BUAD 307






PowerPoint Narration

People increasingly access the Internet through cellular phones and other portable devices.  Today, these can be used two ways.  Web sites can be accessed through a browser.  In addition, certain firms may make “apps” that make accessing their particular content easier, possibly adding certain security features.  For example, a bank may create an app that lets customer access account information and perform transactions.  Thus, the design can be made to make the best use of the available screen space.  Information service providers such as Yelp may create applications optimized for the display of relevant information that they provide.

M-Commerce tends to be more developed in certain countries—e.g., Japan, Finland, and even India—than in the U.S.  In places where fewer people have easy access to computers, accessing the Internet through a smart-phone will tend to be more popular—thus the emphasis on M-Commerce in India, for example. Recent research in the United States has also found that a large proportion of young people from a lower socio-economic background report a cell phone as their primary means of accessing the Internet.

One significant promise of M-Commerce is that this may make micro-payments more cost effective.  It is generally very costly and difficult to collect small amounts of money—say, 25 cents to $2.00 through traditional credit cards.  Usually, the bank involved will want a minimum of $0.30 plus some 1.75-3.5% of the amount charged.  The percentage is not as big a problem, but $0.30 eats a great deal of a 50 cent—or even $1.00—charge.  However, since cell phone service providers already have an established billing relationship with its customers, they may be able to collect these small amounts more easily, keeping costs down.


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