CASE 6.1 THE BATTLE FOR THE MOBILE WALLET

CHAPTER 6
Wireless, Mobile
Computing and Mobile
Commerce
Copyright John Wiley & Sons Canada1
Chapter 6:
Wireless, Mobile Computing and Mobile
Commerce
6.1 Wireless Technologies
6.2 Wireless Computer Networks and Internet
Access
6.3 Mobile Computing and Mobile Commerce
6.4 Pervasive Computing
6.5 Wireless Security Issues
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LEARNING OBJECTIVES
1. Describe the four main types of wireless transmission
media. Identify at least one advantage and one
disadvantage of each type.
2. Discuss the basic purposes of short-range, mediumrange, and long-range networks. Explain how
businesses can use at least one technology employed
by each type of network.
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LEARNING OBJECTIVES
(CONTINUED)
3. Discuss the five major m-commerce applications.
Provide a specific example of how each application can
benefit a business.
4. Define “pervasive computing”, describe two
technologies that underlie this technology. Provide at
least one example of how a business can utilize each
one.
5. Identify the four major threats to wireless networks.
Explain, with examples, how each one can damage a
business.
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CASE 6.1 THE BATTLE FOR THE
MOBILE WALLET
The Problem
– To satisfy customers and keep their business, retailers are looking for
strategies to speed up the checkout process and improve the overall
customer experience. One strategy is to rely on customers’ smart
phones as a replacement for all of their credit and debit cards. Instead
of swiping a plastic card at the checkout counter, consumers merely
wave their phones a few inches above a payment terminal. This process
uses a contact-free technology called near-field communications or
mobile wallet. The issues are:
• major battle among large corporations for market share (Visa, MC, PayPal,
etc.)
• companies (i.e. Starbucks) are developing proprietary mobile wallet
technologies
• retailers, have to install terminals that accept mobile payments
Source: Slavoljub Pantelic/ Shutterstock
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CASE 6.1 THE BATTLE FOR THE
MOBILE WALLET
The Solutions
– Mobile phone carriers. Three large cellular providers in
Canada—Bell, Rogers, and TELUS—have a joint venture called
EnStream that creates a digital wallet into which customers of
card-issuing banks can easily move their accounts.
– Credit card issuers. In 2000, RBC (Royal Bank of Canada,
www.rbc.com) and BMO (Bank of Montreal, www.bmo.com)
formed a joint venture called Moneris (www.moneris.com).
Moneris allows consumers to make purchases with the tap of a
button, instead of having to enter their credit card number, billing
address, and other information each time they make a
transaction.
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CASE 6.1 THE BATTLE FOR THE
MOBILE WALLET
The Solutions Continued
– Technology companies. Google has its own payment
system called Google Wallet
(www.google.com/wallet/how-it-works/). PayPal has
developed PayPal X, which has evolved into XCommerce (www.x.com).
– Individual companies. Starbucks has a pay-by-phone
service (www.starbucks.ca) and Tim Hortons has
similarly gone to paperless payments (although it is
not considered a mobile wallet). You can use a debit
card, credit card, or load money onto your Tim
Hortons card for contact-free payments.
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CASE 6.1 THE BATTLE FOR THE
MOBILE WALLET
The Results
– The potential for large revenue streams is real, because mobile
wallets have clear advantages. For example: Which are you
more likely to have with you at any given moment—your phone
or your physical wallet? Also, keep in mind that if you lose your
phone, it can be located on a map and remotely deactivated.
Plus, your phone can be password protected. Your physical
wallet, however, does not have such tools.
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CASE 6.1 THE BATTLE FOR THE
MOBILE WALLET
Discussion
– What are the benefits and drawbacks for using the Mobile
Wallet?
• For consumers?
• For retailers?
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WIRELESS V. MOBILE
•
•
Wireless means exactly what it says: without wires.
In contrast, mobile is something that changes its
location over time.
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DEFINITIONS
•
•
•
Mobile computing involves a real-time, wireless
connection between a mobile device and other
computing environments, such as the Internet or an
intranet.
Mobile commerce (m-commerce) involves e-commerce
(EC) transactions that are conducted with a mobile
device.
Pervasive computing (ubiquitous computing) means
that virtually every object has processing power with
wireless or wired connections to a global network.
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WIRELESS DEVICES
•
Wireless devices provide three major advantages to
users:
1.
2.
3.
They are small enough to easily carry or wear.
They have sufficient computing power to perform productive
tasks.
They can communicate wirelessly with the Internet and other
devices.
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CAPABILITIES OF WIRELESS
DEVICES
–
–
–
–
–
–
–
–
–
Cellular telephony
Bluetooth
Wi-Fi
Digital camera
Global positioning system
Organizer
Scheduler
Address book
Calculator
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– E-mail access
– Short message service
(SMS)
– Instant messaging
– Text messaging
– MP2 music player
– Video player
– Internet access
– QWERTY keyboard
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6.1 WIRELESS TECHNOLOGIES
•
Individuals find wireless devices convenient and
productive to use for several reasons.
– They can make productive use of time that formerly was wasted
(for example, the time spent commuting to work on public
transportation).
– Because people can take these devices with them, their work
locations are becoming much more flexible.
– Wireless technology enables working time to be scheduled
around personal and professional obligations.
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6.1 WIRELESS TECHNOLOGIES
•
Wireless devices: are small enough to easily carry or
wear, have sufficient computing power to perform
productive tasks and can communicate wirelessly with
the Internet and other devices.
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HISTORY OF THE CELL PHONE
•
Check out the history of the cell phone in images
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THE POWER OF CELL PHONES
•
•
By 2011 there were 6 billion (representing more than 85
percent of the world’s population at that time). This
represents the fastest global diffusion of any technology
in human history.
Cell phones have made an even bigger difference in
less time in underdeveloped areas where land lines are
scarce. Cell phones have become the driving force
behind many modernizing economies.
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THE POWER OF CELL PHONES
•
•
•
•
Cell phones can heavily influence politics.
Your cell phone now can be your wallet.
In many large cities, cell phones are being used to
transmit real-time traffic information, such as automobile
speeds, the extent of traffic jams, and expected travel
times, and to pay for parking.
Femtocells work with any cell phone, and they relieve
congestion on cell towers and cellular frequencies by
creating extra capacity at very low cost.
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WIRELESS TRANSMISSION MEDIA
•
Wireless media, or broadcast media, transmit signals
without wires. The major types of wireless media are:
–
–
–
–
microwave
satellite
radio
infrared
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SATELLITE FOOTPRINT
COMPARISON
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WIRELESS TRANSMISSION MEDIA
•
•
Microwave Transmission
Satellite transmission
– Geostationary Orbit (GEO)
– Middle Earth Orbit (MEO)
– Low Earth Orbit (LEO)
•
•
Internet Over Satellite (IOS)
Radio
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HOW THE GLOBAL POSITIONING
SYSTEM WORKS
•
Click here to go to a link explaining GPS capabilities.
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GPS SYSTEMS
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OTHER GPS
•
Three other global positioning systems are either
planned or operational:
– Russian GLONASS
– European Union GALILEO
– China BEIDOU
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INFRARED
•
A test to see if your TV remote control is working
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6.2 WIRELESS COMPUTER
NETWORKS AND INTERNET ACCESS
•
Short range wireless networks
– Bluetooth, Ultra-Wideband, Near-Field Communications
•
Medium range wireless networks
– Wireless Fidelity (Wi-Fi), Wi-Fi Direct, MiFi, Wireless Mesh
Networks
•
Wide area wireless networks
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SHORT RANGE WIRELESS
NETWORKS
•
•
•
Bluetooth
Ultra-Wideband
Near-Field Communications
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BLUETOOTH
•
Click here to access industry information on Bluetooth
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ULTRA-WIDEBAND (UWB)
•
•
Ultra-wideband (UWB) is a high-bandwidth wireless
technology with transmission speeds in excess of 100
Mbps. Example: streaming multimedia from, say, a
personal computer to a television.
This article discusses the use of UWB in fire-fighting.
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NEAR-FIELD COMMUNICATIONS
(NFC)
•
Near-field communications (NFC) has the smallest
range of any short-range wireless network. It is
designed to be embedded in mobile devices such as
cell phones and credit cards.
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MEDIUM RANGE WIRELESS
NETWORKS
•
•
•
•
Wireless Fidelity (Wi-Fi)
Wi-Fi Direct
MiFi
Wireless Mesh Networks
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A WI-FI HOTSPOT
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WIRELESS MESH NETWORKS
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WIDE-AREA WIRELESS
NETWORKS
•
Cellular Radio
–
–
–
–
–
•
1st Generation
2nd Generation
2.5 Generation
3rd Generation (3G)
4th Generation (4G)
Wireless Broadband or WiMax
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SMART PHONE AND GPS SYSTEM
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WIRELESS BROADBAND OR
WIMAX
•
Worldwide Interoperability for Microwave Access, popularly
known as WiMAX:
– has a wireless access range of up to 50 kilometres,
compared with 100 metres for Wi-Fi
– has a data-transfer rate of up to 75 Mbps
– is a secure system, and it offers features such as voice
and video
– antennas can transmit broadband Internet connections to
antennas on homes and businesses several kilometres
away
– can provide long-distance broadband wireless access to
rural areas and other locations that are not currently being
served
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6.3 MOBILE COMPUTING AND
MOBILE COMMERCE
•
Mobile computing has two major characteristics that
differentiate it from other forms of computing:
– Mobility
– Broad reach
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MOBILE COMPUTING
•
Five value-added attributes of mobile computing:
–
–
–
–
–
Ubiquity
Convenience
Instant connectivity
Personalization
Localization of products and services
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MOBILE COMMERCE
•
The development of m-commerce is driven by the
following factors:
–
–
–
–
–
Widespread availability of mobile devices
No need for a PC
The “cell phone culture”
Declining prices
Bandwidth improvement
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MOBILE COMMERCE
APPLICATIONS
•
•
•
•
•
Location-Based Applications and Services
Financial Services
Intrabusiness Applications
Accessing Information
Telemetry
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LOCATION-BASED APPLICATIONS
•
Location-based mobile commerce is called locationbased commerce or L-commerce.
– Shopping from Wireless Devices
– Location-based Advertising
– Location-based Services
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USING GOOGLE EARTH FOR
LOCATION-BASED SERVICES
•
Click here to access industry information on Google
Earth
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MOBILE COMMERCE
APPLICATIONS
•
Financial Services include:
–
–
–
–
–
Banking
Wireless payments & micropayments
Money transfers
Wireless wallets
Bill-payment services
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ACCESSING INFORMATION
•
•
Mobile Portal
Voice Portal
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TELEMETRY
•
Examples of Telemetry Applications
– Medicine
– Automobiles www.onstar.com/ca
– Find My iPhone
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6.4 PERVASIVE COMPUTING
•
•
Pervasive computing, also called ubiquitous computing,
is a world in which virtually every object has processing
power together with wireless or wired connections to a
global network.
Two technologies provide the infrastructure for
pervasive computing:
– Radio Frequency Identification (RFID)
– Wireless Sensor Networks
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RADIO-FREQUENCY IDENTIFICATION
(RFID) TECHNOLOGY
•
•
•
A QR code is a two-dimensional code,
readable by dedicated QR readers and
camera phones.
RFID systems use tags with embedded
microchips, which contain data, and
antennas to transmit radio signals over a
short distance to RFID readers.
A typical barcode, known as the Universal
Product Code (UPC), is made up of 12
digits that are batched in various groups.
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QR CODES
•
QR codes have several advantages over barcodes:
– can store much more information than barcodes.
– data types include numbers, text, URLs, and even Japanese
characters
– size is small because they store information horizontally and
vertically
– more resistant to damage than are barcodes
– can be read from any direction or angle, so the possibility of a
failure in reading a QR code is reduced.
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RFID Tags
•
There are two basic types of RFID tags:
– Active RFID tags use internal batteries for power, and they
broadcast radio waves to a reader.
– Passive RFID tags rely entirely on readers for their power.
•
See video illustrating an example of the commercial use
of RFID
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BARCODES
•
Anatomy of a 12-digit barcode
(UPC):
– first digit identifies the item type
– next five digits identify the
manufacturer
– next five identify the product
– last digit is a check digit for error
detection
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WIRELESS SENSOR NETWORKS
•
•
Wireless sensor networks (WSNs) are networks of
interconnected, battery-powered, wireless sensors
called motes that are placed into the physical
environment.
Motes:
– collect data from many points over an extended space
– contains processing, storage, and radio-frequency sensors and
antennas
– “wakes up” or activates for a fraction of a second when it has
data to transmit
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6.5 WIRELESS SECURITY
•
There are four major threats to wireless networks:
–
–
–
–
Rogue access point
War driving
Eavesdropping
RF (Radio frequency) jamming
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CHAPTER CLOSING
•
•
•
Four main types of wireless transmission media:
microwave transmission, satellite transmission, radio
transmission, infrared
Three types of networks: short-range wireless, mediumrange wireless and wide area networks
Five major m-commerce applications: location-based
services, mobile financial applications, intrabusiness
applications, accessing information, telemetry
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CHAPTER CLOSING (CONTINUED)
•
•
Two technologies provide the infrastructure for
pervasive computing: radio-frequency identification
(RFID) and wireless sensor networks (WSNs).
Four major threats to wireless networks: rogue access
points, war driving, eavesdropping, and radio-frequency
jamming
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