Mobile commerce, or mCommerce for short, is any transaction that takes place on a mobile device, such as a cell phone or PDA. If you have ever downloaded a ring tone or wallpaper  from your cellular provider, then you are already familiar with mCommerce in its simplest form. Typical payment methods for purchasing ring tones and wallpapers include charging the price of the download to the customer’s monthly bill, deducting the price from pre-paid calling credits, billing to a credit card linked to the mobile device’s SIM card, and billing a credit card through a secure interface. The latter method is expected to grow rapidly as mCommerce as a whole continues to grow.

Technology Behind mCommerce

The ability to interface with an electronic storefront through a mobile device is made possible through technology based on the Wireless Application Protocol (WAP). WAP’s main use is to enable access to the Internet through mobile devices. When you access the Internet through your cell phone, chances are you are using what is known as a WAP browser.  In layman’s term, WAP is the standard that allows mobile users to browse the Internet on a smaller screen and with more simplified commands than a computer’s browser (for example, button input is used instead of mouse input).

Although the use of WAP browsers is on the rise worldwide, the use of these browsers for mobile commerce has been

slow to progress in the United States. European and Asian countries are further along in mCommerce development for several reasons, one of which is that more web-ready browsers are equipped on more phones in Europe and Asia than on phones in the United States. For example, in Japan, most phones are equipped with built-in bar-code readers, which enables consumers to scan a bard code from a magazine advertisement, which in turn launches the mobile device’s browser and delivers the consumer to the advertiser’s mCommerce storefront.

Although phone manufacturers, such as Nokia and Motorola, are working with providers in the United States to develop more WAP browser enabled phones, there is another important reason why mCommerce has been slow to gain acceptance in the United States. Security on mobile browsers is still shaky, and many Americans are hesitant to send their personal information into mobile space.

Security and Privacy Concerns

Currently, the main concern with privacy and security using mCommerce is a lack of mobile payment providers. When a consumer sends their money online, they are used to paying through an established provider, such as PayPal. Also, consumers are provided extra assurance that their payment is occurring on a secure site when they view the “lock” icon in the bottom of their browser. Many mobile devices do not utilize the same secure technology that is used on our computers.

Experts have suggested that mCommerce will not fully catch on until more mCommerce applications are developed that are dedicated solely to transferring payments over mobile devices. Facebook has already taken a step towards establishing its name in mCommerce by announcing a virtual mobile payment deal with Zong, an mCommerce payment service that allows customers to pay simply by entering their mobile number, as opposed to directly entering their credit card information. When a Facebook user purchases Facebook credits, they need only to enter their number, as their credit card information has already been stored and verified through Zong.

Mastercard is also making efforts towards making mCommerce more secure through their MoneySend service using Obopay. With Obopay, consumers are able to transfer money from their bank or credit card using only their mobile number, much like Zong. Obopay already powers Nokia’s new money transfer service, which allows customers to send money to other users via their mobile device, pay bills, and refill prepaid SIM cards. It is expected that having the Mastercard name behind this service will help to develop trust in mobile payments, but for now, this service is only launching in Asia and Africa.

The Future of mCommerce

Although mCommerce will give retailers the ability to sell to anyone, anywhere at anytime, more privacy and security standards must be set before the mCommerce sector can take off. With the development of smartphones which can handle applications, such as the iPhone and Blackberry, it is likely that more mCommerce applications will be developed and become more widely available to consumers.

eCommerce platforms are also starting to accommodate for the expansion into mCommerce. Magento, for example, provides a free iPhone store template for businesses looking to expand into the mobile market. Developers are also working on iPhone templates for osCommerce storefronts as well.

Even though mCommerce must still gain acceptance in order for more consumers and retailers to take advantage of this emerging market, sellers who set up an mCommerce-friendly storefront now will find themselves ahead of the game when the mCommerce wave finally hits. mCommerce is here to stay, and its future is looking bright worldwide.

For Businesses

• Magento is open-source,  so it’s FREE to download (individual support comes at a price, but the online support forum is free to use)!
• The search engine optimization (SEO) features are top-of-the-line in comparison to other platforms.  For example,  Magneto allows merchants to create their own URLs for products on the administrator control panel. Most platforms create a product URL upon creation, which are often times unreadable for the search engines.
• Google Analytics,  a free tool that allows in-depth tracking of website statistics,  comes integrated with the download.
• Multiple stores can be maintained across different domains using only one Magento installation.
• The capability to zoom-in on product images is included.
• Rates for USPS, FedEx, and UPS are integrated at real time, so shipping and handling quotes are always up-to-date.
• Customers can compare products side-by-side.
• There is a one-page checkout system,  so customers are only a click away from ordering products.

Magneto also includes a ready-to-go iPhone theme, which will help retailers compete on the increasingly-popular mobile eCommerce market (mCommerce).  While iPhone users are only a small percentage of all cell phone users,  this is a nice start towards enabling smaller retailers to get their business on the mobile web.

For Developers

• The company backing Magento, Varien, is active in updating the platform’s code and fixing bugs.
• The default template included in Magento is professional and attractive to the average consumer from the get-go.  Magento works off of a theme-based structure that separates  the templates,  layouts, and skins,  so that each aspect is easier to locate in the source code and update.
• Even though the Magento platforms comes with an extensive feature-list at download,  developers are free to create add-ons and plug-ings to enhance the platform’s functionality.
• Many free Magneto themes are readily available for download

Even though Magento includes features at download-time that were typically only achieved through the purchase of add-ons with other systems, it is still a developer-centric platform when it comes to achieving the look-and-feel that a retailer wants to accomplish.  Small business owners wanting to download an eCommerce system that they can stylize and customize on their own may be disappointed with Magento, since a strong knowledge of PHP, AJAX, HTML, and CSS is required to get the most out of this product.  If selecting Magento as their eCommerce platform,  retailers should be sure that they have a knowledgeable team of developers behind them to reach their goals.

Regardless of your business’ size,  Magento is a promising eCommerce platform that can help drive up online profits. With its user-friendliness and simple administrative area, it is no wonder that Magento is soon to be the predominant choice in an eCommerce platform.