SMS reaches out to shoppers

New service could lead to take-off of m-commerce

Digital communications firm Broca has launched a new SMS application designed to give retailers and service providers a sales and marketing channel and an easier way of communicating with customers.

The Secure Advanced Messaging Service (SAMS) application features patented cyclical encryption technology that does not rely on PKI-style exchange of keys, and ensures that any confidential information on the handset cannot be found or intercepted in transmission, said Broca’s managing director, Ian Price.

Firms could use the technology to create branded forms through simple APIs and deliver them via text message to customers. Customers can fill in these forms, which could include simple drop-down menus or tick-boxes, to buy goods or services, Price added.

PIN numbers and passwords can also be registered to secure authentication before using credit cards and other sensitive data.

“The protocol is pretty broad ranging. We’re looking at it as the way to bring commerce to the handset, so people can pay for things on the move,” said Price.

Because the protocol is well known and ubiquitous it could prove popular with consumers, Price added. Potential applications could facilitate e-ticketing, e-voting and mobile banking, including two-factor authentication.

“The range of applications is wherever there’s a requirement for secure communications or data capture,” said Price. “It could also be used by enterprises to send simple secure messages. Some customers are looking to using it for market research questionnaires.”

Chris Barling, chief executive of e-commerce specialist Actinic, argued that m-commerce has not taken off because most consumers can wait until they get home to purchase items.

“As far as the UK is concerned, m-commerce has not happened. Distance purchasing is a considered thing because you have to wait for it to be d elivered anyway. The fundamental problem is that the device is too small,” Barling said.

However, Barling highlighted e-ticketing as one area where impulse buyers might use the SAMS service. The ticket could be texted back to the consumer with a unique signifier or bar code to provide entry to an event.

Ian Davis of e-commerce software specialist ATG was also cautious about the prospects of the new venture, arguing that the customer experience on mobile devices is still lacking.

"However there are a few areas where m-commerce could be successful in
the current market," he added. "Firstly, with purchases tied to the mobile device
itself, such as music downloads, wallpapers and ringtones. The other
sector is time-based services such as eBay auctioning, where time is of
the essence."