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Mobile commerce rings into new era: Bipin Preet Singh, Mobikwik

In the last decade or so, the mobile device has essayed a journey of massive transformation due to an increase in their processing power and computational speed. They have moved far beyond voice communication and text messaging. Even entry-level mobile devices today enable internet browsing, emailing, multimedia messaging, multimedia designer replica handbags playback, video communication, as well as downloading and running third party applications.


This technological advancement rolex milgauss relica watches on the hardware side has been complemented by strides in mobile broadband networks, with end-user bandwidth throughput going up by several factors from the early GPRS/EDGE 
networks to present day HSPA and LTE networks. 

That there already existed several channels of communication such as SMS and USSD on mobile networks has only added to the now available access through mobile broadband networks, heralding the soon-to-be-globally-ubiquitous era of mobile computing. 

The mobile subscription is replica rolex extremely personal and individual in nature. This, and the easily verifiable fact that no one fake rolex watches leaves their mobile device behind, whether on personal or professional pursuits, makes the device the best placed to enable a variety of economic activities. 

Several types of economic transactions such as paying for goods, services and utilities either remotely or at point-of-sale, operating bank accounts, making online purchases, sending or receiving funds - can be enabled using the mobile device and subscription. 

The world is now on the threshold of Mobile Commerce being the end-game in mass market mobile services. Mobile Commerce, more than any other emerging mobile services such as mobile education, mobile healthcare and location-based services, promises to deliver the highest impact for all of mankind. 

Till now mobile payments, in a sense, meant operating a point-of-sale card swiping machine using a mobile data enabled SIM. This works only for proximity payments and still requires the use of a financial instrument (credit/debit cards) other than the mobile phone for payments. 

To truly enable proximity as well as remote payments, and to obviate the need to carry physical wallets that hold cash and other financial instruments, a mobile wallet is required. This is a functionality or service that enables a user's mobile device to be employed as a wallet by aggregating several payment instruments and their details. 

The user needs to add cash to the mobile wallet by a process called pre-loading - such funds can be transferred into the mobile wallet by visiting an authorized agent of the wallet provider, or by other channels such as from a traditional bank account, or through credit cards. It resides on the mobile device as a SIM utility, or as an app. 

Several mobile wallets swiss rolex replica store no personally identifiable information on the phone, and can be operated for payment transactions using SMS or USSD access channels. Mobile wallets primarily offer utility bill payments and merchant POS payments. Certain mobile wallet offerings replica rolex watches enable online payments (e-commerce) as well as remittance services (sending money to another person, who may or may not have a mobile wallet). 

Mobile payments are governed by regulatory oversight, and doubly so since they are an intersection of the financial industry rolex submariner replica and the telecom industry, both of which are regulated activities. As such, while the technology exists to offer the full spectrum of mobile commerce activities, it is up to the country's regulators to specify what is permissible and what is prohibited. 

This is especially of import in the case of remittance, which is prone to misuse, such as to circulate funds derived from or for the purpose of carrying out illicit activities. Therefore, taking baby steps is the adopted approach by regulators, ensuring at each step that a framework with the necessary safeguards and sufficient infrastructure exists to maximise utility and minimise nuisance for the most number of users. 

India is witnessing a massive explosion in mobile payments. This August 2013, 8,46,000 transactions have taken place via immediate payment system (IMPS) as compared to 93,715 in September 2012, an eight times increase according to National Payment Corp of India (NPCI). Backing this growth is the RBI, which said mobile payments will be the "game changer both in the financial sector as well as to mobile companies". It announced that it will get "banks and mobile companies to co-operate in rolling out mobile payments". 

The true utility of mobile payments will be realised through a network effect, meaning a large number of users and a large number of merchants and utilities accepting mobile payments. 

This will enable people to feel confident that their physical wallets are no longer required for the supported class of payments. This is further supplemented by person-to-person payments, whereby mobile commerce can play the role that traditional currency plays in today's world.