Mobile commerce, also known as m-commerce, involves using wireless handheld devices like cell phones and tablets to conduct commercial transactions online. This includes the purchase and sale of products, online banking, and paying bills.
Key Takeaways
- Mobile commerce refers to business or purchases conducted over mobile devices like cell phones or tablets.
- M-commerce allows users to transact anywhere, provided there’s a wireless Internet connection available.
- Security enhancements have catalyzed rapid growth in mobile commerce.
- Technology giants like Apple and Google have introduced their own mobile commerce services.
Understanding Mobile Commerce
Mobile commerce is a large subset of electronic commerce, meaning firms or individuals conduct business over the Internet. As of 2023, nearly 97% of Americans own a cell phone and 85% of them own smartphones. This is a significant increase from 35% in 2011.
Many products and services can be transacted via m-commerce, including banking, investing, and the purchase of books, plane tickets, and digital music. The rapid growth of mobile commerce is driven by several factors, including increased wireless handheld device computing power, the proliferation of m-commerce applications, and the resolution of security issues.
Comparing M-Commerce and E-Commerce
Electronic commerce (e-commerce) refers to buying and selling goods and services over the Internet. E-commerce transactions can be conducted via desktop computers, laptops, smartphones, or tablets, but are typically associated with a computer where a user must find a location with an Internet connection.
Conversely, m-commerce specifically refers to transactions done via smartphones or mobile devices. M-commerce users can transact anywhere provided there’s a wireless Internet provider available.
M-commerce transactions tend to be accomplished with a few clicks, whereas e-commerce might involve more time exploring a company’s website.
Benefits of Mobile Commerce
The range of devices capable of mobile commerce has grown significantly. Digital wallets like Apple Pay and Google Pay allow customers to make in-store purchases effortlessly without swiping cards. Social media platforms such as Facebook, X (formerly Twitter), Pinterest, and Instagram have launched ‘buy buttons’ on their mobile platforms, enabling users to make purchases directly from these sites.
M-commerce apps enable location tracking via GPS to help customers find items in stores and provide personalized shopping experiences, connecting retailers with their clients.
Digital commerce transactions are likely to continue climbing as content delivery over wireless devices becomes more streamlined, secure, and scalable.
Tips to Enhance Mobile Commerce
Quick-loading web pages are likely to win more sales because consumers can be impatient and demand instant gratification. Mobile checkouts must allow buyers to easily enter payment information, preferably with mobile wallets, eliminating the need for manual entry and reducing human error for a smoother checkout experience.
The Rise of Mobile Commerce Video and Marketing
Mobile applications that use video to demonstrate a product’s key features are likely to generate more revenue. For example, an online foreign exchange broker who sends video links illustrating its mobile trading application is expected to win more clients.
Mobile Web and Mobile Applications
Consumers often use Google or social media promotions to initiate online shopping searches. Mobile browsers tend to drive more transactions than mobile applications for this reason. Pairing the use of mobile applications with mobile websites enhances the overall shopping experience.
Common Uses for M-Commerce
M-commerce has streamlined shopping, banking, and bill payment processes. Numerous consumers can easily manage their financial lives on their phones. Digital wallets are also a common convenience.
Impact of M-Commerce on Sales
Mobile commerce sales in the United States were an estimated $431 billion in 2022, according to market research company Statista.
Addressing Risks in M-Commerce
While mobile commerce has many advantages, caution is necessary. Mobile devices are easy to misplace. Ensuring security by setting up multi-factor authentication, including biometrics such as fingerprints and retina scans, can help protect personal information.
Conclusion
M-commerce provides numerous benefits to both businesses and consumers. Due to widespread mobile device ownership, businesses can reach customers more easily. Consumers enjoy convenient access to coupons, discounts, and banking tasks. Mobile commerce is advantageous for both parties and its benefits will continue to grow as new technology advances.
Related Terms: electronic commerce, digital wallets, mobile apps.
References
- Zippia. [“25+ Incredible US Smartphone Industry Statistics [“2023"]: How Many Americans Have Smartphoness”](https://www.zippia.com/advice/us-smartphone-industry-statistics/).
- Meta. “Testing a New Way for People to Discover and Buy Products on Facebook”.
- X. “Testing a Way for You to Make Purchases on X”.
- Pinterest. “Coming Soon: Buyable Pins!”
- Instagram. “Introducing Checkout on Instagram”.
- Optimizely. “B2C Ecommerce Benchmark 2019”, Pages 4-7.
- Statista. “Mobile Commerce in the United States - Statistics & Facts”.
