Understanding M-commerce: What is it and Why Should You Care

Mobile commerce is more than a fad; it is a phenomenon that is here to stay!

If you haven’t yet jumped on the mobile commerce bandwagon, now is the moment. As a business owner, you must meet your customers wherever they are. And where better to engage your consumers than on their mobile devices? Hence, let’s dig into what is m-commerce?

M-commerce is a type of commerce that deals with digital transactions made through a smartphone. Two persons do not need physical contact to send or receive money. It refers to purchasing and selling products and services using wireless portable devices such as smartphones and tablets.

What is M-Commerce?

Mobile commerce is a growing subset of electronic commerce, a business model in which organizations or people perform transactions through mobile phones. According to the research, about 97% of Americans own a mobile phone, and 85% own a smartphone, up from 35% in 2011.

M-commerce allows purchasing a wide range of items and services, including banking, investing, buying books, plane tickets, and digital music.

E-Commerce vs M-Commerce

E-commerce is selling and purchasing products and services through the internet. This type of commerce is usually performed on a desktop computer, laptop, smartphone, or tablet. But, it is often connected to a computer, and a user has to find a place with an internet connection.

In contrast, m-commerce refers to transactions conducted via a smartphone or mobile device. M-commerce allows consumers to make transactions from anywhere with a wireless internet connection.

Mobile commerce is more than an expansion of online commerce 

It has sparked the development of new industries and services, as well as helped the growth of current ones, such as: money transfers through mobile phones, electronic boarding passes and tickets, purchase and distribution of digital material, In-app payments and contactless payments and much more. 

Different types of Mobile Commerce

Users may browse items and services on their mobile phones with this sort of M-commerce. Mobile shopping uses apps designed for mobile websites and social media platforms. It allows users to see various items, compare them, and place orders.

Mobile Banking

Mobile banking enables mobile users to do bank transactions using their phones. This type reduces the need to use a computer or visit a bank. The customers accessing mobile banking may differ from one financial service provider to another.

Mobile Payments

Mobile payments allow customers to utilize their mobile wallets to pay for products or services. This minimizes the need for cash payments or card swipes. This type of m-commerce enables customers to transfer money using a card linked to their smartphone.

Mobile Person-to-Person

This type of m-commerce entails transferring and receiving money from one person to another. A user can pay money straight to another user’s mobile number or bank account via mobile person-to-person.

Benefits of M-Commerce

The number of mobile commerce-enabled gadgets is growing. Customers may use digital wallets such as Apple Pay and Google Pay to make in-store transactions without swiping cards.


One of the major benefits of M-Commerce is the ease it delivers to customers. Consumers may buy whenever and wherever they choose, giving them more control and a better shopping experience.They can request companies to deliver their items instead of going to storefronts. Vendors may interact with customers virtually even when physical stores are closed. 

Better Customer Experience

Customers have more options for paying for products and services. Thanks to mobile wallets and the integration of credit cards into mobile applications. Having a variety of approved payment alternatives can make shopping more convenient.

Customers can receive coupons and discounts from retailers. M-commerce applications use GPS location monitoring to assist customers in finding items in their shops.

Disadvantages of M-commerce

M-commerce Optimization

Although m-commerce is growing in popularity, we must maintain sight of the importance of the desktop. In reality, the desktop continues to have several benefits over mobile.

Difference in screen size rather than mobility is likely to be the reason for this. Tablets had a higher conversion rate while other devices with smaller screens (i.e., smartwatches) had a rate of only 0.1%.

Payment Options

While having various payment options might be helpful, not all payment systems and mobile wallets are available in all locations. Clients in various areas often prefer specific payment alternatives over others, making global business management for online shops more difficult.

Offering more payment alternatives may appear to simplify the mobile experience. 

Security Issues

Many smartphone users don’t make online purchases on their mobile devices due to security issues. Whereas 14% said, they feared sharing their data with third parties.

How Brands Can Use M-commerce?

Regardless of how popular smartphone shopping is, keep in mind that mobile transactions are not made by chance. Brands must take special efforts to avoid freezing out on-the-go customers. Consider some practical improvements and upgrades for a better mobile shopping experience.

Improve Mobile User Experience And Site Page Loading

With more consumers accessing websites via mobile devices, brands should make creating a mobile-friendly website a top priority. A trip planner, restaurant locator, menu, nutrition information, and integration with Twitter, Facebook, and YouTube. 

Makes Checkout Process Easier

You may reinvest more of those wasted revenues into your business by streamlining your checkout process. With a simple, intuitive checkout, you’ll also increase consumer loyalty and promote repeat purchases.

Rank Social Media Sales

Ranking social media sales is a method that connects and engages directly with your target sales prospects. It’s a popular method for developing deep ties with potential clients.

M-commerce: The Future of Shopping?

This may be opinionated; M-commerce is the future of shopping. 

Brick-and-mortar businesses suited the general requirements well. Still, as we all know, changing times necessitates different solutions, and M-commerce has proven to be the king of transactions this decade.

Mobile commerce is more than a fad; it is a phenomenon that is here to stay. The sooner you start optimizing your storefront, the better. Mobile shopping will likely become less of a choice for eCommerce retailers. Smartphones have become more critical to connecting, getting information, and buying online.

Featured Image: DreamHost

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