanisms (micro-payments) are key to the utility of m-commerce. M-commerce brings opportunities to small businesses both to sell new services and to operate more efficiently. The emerging technology behind m-commerce, which is based on the Wireless Application Protocol (WAP), has made far greater strides in Europe, where mobile devices equipped with Web-ready micro-browsers are much more common than in the United States.

Mobile commerce is part of the shift of technology into mainstream business and everyday life. It is the use of handheld wireless devices such as mobile phones and palm pilots to communicate, interact and transact via high-speed connection to the internet. While these technologies may provide benefits and new opportunities for consumers they may also give rise to sharp practices that can affect vulnerable consumers in particular.

This does not mean that m-commerce would be restricted to simple tasks like information dissemination or e-mail; with time, service models of much higher sophistication than even e-commerce are expected to appear. The main device used in m-commerce is expected to be mobile phones, as pagers are of limited utility due to one-way pathway and inability of subscribers to initiate data-traffic.

Advantages Of M-Commerce

• Increased reach: the presence of a wireless link between the customer and the service provider eliminates the need for a fixed interface such as a computer for communication. Providers of e-commerce services can therefore reach customers over a longer range, creating the opportunity for new value added services.

• Convenience: the small size and ease of use of mobile receivers, coupled with freedom from problems caused by infrastructure, makes for a higher degree of user convenience.

• Customization: the service provider has access to data about the user’s preferences and status which facilitates better, personalized service. In addition, the service provider can be constantly updated about the current status and location of the customer so that the service can be customized; for instance, a request for a certain product can be met with the nearest possible source.

• Quick access: connecting through a mobile is faster than dial-up connections using wireline modems.

However, one important drawback of the current mobile systems is that it is based on circuit-switching technology, which increases the cost and inconvenience for subscribers who wish to obtain data over mobile phones. Further, mobile data transfer is limited to mainly text applications currently, as mobile technology does not provide sufficient bandwidth for high-capacity graphics-based m-commerce transactions; however, using new high bandwidth technology (GPRS), connection to the wireless network would be speeded up, bringing information to and from customers at a much faster rate.

Applications of M-Commerce

1) Finance and Applications

Many applications in the service industsry, such as banking, travel, stocks, and more can be conducted with wireless devices. Shopping can be done from mobile devices, too.

2) Intrabusiness Applications

Large number of Intra business applications, including inventory management, sales force automation, wireless voice, job dispatching, wireless office, and more are evident inside organizations.