http://economictimes.indiatimes.com/News/News_By_Industry/Telecom/
Mobile_commerce_sets_cash_register_ringing_for_companies/
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mCommerce market trends:
- The Internet and Mobile Association of India estimated that the m-commerce market in India was worth Rs 9,500 crore in 2007. India currently has some 270 million-mobile subscribers.
- players provide solutions across sectors or vertical-specific mobile commerce services
- Ngpay, the mobile commerce solutions brand of Bangalore-based JiGrahak, on Wednesday announced that it had crossed one-lakh registered users in under three months, a clear indication that the nascent Indian mobile commerce market is taking surefooted steps to maturity. Ngpay is akin to a virtual mall on the user’s handset that helps book tickets, top up phones and pay bills, apart from standard bank account services. Ngpay focus has been to provide a convenient, secure and easy-to-use experience. Ngpay, which inked a deal with HDFC Bank last month for mobile banking, is already the leading mobile sales channel for IRCTC and Fame Cinema. It already accounts for 4% of sales in major markets for Fame. The solution has certified financial-grade security and works on entry-level mobile handsets, allaying two of the main fears among consumers: lack of security and complexity of use.
- Paymate has alliances with Tata Indicom and Kingfisher Airlines for mobile-linked payments. And its latest initiatives include utility bills and LIC insurance premium payments through one’s handset.
- Airtel had announced the launch of a range of mobile commerce solutions, including mobile money transfer (MMT), post-paid bill payment and pre-paid recharge on the handset. Airtel is partnering with ICICI Bank, HDFC Bank, SBI, Corporation Bank and VISA to enable these payments using a solution that has been developed Bangalore-based firm mChek.
- makemytrip.com announced that it has launched a mobile travel product — again developed by mChek — that helps searching, booking and paying for flight tickets without needing a GPRS subscription.
- Obopay Payment Services, the India arm of California-based Obopay, is planning to offer global remittances as another service, apart from the vanilla fund transfer. Unlike what Western Union, the most popular service provider for such transactions, typically does, Obopay is planning to remit money from overseas directly to the bank account linked to the phone.
- Tanla Solutions’ acquisition of Openbit gives it a clear edge in terms of enhancing its offering in the on-device mobile payment segment. It could also help Tanla expand operations in newer geographies and create a sustainable revenue stream. Openbit has strong tie-ups with players such a Nokia and has its software products installed in 20 million Nokia phones. This deal can help Openbit extend its relationship with Nokia in countries such as China and India, where mobile subscribers are being added on a monthly run-rate of 8 million.
Business models:
- how does the payment brokers gets the money
– whether subscriber pays?
– payment receiving companies pays as it avoids usage of their expensive human resources/handling
– advertisement
– can some of the mcommerce players start leasing out their capability to interconnect with the payment gateways? That means the folks who are interacting with the customer will have to offer unique proposition like payment mechanism, cash back/loyalty program reach, reliability, customer care
Technical solution:
- On device either as an application or as SIMTK option, bearer either GPRS or SMS/USSD
pros and cons?
- Server side – can handle as a WAP URL request or as SMS/USSD application
– WAP URL – WAP server handling the request and connecting to the external payment gateways
– SMS/USSD – gateway to connect to different operator SMS network and from then on connecting to the external vendors payment gateways
– connecting to payment gateways is a challenge as it will involve complying to the other party’s security and connection setup the debit/roll back procedures
– payment either from the credit card or from the operator’s prepaid or calling cards, also virtual money cards like ITZ cash card can be looked at
– loyalty platforms for end users to “stick” to their service
– customer care
- small bluetooth based printer to print the receipt