In the recent past it has become common to receive alerts based on Credit card transactions, acknowledgement of payments, Due date reminders, etc. from a host of institutions like Banks, Telecom companies, financing institutions etc. Electronic commerce applications involve using a mobile phone for financial transaction purposes- this usually means making a payment for goods or transferring funds electronically. Transferring money between accounts and paying for purchases are electronic commerce applications. The convenience of paying for purchases using SMS must be weighed against the related issues of security, integration with the retail and banking hardware and systems, and money transfer issues. However, this area of electronic commerce applications is expected to contribute to growing SMS traffic in the future, as mobile phone penetration delivers a critical mass of potential customers for such services.