Here’s Everything You Need To Know About Mobile Commerce

What Is Mobile Commerce?

Mobile commerce (m-commerce) refers to any commercial transactions that take place via apps or mobile sites. It is a sub-category of ecommerce or the mobile version of the same. 

According to Mordor Intelligence, the mobile commerce market size is estimated at $1.45 Tn in 2024, and is expected to reach $1.99 Tn by 2029, growing at a CAGR of 6.54%. As more people gain access to smartphones and tablets and as mobile purchases get more convenient, this vertical will continue to soar. 

What Is The Difference Between M-Commerce And Ecommerce?

Here are the differences between m-commerce and ecommerce:

What Are Some Of The Key M-Commerce Areas?

• Browsing And Buying: Similar to ecommerce flow on a laptop, m-commerce revolves around users clicking around mobile websites, browsing apps and making purchases. With Snapchat, TikTok and Instagram offering in-app options, this can also happen as a ‘social commerce’ purchase. 
• Digital Content (Purchasing And Renting): Think Netflix and Spotify and you can gauge how popular subscription apps have become on the mobile. Users can access an entire library of content after paying the subscription fees. 
• Convenience Purchases: M-commerce is no longer related to shopping per se and many online purchases are not mobile-related. These purchases include booking taxis and ordering food or grocery deliveries.
• Mobile App Payments And Wallet Payments: Digital wallets are gradually growing in use as there are various ways to make mobile purchases. A user’s digital wallet can be loaded and a purchase can be made through a thumbprint or a single click instead of inputting credit card details to each app. 

What Are The Benefits Of M-Commerce?

• Better User Experience: When customers are purchasing through smartphones or tablets, user experience is one of the most vital components. Customers also enjoy a unique and relevant user experience through personalisation. For instance, customers can initiate a conversation over WhatsApp if they wish to buy a product from a mobile website. 
• Provides Access To User Data: The user information starts getting stored and the brand gets access whenever a user logs in to a brand’s mobile application. If the brand wants to send personalised messages to customers or if there is a campaign involved, it can easily access the data and send the latest collections and offers to magnetise them. 
• Provides A Seamless Checkout Process: It takes a bit longer to complete the transaction when a customer purchases through the traditional way. A brand is bound to attract more customers with the enhanced purchasing experience and it may even retain the existing ones. 
• Builds A Global Customer Base: As customers can purchase at their convenience, m-commerce can build a global customer base. It also creates another marketing channel for the brand.
• Targets More Customers: A mobile app can offer all the functionality that a traditional website can. Sales can be boosted through push notifications featuring discounts. 

What Are The Disadvantages Of M-Commerce?

1. Security Issues: Many customers face issues in sharing personal information with a brand. The issue can especially be seen while entering bank account details during a purchase. 
2. Shipping Costs: Shipping costs may add up on each transaction done during an m-commerce purchase.  
3. Connectivity Issues: As many as 1.05 Bn users accessed the internet via their mobile phone in India as of 2023. However, rural areas still face a lack of internet connection. Due to the lack of mobile connectivity, brands may miss out on selling opportunities.