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IMPACT OF MOBILE COMMERCE & ITS APPLICATION WITH SECURITY IN

INDIAN CONTEXT

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 International Journal of Recent Trends in Mathematics & Computing
ISSN : (Online) | ISSN : (Print) IJRTMC Vol. 1, Issue 1, Oct 2012

IMPACT OF MOBILE COMMERCE & ITS APPLICATION WITH

SECURITY IN INDIAN CONTEXT
Rajesh Kumar,
Sr. Programmer,
The Technological Institute of Textile & Sciences, Bhiwani
Dr.Rahul Rishi
Professor, Department of Computer Science & Engineering
University Institute of Engineering & Technology
MD University Rohtak
Dr.Mukesh Kumar
Associate Professor, Department of Computer Engineering
The Technological Institute of Textile & Sciences, Bhiwani

Abstract. M-Commerce is defined as any transaction with monetary value that is conducted via a mobile
telecommunications network. M-Commerce like E-commerce can be B2B (business to business), P2P (person
to person) or B2C (business to customer) oriented. The framework divides into couple sub areas based on
user’s distribution criterion. Mobile E-commerce addresses electronic commerce via mobile devices, where
the consumer is not in physical or eye contact with the goods that are being purchased. On the contrary in M-
Trade the consumer has eye contact with offered products and services. In both cases the payment procedure
is executed via the mobile network. A brief research on the state of the market is given to present a framework
for possible solutions. The purpose of this paper is to describe the factors that affect the introduction of a
successful M-Payment system.

I. INTRODUCTION (WHAT IS M-COMMERCE)

M-commerce (mobile commerce) is the 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. 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.
There have been different definitions of M-Commerce. Lehman defines M-Commerce as “the use of mobile
hand-held devices to communicate, inform, transact and entertain using text and data via connection to public
and private networks “[1].
M-Commerce contributes the potential to deliver most of what the internet can offer, plus the advantage of
mobility. M-Commerce gives mobile communication devices as mobile phones and personal digital assistants
(PDA) the ability to pay for goods and services.

II. M-COMMERCE SERVICES

M-Commerce is an emerging discipline involving applications, mobile device, middleware, and wireless
networks. While most of existing E-Commerce application can be modified to run a wireless environment, M-
Commerce also involves many more new applications that become possible only due to the wireless
infrastructure.
These applications include mobile financial services, user and location specific mobile advertising, mobile
inventory management, wireless business re-engineering, and mobile interactive games. In addition to device
and wireless constraints, M-Commerce would also be impacted by the dependability of wireless infrastructure.
M-Commerce existing and futures possible application include
 Mobile banking service (check account information, money transfer)
 Mobile trade service (stock quotes, selling/buying)
 Credit card information (account balance)
 Life insurance account information (account information, money transfer)
 Airline (online reservation, mileage account check)
 Travel (online reservation, timetables)
 Concert ticket reservation (online or telephone booking)
 Sales (online books, CDs)
 Entertainment (games)
 News/information (headline, sports, weather, horse racing information, business,

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 technology, regional)
 Database, application (yellow pages, dictionary, restaurant guide)
 Location based application (area information and guides)
III. PROTOCOLS AND TECHNOLOGIES IN USE
No new special network standard is needed to carry out M-Payment transactions. MPayments are therefore
carried out through existing networks, which could be Cellular networks (GSM/2,5G/3G), Wireless LAN
(IEEE 802.11 protocol), Bluetooth and Infrared (irDa). The most important technologies for M-Payment
connectivity are: SIM Application Toolkit (SAT), WAP/WTLS/WIM, Voice and Manufacturer specific
applications. SAT is a technology that allows configuring and programming the SIM card [2]. The SIM card
contains simple application logic that is able to exchange data with the SMSC, to carry out M-Payment
transactions. The specific mobile operator provides the application logic and is responsible of providing the
SIM card. Phones equipped with a WAP-browser are able to exchange data with a webserver. Data is
transmitted via wireless application protocol and the networks are GSM, 2.5G or 3G. WTLS is a layer in the
WAP stack and is the wireless edition of the SSL 3.0 in a reduced scale. WTLS can provide secure
connections for transferring confidential data [3]. WIM is a module for storing data in the mobile device and
is usually used in relation to WAP transactions. WIM is used with WTLS transaction to protect permanent,
typically certified, private keys. The WIM stores these keys and performs operation using these keys [4]. The
end-user can via a normal phone call state his credit card number to the merchant that transfers the funds via
interface provided by a PSP. A voice response system at the payment service provider can also call the end-
user and guide him through a payment procedure. Voice recognition can also be used as an authentication tool
for payment settlement. The mobile phone manufacturers can chose to install native applications, which in
interaction with one of the above technologies enables M-Payment opportunities.[5]

IV. M-COMMERCE IN INDIAN CONTEXT

Very few industries have witnessed the kind of growth telecom has seen in India. In the last five years the
mobile has literally been a part of the upward mobility of the average Indian. The tea vendor, the taxi driver,
the farmer, the housewife, just about everyone has a monthly budget to keep their mobile phone alive. Early
2006 approximately 98 million (TRAI March 2006) people in India owned mobile phones. Late last year in a
single month 2.9 million new Indian mobile phone subscribers added: the GSM subscriber base grew by 2.11
million users (for a total of 65 million) and the CDMA platform added 0.8 million (for a total 20 million).
According to Internet and Mobile Association of India, the m-commerce market size is reported to be moving
from Rs 9500 cr. to Rs 15000 cr. by 2010. Telecom Regulatory Authority of India (TRAI) states that 30% of
the land area in India is covered by m-networks. The subscribed include 300 million (13%) of the Indian
population.[6] Many big names like Tata, Reliance and Bharti are in the telecommunications arena. Also India
is the second largest mobile handset market in the world. Nokia, Qualcomm, Sony, Motorola have their
establishments in India. Other big companies are on their way to setting up base in India.
Paymate is another mobile payment gateway that is offering similar service to what Bharti plans to offer. Very
recently, Magic bricks, one of the leading real estate portals came up with their mobile real estate portal.
There are also host of other M-Commerce application providers in India.
With the entry of Bharti in this arena, M-Commerce in India will take much bigger proportions as they already
have more than 50 million strong subscriber base who are readymade customers for M-Commerce
applications.

V. TECHNOLOGY USED IN E-COMMERCE AND M-COMMERCE

Technology E-Commerce M-Commerce
Device PC Smart phones, pagers, PDAs,
Symbian (EPOC), Palm OS, Pocket
Operating System Windows, Unix, Linux
PC, proprietary platforms.
Presentation Standards HTML HTML, WML, HDML, i-Mode
Phone.com UP Browser, Nokia
Microsoft Explorer,
Browser browser, MS Mobile Explorer and
Netscape
other micro-browsers
TCP/IP & Fixed GSM, GSM/GPRS, TDMA, CDMA,
Bearer Networks
Wireline Internet CDPD, paging networks

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VI. CHALLENGES IN IMPLEMENTING M-COMMERCE

Security Issues
Fundamental to the concept of e-commerce is a commercial transaction between two parties carried out by
electronic means. The applications of this concept are almost limitless but may involve any thing from a few
cents to thousands of rupees in the value. In the M-commerce domain the bounders will be similarly wide
ranging, although with a greater focus on location based information services. The Distribution of transaction
value may differ.
Experience has shown that wherever something is of value it will be targeted for attack, even small value
transactions are worth attacking if the are enough of them. A key element of ensuring security of M-
Commerce service must therefore, be of securing the transaction itself.
The exact nature of the security issues faced will depend on the operator’s level of involvement in the
transaction. Issues of responsibility and the liability will be fundamental in establishing services and
managing exposure to loss the question of who is responsible for a particular aspect is party derived from the
deferent levels of involvement that the net work operator may take in an M-Commerce transaction.
At simplest level the network operator provides a means of transaction part and network inter connection for a
transaction between two independent parties, the customers and an M-commerce service provider. At a higher
level of involvement, the net work operator may provide a hosted M-commerce environment for service
providers or may actually manage a branded service on the part of a retailer and at the highest level the
operator may act as an intermediately in the transaction and take responsibility for mutual authentication of
the parties and, potentially for facilitating the settlement of financial exchange.
Transaction: Protecting the transaction parties and their data by providing at acceptable level of security
consumers are all comfortable with conducting Transaction face-to-face the is a physical exchange of goods
and payment using a trusted mechanism be it cash, cheque or card. To comfort derives in part from familiarity
may people are also familiar with and trust, mail order transaction by post or over the phone, even though
there are many opportunities for failure in an electronic world trust is a more abstract concept.
Do you trust to site you are visiting; do you feel it is what it claims to be?
Can you trust to site with your credit card details?
Do you trust to site will be able to deliver the good ordered.
The issue of trust also applies in to opposite direction; can the “customer” be trusted? Are they or an element
of their transaction, potentially fraudulent? When E-commerce becomes mobile the issue of trust becomes
even more serious as the customers is no longer tied to a physically location. The issue of sub-scrumptious
fraud that all mobile network operators have faced now has implication for the M-commerce service provides,
as well as the network operator.
Information: Protecting valuable and sensitive information about customers. Tele communications companies
already hold significant amounts of valuable and confident information about their customers in an M-
commerce environment, valuable data such as credit card information encryption keys and digital signature
may also be stored. Inter connections of internal systems and network will increase the potential for illicit
external access, with the potential for internal fraud being even present.
Infrastructure: Protecting to network infrastructure from attack. These are considered capacity but it is worth
explaining at to outset that to exact nature of the service simple mended will influence the involvement of the
operator in the finance transaction. Various payment models have been processing ranging from credit card
transactions between customers and vendor, through to billing of service direct to the customer’s Telephone
bill for collection by the network operator. These have different impacts on the liability of to operator.
As operator becomes involves in Transactions, either by processing payment-extending credit or by acting.
As clearing Houses, their roles will increasingly evolve towards acting as financial institutions and they will
need to emulate many of the process and security controls of such institutions.
However M-commerce services are ultimately packaged, there will be a need to ensure the security and
integrity of the underlying infrastructure increased. Technical protection and isolation of internal systems and
of the net work itself will be necessary in view of the greater exposure through public net works access. The
issues of protecting customer’s data and financial transactions and of ensuring the integrity of billing
mechanisms and certification services must also be addressed and not over looked in the rush to develop and
launch new service.
Managing Risks: Managing the risks in M-commerce service will receive a combination of controls, both
technical and procedural. One of the biggest challenges falling operators will be that of ensuring the Co-
Ordination of these controls in a strategic manners to ensure complete converge understanding the applying
the controls effectively will demand a combination of skills from different security back grounds, ranging

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from technical solutions through secure process design to physical security. Ongoing operational
management of the various processes and systems will also be fundamental to success.
Monitoring and Detection: Fraud monitoring and detection have become part of the established telephone
infrastructure. Most operators have same from of monitoring, ranging from billing system based reports
through to dedicated fraud detection systems and monitory systems. And monitory teams these systems are
largely rule or these should-based and analysis switch-based signaling or call detail records. In the
environments based on data where packets and massages have replaced voice calls, and networks may carry
many types of communications including
financial transactions where will the next generation of monitoring come from there will be the requirements
on operators to monitor the behavior of their customers of service usage’s and access and of contents itself.
This clearly requires a much broads understanding of security risks and of the nature of the service being used
by customers without this understanding it will be impossible to distinguish between legitimate and non
legitimate or unwanted traffic. Again this will require Co-Operation between operator’s service and content
provide to define responsibilities and the requirements and to ensure appropriate coverage and protection.
VII. OPPORTUNITIES AHEAD
Mobile telephony was introduced in Indian markets in mid- 1990s. In the last few years, the sector has
witnessed tremendous growth. The subscriber base is adding more and more customers every year. Both
Public Players and Private Players are competing hard to capture more and more market share. Private sector
capture 78% of the market share in Indian mobile segment and public sector capture only 22%. The private
sector has done more than expected.
List of countries by number of mobile phones in use [8]
Last updated
Rank Country or region Number of mobile phones Population % of population
date
World Over 5.6 billion 7,012,000,000[1] 79.86 2011[2]
1 China 987,580,000 1,341,000,000[3] 73.6 Jan 2012[4]
2 India 903,727,208 1,210,193,422[5] 74.89 Jan 2012 [6]
3 United States 327,577,529 310,866,000[7] 103.9 June 2011[8]
4 Indonesia 250,100,000 237,556,363 105.28 May 2009[9]
January
5 Brazil 245,200,000 192,379,287 [10] 127.45
2012[11]
6 Russia 224,260,000 142,905,200[12] 154.5 July 2011[13]
7 Japan 121,246,700 127,628,095 95.1 June 2011[14]
Jan 2012[16]
8 Pakistan 114,610,000 178,854,781[15] 66.5
[17]
9 Germany 107,000,000 81,882,342 130.1 2009[18]
10 Nigeria 90,583,306 140,000,000 64.7 Feb. 2011[19]

VIII. CONCLUSION
While e-commerce continues to see phenomenal growth in India, mobile commerce is still in its infancy. But,
both the business world and the telecommunications industry are starting to see m-commerce as a major focus
for the future. Indian Private and Public sections in telecommunications industry are competing hard to
capture more and more mobile market share. As wireless network grows, it is expected that emerging wireless
and mobile networks will create new trade models for mobile operators and provide new avenues for growth
in m-commerce, offer new applications to consumers and business in India.
Mobile Commerce players need to improve the user interface soon and implement innovative pricing
structures. Despite the initial frustrations of the users, consumers envision that once the glitches are worked
out, mobile applications will become a common part of their daily lives. Most mobile commerce applications
in India is in sections such as buying and selling of products and services, download image, game,
music and video files, book and purchase tickets, GPS and traffic advisories. Also there are potential risks in
m-commerce Investment and applications in India. Getting a return on m-commerce investment can take a
long time, and organizations or individuals aren't always prepared to stay afloat until they recoup that money.
Lack of trust is also a remarkable factor influencing the uptake of m-commerce in India. Generally, in India
Mobile phone have registered significant growth in last few years (over 900 million in Jan 2012) and mobile
commerce is gradually but surely showing signs of a healthy recovery.
IX. REFERENCES
1. Lehman Brothers Moving in Mobile Media Mode (1995) p.8

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2. Guthery Scott B., Cronin Mary j, Mobile Application Development with SMS and the SIM Toolkit,
McGraw-Hill (2002)
3. WMLScript Crypto API Library Specification, WAP-161-WML Script Crypto - 20010620- a, Version 20-
Jun-2001.
4. Wireless Application Protocol Forum Ltd, "Wireless Identity Module Specification, WAP- 260-WIM-
20010412-1", Version 12-July-2001.
5. M-Commerce Services Ljupco Antovski Marjan Gusev Institute of Informatics, Faculty of Natural Sciences
and Mathematics Ss. Cyril and Methodius University, 1000 Skopje, FYRO Macedonia3
6. Case studies in m-commerce applications using mobile phones: potential for micro & macro level user
groups in India Kshitiz Singh Pradeep Yammiyavar
7. Government Policies & Regulations: Impact on Mobile Commerce in Indian Context Deepali Sharma,
Indian Broadcasting (Engineering) Services, Government of India
8. http://en.wikipedia.org/wiki/List_of_countries_by_number_of_mobile_phones_in_use

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