What is mobile commerce?
Mobile commerce, also known as m-commerce, refers to the purchase and sale of goods and services via mobile devices such as smartphones or tablets. It enables consumers to transact anywhere and anytime via a native mobile application available through a platform, such as Apple Store and Google Play Store, or a web-based application accessible through web browsers.
Mobile commerce is expected to expand globally over the next few years. The rising number of mobile users drives growth, especially as consumers increasingly opt for convenience and rely on their mobile devices for many of their daily needs.
Types of mobile commerce
There are three types of mobile commerce – mobile shopping, mobile banking and mobile payments.
Mobile shopping allows consumers to purchase goods or services online via websites or specific retail apps.
Mobile banking allows consumers to access their bank accounts and banking services, such as fund transfers and bill payments, online via a website or an app.
Mobile payments allow consumers to pay for purchases through contactless digital wallet apps such as Google Pay or PayPal.
Advantages of mobile commerce
Mobile commerce offers convenience for consumers. It is accessible and available around the clock, and transactions can be completed in just a few clicks. Mobile shopping offers a better user experience, and customers can also read product-specific information and customer reviews to determine the business’s trustworthiness and evaluate the product’s suitability before purchasing.
For businesses, mobile commerce can extend its reach to current and new customers. Businesses can personalise shopping experiences for their customers and engage and build a brand connection with them. Mobile commerce offers a unique and invaluable marketing channel through features such as push notifications or newsfeeds. Social media integration can also help their marketing campaigns attract new customers and boost sales.
Customer reviews strengthen the business’ credibility and provide an opportunity to gain customers’ trust. Incentives such as coupons, special offers and loyalty and reward programmes can be offered to encourage customers to return and make future purchases. With the right platform, businesses can drive sales both in-store and online.
Mobile commerce also allows businesses to gather consumer data that provide insightful analytics. These data enable businesses to understand their users and their shopping habits.
Leveraging mobile commerce
A practical and clear strategy is needed to ensure the successful adoption of mobile commerce. Businesses must focus on offering their customers a safe, convenient and memorable shopping experience that will entice them to return for future purchases.
The first critical step is to optimise the mobile commerce user experience by looking at the platform’s ability to provide a meaningful shopping experience for consumers. An intuitive mobile experience that meets customers’ needs is a key aspect of driving engagement.
Security is another crucial aspect that should be prioritised. Fraud detection and a trusted payment gateway are paramount in ensuring that consumer payments are safe. Businesses must be transparent about the data being collected, stored and shared. Protecting customer privacy and safeguarding sensitive information and data should also be ensured.
Adobe. “Mobile Commerce (M-Commerce).” Published 26 March 2021, https://business.adobe.com/sg/glossary/mobile-commerce.html
Alonso, Bogar. “Mobile Commerce’s Growing Importance on Sales, Shopping Trends.” Wix eCommerce. Published 26 February 2022, https://www.wix.com/blog/ecommerce/2022/02/mobile-commerce
Cleary, Sean. “8 Key Benefits of M-Commerce for Business.” Professional Academy. Accessed 5 September 2022, https://www.professionalacademy.com/blogs/8-key-benefits-of-m-commerce-for-business/
Porcelli, Marc. “Behind the Growth of Mobile Commerce.” Forbes. Published 25 June 2021, https://www.forbes.com/sites/forbestechcouncil/2021/06/25/behind-the-growth-of-mobile-commerce/