Suggestion for Rural Computer

and M-Commerce

By: Naineet C. Patel

Ranjeet Kumar Vimal
Gautam Garde
CyberBooth
 Basic Idea :
 selling information as a commodity

 Provide low cost computer to shopkeepers

 feasible internet connection
 access to govt. services, market services, etc
 proper training with the help of govt or NGO's

 Similar to a Phone Booth

How its different
 CyberCafe
 Doesn't need to have the customer directly
interact with computer
 Just need of one computer

 Kiosk
 Access to internet so large spectrum of services
and information
 Later more service can be added like printing,
scanning, webcam, etc
Pros & Cons
 Pros
 Customer doesn't need to be literate or familiar
with computer
 Since shopkeeper will gain money for service so
will themselves help in creating awarness
 Can be easily setup
 Cons
 Security issue
 Privacy issue
Our ideas on Services
 Basic information like market prices of commodity,
forum access etc can be provided
 Weekly Chat sessions with experts can be provided
for eg veterinarian, Agriculture Expert, etc
 e-Post
 Banking services
 Mobile Recharge
 Railway Booking
 etc

 Note: for customers who don't have online banking

account, the shopkeeper can use his/her account
and directly take cash for the customer.
Strengths
 Can create jobs in rural areas

 Useful to people who use internet once in a while,

cant afford to have a computer or monthly internet
service.
 Since customers just need to interact with
shopkeeper he will feel more confident and and less
alienated
 Experts help will be easily available and readily
available
 Helps to save & create money eg no need to travel
far away to know market prices, recharge,
booking,etc
 Slowly and steadily can creates awarness of IT in
rural public
 M-Commerce

Case study (work done in

Philippines)
• Features of m-Commerce
– Provision for cash deposits and withdrawals.
– Ability for third parties to make deposits into a
user account.
– Ability to make retail purchase.
– Over-the-air prepaid top-ups using the cash
already in the account.
– The ability to transfer cash between users
account.
– Provision for bill payments.
• Issues included
– Who would be the parties involved.
– What responsibilities would each party
undertake.
– What services are to be offered.
– Is a debit card appropriate.
– What charges will apply.
– Estimating the likely transaction volumes.
– Deciding on the system vendors.
– Identifying management and operational skill
sets required.
– Back office support services.
– Effective customer care service available
– Preparing a realistic business case and project
plan.
Opportunities and Challenges

• Customer perspective
• Institutional perspective
Customer Perspective

• Features:
– Needs meet by m-Commerce solutions
• Accessibility:
– Distribution of transaction points
• Affordability:
– Transaction costs need to be low
• Ease of use:
– Easy to use, fast & user friendly
 Institutional Perspective:
• Fees and Charges:
– Need for an appropriate revenue strategy
• Efficiency Gains:
– Can the institution substantially increase
business transactions at lower cost?
• Controlling Development Costs:
– Need to ensure positive returns on investment
 Institutional Perspective:
• Partnerships & Distribution Network:
– Multiple business partnerships are essential
– Need a wide enough network focused on
accessibility and ease of use
• Multiple Business Cases:
– Each partner must benefit through reduced
costs,
– increased efficiency, or direct income
 Agencies participated
• G-cash from Globe
• Smart Money

We will discuss about G-cash

 Rural Banks in the Philippines
• Philippine rural banking network coverage:
760 rural banks with over 2,000 branches
• US$2 billion in assets
• Over 5 million deposit accounts
• Over 1 million borrowers
 Globe Telecom
• One of the leading mobile phone operators in
the Philippines
• Over 13.5 million subscribers
• Over US$1B annual revenue
• Cell phone industry processes approx. 200
million messages per day in the Philippines
• Alliance partners include 7 mobile operators in
Asia with close to 70 million subscribers
• Alliance partnership involves sharing of
technology, innovation, and best practices
including marketing programs.
 What is G-CASH?

oCash-less and card-less micro payment over a mobile phone.

oThe country’s first and only mobile wallet service
 Purchase goods and services
Micro-finance applications
Tax and bill payments
Send and receive money person to person or P2P
Domestic and international remittances
 Subscriber Registration
Send SMS: REG M-
PIN/Mother’s Maiden REG 1234 /
Name/First Aurora Reyes/
Juan/ Dela
Name/Last Cruz/ 5 Santol
Name/Addres St.,
Project 4, QC/
024261001

Subscriber 2882 SMS

facility
Thank you Juan
Dela Cruz for
registering to G-
Cash on
08/12/04 at 10:30 Confirms receipt of SMS with
a.m. You may
now use G-Cash. welcome text and corresponding
For more info, trace number
reply to this msg
with INFO. Ref
 Merchant:
a)Verifies identity
of customer • Recipient receives SMS
b)Processes advisory of G-Cash
Customer Customer shows transaction transfer
goes to Outlet valid Text-a- • Collects payment • Outlet’s service unit
to exchange Payment ID and a)Sends G-Cash receives SMS
cash for GCash gives cash-in from outlet’s acknowledgment with
amount and service unit to confirmation number
service fee recipient’s mobile
no. via P2P
 P2P Transfer

Enter amount and PIN.

Send to 2882+10 digit
mobile no. of recipient
Fee: only P1.00/send

Both the sender and recipient receive a

SMS advisory with corresponding trace
number
 Issues To Be Considered In
Establishing an m-Commerce
• Issues for a Network Operator.
• Banking Issues.
• Market Issues.
• Competition Issues.
• Regulatory and Security Issues
• Competency.
• Transaction Management Issues.
• Company Infrastructure
Issues for network operator:

• Which model to adopt

– Access Model
– Hybrid Model
• Access Model
– Search for banking partner
• Hybrid
– How far should model be developed
• Banking issues:
– How to use expanded market
– Help in reducing fraud,money laundering
– provide solutions for banking regulations
• Market Issues
– attracting customers
• minimum p2p airtime credit allowed was 4 cents
• minimum prepaid top-up was 47 cents
– support for “sachet” purchasing
• Competition Issues
• Regulatory and security Issues
– Liquidity,security,fraud detection
• TRANSACTION MANAGEMENT ISSUES:
– large no of low value transaction
– increase in no of sms handled by existing
networks
– third party transactions
– need to develop new transaction engine
• Robust company structure
 Conclusion
• Aim of this presentetion was to identify key aspects
of currently availble m-Commerce systems.
• for devloping economies m-Commerce is benifitial in-
perticular for
– Capturing unofficial cash float in the community
– eliminating need for people to carry cash in
significant amount
– reducing the exposure to robbery
– enabling the advancement of micro-loans to the
commnity
– facilitating loan repayments
– unabling payments of utility bills
• By industrial perspective
– Banks
• increase in customer reach
• increased cash float available to the bank
– Networks
• increase in text messaging revenues
• greater appeal to the market
– Retailers
• added business opportunities
• competitive advantage
– micro-finance institutions
• ability to advance funds to remote areas
• regular convenient repayments from users
m-commerce was successful in Philippines
Conditions of rural areas of Philippines and
that India are quit same .There is major
section people who use mobile but have to
go 20-30 km to deposit/withdraw money
in/from back .m-commerce can be
experimented in India if some network
operator comes forward to help
Thanks