Buying and selling goods and services from handheld devices such as tablets and smartphones is mobile commerce or m-commerce.
What is m-commerce?
M-commerce is an extension of e-commerce where users can access online shopping platforms on their handheld devices without using a desktop computer. Examples of m-commerce include mobile banking, purchasing in-apps, transacting on Amazon mobile app, or using digital wallets like Android Pay, Samsung Pay, or Apple Pay. Smartphone usage has also ensured that content delivery has become secure, fast, and scalable in the past few years.
Some of the key statistics that highlight the growth of mobile commerce:
- Mobil e-commerce sales account for 67.2 % of total e-commerce sales- expected to grow to 72.9% by the 2021 end.
- 67.03 % of the global population owned a mobile in 2021
- 79% of smartphone users have purchased online from their mobile device
- More than 1 billion smartphone users do mobile banking
- Mobile commerce sales to touch $3.56 trillion by 2021 end
The industries that will get impacted by mobile commerce are:
- Financial service – This includes mobile banking, where customers use their smartphones to access and transact on their account, and stock market trading, where sales and purchases can be made the brokerage services apps.
- Telecommunications – Bill payments, service charges, and accounts reviews can be made from handheld devices.
- Retail Services – Consumers place orders online on their mobile devices while on the move.
Types of mobile commerce
M-Commerce is categorized into mobile shopping, mobile payments, or mobile banking.
Mobile shopping – allows consumers to purchase products on mobile e-commerce websites, usually in the form of native apps.
- Mobile Banking allows users to conduct financial transactions by accessing their bank accounts or brokerage service accounts. One can also check their account details and other information.
- Mobile payment allows users to products using the mobile device in apps purchase. Also, users can use digital wallets such as Google Pay to pay for a purchase without using cash or swipe debit or credit cards.
How mobile commerce operates
Most M-Commerce platforms use the wireless network to conduct online transactions. Developers of M-commerce applications work and implement KPIs such as keeping track of the mobile traffic, conversions, average order value, average page loading time, mobile shopping cart conversions, SMS subscriptions, user-friendly navigation, etc.
M-Commerce operates on a P2P or peer-to-peer sharing model for payments on mobile transactions. Once a mobile device gets paired with the bank’s account or card information, the phone is allowed over the payment terminal to make a payment. This form of contactless payment is possible through NFC or Near Field Communication.
Benefits and drawbacks of mobile commerce
Benefits
- Convenience for consumers to compare prices, read reviews, and make instant purchase decisions without the need for a desktop and while on the move
- Higher customer retention due to ease of accessibility
Drawbacks
- Poor customer experience on mobile apps can deter online purchases.
- Unavailability of support for all types of digital wallets.
Conclusion
Mobile commerce applications and services help customers conduct transactions seamlessly. It also allows businesses to research and finds data on increased revenue and customer growth.
