M-commerce – What is it?

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M-commerce was originally coined in 1997 by Kevin Duffey at the launch of the Global Mobile Commerce Forum, to mean “the delivery of electronic commerce capabilities directly into the consumer’s hand, anywhere, via wireless technology    Think of Mobile Commerce as meaning “a retail outlet in your customer’s pocket.”   Wiki.

M-commerce (mobile commerce) is the buying and selling of goods and services through wireless handheld devices such as smartphones and tablets. As a form of e-commerce, m-commerce enables users to access online shopping platforms without needing to use a desktop computer. Examples of m-commerce include  in-app purchasing, mobile banking, virtual marketplace apps like the Amazon mobile app or a digital wallet such as Apple Pay.

The industries affected most by m-commerce include:

  • Financial services, which includes mobile banking (when customers use their handheld devices to access their accounts and pay their bills) as well as brokerage services, in which stock quotes can be displayed and trading conducted from the same handheld device.
  • Telecommunications, in which service changes, bill payment and account reviews can all be performed from the same handheld device.
  • Service and retail, as consumers are given the ability to place and pay for orders on-the-fly.
  • Information services, which include the delivery of financial news, sports figures and traffic updates to a single mobile device.

Types of M-commerce

M-commerce can be categorized by function as either mobile shopping, mobile banking or mobile payments. Mobile shopping allows for a customer to purchase a product from a mobile device, using an application such as Amazon, or over a web app. A subcategory of mobile shopping is app commerce, which is a transaction that takes place over a native app. Mobile banking includes any handheld technology that enables customers to conduct fanatical transactions. This is typically done through a secure, dedicated app provided by the banking institution. Mobile payments enable users to buy products in-person using a mobile device. Digital wallets, such as Apple Pay, allow a customer to buy a product without needing to swipe a card or pay with physical cash.

How mobile commerce works

With most M-commerce enabled platforms, the mobile device is connected to a wireless network that can be used to conduct online product purchases. In terms of mobile payment products specifically, they operate through a form of peer-to-peer (P2P) sharing. Once a mobile device is paired with a bank card’s information, the phone can be waved over a payment terminal to pay for a product. This contactless payment using a mobile device is possible due to the use of Near Field Communication (NFC).

Advantages mobile commerce

The advantages of m-commerce include:

  • Added customer retention by being more easily accessible.
  • More convenience for customers in comparing prices, reading reviews and making purchases without the need of a desktop computer.
  • Wider variety of products and services.
  • Automates a businesses’ point of customer contact and sales.

M-commerce is on the rise

M-commerce sales are predicted to make up 44.7% of total US ecommerce sales in 2019, up from 39.6% in 2018. CPCStrategy

“Mobile commerce has skyrocketed over the past few years, and we can only expect this growth – driven by ‘shoppable creative’ and frictionless mobile shopping experiences – to continue through 2019,” said Paul Fields, Senior Manager of Strategic Partnerships,  https://www.adcolony.com/


Mobile is becoming the new standard for ecommerce. These statistics on mobile commerce for 2019 paint the full picture:

  • 53% of global online traffic comes from mobile devices (Statista
  • 57% U.S. online traffic comes from mobile devices (BrightEdge)
  • 200% increase in interactions when mobile devices are used (Google)
  • 80% of users will complete sales when sites offer Q/A for mobile users (Google)
  • 72% of all digital ad spending will go to mobile this year (Marketingland)
  • 85% of users begin a sale on one device and complete it on another (Google)
  • 52% of mobile shoppers will shop elsewhere after a bad experience (Google)
  • 57% of mobile shoppers will abandon the cart if load time is 3 seconds or greater (Google)
  • 82% of shoppers browse ecommerce stores from mobile while in-store (Omnicore)
  • 62% of shoppers compare prices from mobile devices before buying (LinkedIn)
  • $1 trillion in spending offline was influenced by mobile in 2018 (Biznessapps)
  • Mobile commerce sales topped $626 billion in 2018 (SmartInsights) h

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