Over 60% of US adults say that mobile shopping is necessary for convenience in online shopping. It’s why experts believe that M-commerce sales will exceed $710 billion in 2025.
Of course, there’s nothing quite like the in-store experience, but being able to buy a product with the tap of a button on a screen is nothing short of amazing.
As more companies adopt mobile commerce, the trend will only continue to grow.
Will you be one of these brands?
What Is Mobile Commerce?
Mobile commerce, also known as M-commerce, is the process of completing a transaction online via a mobile device.
You may think of mobile commerce as a convenient way to make a purchase. While that’s true, there’s more to M-commerce than meets the eye.
It also entails other things like:
- Shoppable media and social commerce: Shoppable media integrates product listings and purchase options directly into social media platforms or other digital content. Social commerce allows users to browse, buy, and share products within their social networks. That way, they can complete transactions without leaving the platform.
- In-store mobile app usage: 72% of shoppers use their mobile devices to compare product prices. In-store mobile apps may offer features like in-store product scanning with QR codes, personalized offers or discounts, mobile payments, and loyalty program integrations.
- Mobile payments/transactions: Shoppers can complete transactions with their mobile device using mobile wallets like Apple Pay, Google Pay, or Samsung Pay. This eliminates the need to pull out a credit or debit card to make a purchase.
- Connective TV commerce: This involves using mobile apps to interact with and make purchases from TV content or ads. Using technologies like QR codes, voice commands, or synchronized apps, viewers can engage with TV apps or programming, access additional product information, and complete purchases directly from their mobile devices while watching TV.
- In-app mobile commerce: This allows customers to make purchases within an app. This might include games, retail, travel, or food delivery apps.
- Mobile ticketing: Consumers can purchase, store, and present tickets for events, transportation, and entertainment activities using their mobile devices.
- Marketplace apps: Through marketplace apps, buyers and sellers can connect, list products or services, and complete transactions.
Now that customers can do their shopping and complete transactions on the go with their mobile devices, they’re seamlessly transitioning between online and offline channels to interact with businesses. M-commerce facilitates this seamless switching of channels by providing convenient access to products and services anytime, anywhere.
From browsing and research to purchase and post-sales support, the entire customer journey can now unfold effortlessly on a smartphone or tablet.
If you’re considering embracing M-commerce, optimize your mobile platforms for a seamless user experience, implement mobile-friendly payment options, and leverage data-driven insights to personalize the customer journey.
By aligning your strategies with the preferences and behaviors of mobile consumers, you can effectively engage with your audience throughout every stage of the digital customer journey.
This ultimately drives growth and success in the mobile-driven era.
M-Commerce vs. E-Commerce
So, what’s the difference between M-commerce and E-commerce?
They both involve completing transactions online. But they’re different in several ways.
Firstly, M-commerce is a type of E-commerce. But not all E-commerce is M-commerce. For example, a consumer uses their smartphone to purchase a cordless stick vacuum on the TikTok shop, without having to leave the TikTok app.
Screenshot provided by the author
This is an M-commerce transaction.
Let’s say this same customer was out of K-cups for their Keurig. But the specific flavor they want is sold out at all their nearby retail stores, like Walmart and Target.
Screenshot provided by the author
So, the customer doesn’t use these mobile apps to make the purchase. Instead, the customer goes straight to the Starbucks Coffee at Home site to buy what they need.
Screenshot provided by the author
Even if the customer accessed the website via their mobile device, this is still an e-commerce transaction. Why? Because the user made the purchase through a traditional online retail platform on a web browser.
Other factors that differentiate M-commerce from E-commerce include:
Mobility: With M-commerce, consumers can make purchases on the go from virtually anywhere. Traditional E-commerce transactions take place via a laptop or desktop computer, so there’s less mobility.
💡 Example: A customer using their smartphone to order food delivery while on a train.
Location tracking: M-commerce leverages location-based services on mobile devices to offer personalized shopping experiences. For example, retailers can send relevant deals or offers based on a user’s location. E-commerce platforms are less reliant on location-based services.
💡 Example: A retail mobile app uses geofencing to send push notifications about nearby store promotions.
Security: When customers use their mobile devices to conduct transactions, they benefit from higher security measures like biometric authentication (i.e., fingerprint, face recognition, passcodes, passkeys, and multi-factor authentication).
💡 Example: Mobile banking apps use biometric authentication to verify users’ identities.
Reachability: M-commerce taps into the widespread adoption of mobile devices. So, it extends the reach of online business. This allows brands to reach consumers with limited connectivity or those who prefer to shop using their mobile devices.
💡 Example: A retailer launches a mobile app to reach shoppers who prefer to complete transactions on the go.
Convenience: Customers can shop, pay, and track orders seamlessly from their mobile devices. Features like one-click checkout and saved payment methods make shopping on mobile more convenient.
💡 Example: A ride-sharing app allows users to book rides with just a few taps.
Benefits of Mobile Commerce
Mobile commerce offers shoppers a wide range of advantages.
⚡ Convenience
Shoppers can access information and make purchases anytime, anywhere. They can research products, compare prices, and complete purchases on the go.
⚡ Improved customer experience
Shoppers benefit from personalized experiences via location targeting, secure and convenient mobile payment options, product recommendations, one-click checkout, and more.
⚡ More payment options
Mobile wallets like Apple Pay, Google Pay, and Samsung Pay allow buyers to securely store their payment information and make purchases on their devices.
Consumers can also make mobile transfers using mobile banking apps and peer-to-peer platforms like CashApp, PayPal, and Venmo.
These mobile banking apps offer users the ability to manage their finances from anywhere, anytime. A key feature of such apps is the option to open and manage checking accounts, which has significant implications for personal finance management.
For instance, SoFi’s mobile app not only enables the management of joint checking accounts but also allows account holders to earn interest, making financial collaboration convenient and rewarding.
This integration of mobile banking into daily commerce aligns convenience with financial empowerment, exemplifying the growing influence of digital solutions in personal finance management.
⚡ Location-based services
Proximity marketing campaigns deliver targeted promotions and offers to users based on their physical proximity to stores or specific locations.
Challenges of Mobile Commerce (and How to Address Them)
Every good thing comes with a downside. Mobile commerce is no different. Let’s explore some of its challenges and how to get ahead of them.
⚠️ Security and privacy concerns
Users are concerned about the privacy of their personal information when they use their mobile devices to complete transactions. They fear that someone may lose their device. They often worry if someone steals their device or someone hacks their Wi-Fi network, that their data will be compromised.
To protect consumers, you can use strong authentication (2FA or MFA), carefully manage app permissions, and make regular updates to apps with security patches.
Take it one step further and consider insider threat management software to protect your clients’ data (credit card info, for example) from internal threats and potential data leaks.
⚠️ Speed and performance
Mobile devices can only handle so much bandwidth, storage, and memory. So, speed is often a concern.
High-resolution images, rich media content, and weak GPS signals can slow things down. To speed up your page load time, you can:
- Leverage a content delivery network (CDN)
- Use a mobile-first strategy
- Optimize all image
- Prioritize caching
⚠️ App Store regulations
The iOS App Store and Android Google Play Store have strict guidelines for approving apps on their platforms. They must make sure apps meet quality standards and don’t pose risks to users.
To make sure your app is compliant, regularly check for policy changes, address user feedback, and use strong security measures to protect user data.
Trends in Mobile Commerce
Last but not least, let’s explore some of the upcoming trends that will continue to revolutionize mobile commerce.
📈 One-click checkout
One-click checkout is an awesome feature that lets shoppers purchase products with just a tap of a button.
This can be done through a mobile wallet (i.e., Apply Pay) or Shopify’s Shop Pay.
Screenshot provided by the author
With these capabilities, users can securely store their payment and shipping information for future purchases.
Consider implementing a dynamic checkout button to reduce the number of steps to complete a purchase, deliver a personalized checkout experience, and increase conversion rates.
📈 Social commerce
Social commerce integrates shopping functionality directly into the social media experience. Visual special media platforms like Facebook, Instagram, TikTok, and Pinterest are popular apps for facilitating social commerce transactions through engaging visual content.
These platforms offer features like:
- Customizable storefronts
- Influencer partnerships
- Shoppable posts
These allow brands to showcase products and encourage purchases so that customers don’t have to leave the app.
Notice how Jordan includes a shoppable link in an Instagram Stories ad. When a potential customer clicks the link, they’ll end up on the Jordan site. But they do so all without leaving the Instagram app.
Screenshot provided by the author
📈 Mobile chatbots
Mobile chatbots offer real-time support and personalized shopping experiences via mobile devices. Retailers often use chatbots to assist customers with product recommendations, order tracking, and resolving inquiries.
The Bambine Tree, a UK-based educational toy and games brand, uses a chatbot within Facebook Messenger to send special offers to its customers.
Screenshot provided by the author
Final Thoughts
Mobile is the future. And we’re pretty much already living it. People use their phones or tablets to browse the web, discover new products, make purchases, and complete transactions.
So, why not capitalize on this by optimizing the mobile shopping experience? Features like mobile payments, chatbots, and one-click checkout all have one thing in common: convenience.
Keep these trends in mind and follow our tips to navigate your M-commerce journey.