What is Mobile Commerce

Complete Guide to Mobile Commerce

Do you know, the concept of Mobile Commerce (M-commerce) was launched in 1997 when the first two mobile phones enabled Coca Cola vending machines were launched in Helsinki, Finland? The machine accepted payments through SMS text messages received on phones.   

The first mobile phone-based banking service was launched in 1997 by Merita Bank of Finland. Mobile Commerce services expanded in 2000 with the introduction of train ticketing via mobile phones in Austria, the launch of mobile parking payments in Norway, mobile purchases of airline tickets, and more. 

Over the two decades, the concept of M-commerce has grown a big- time. M-commerce is a new and convenient process of selling and buying products online remotely by accessing services through mobile devices. 

According to a Statista report, mobile accounts for approximately half of the web traffic worldwide. In the fourth quarter of 2021, mobile devices generated 54.4 percent of global website traffic.

What is Mobile Commerce? 

Mobile Commerce is an advanced version of E-commerce. All purchases, transactions, and services accessed through a mobile device come under Mobile Commerce. For businesses, Mobile Commerce plays a significant role.  It is a way of conducting business over mobile devices like cell phones and tablets.

Global eCommerce Mobile Payment Trends

The trend of mobile commerce is whopping as more and more people use mobile devices for their day-to-day activities like online shopping, banking, entertainment, and more.

According to a report by J.P. Morgan mobile commerce accounts for over a third (36 percent) of all e-commerce transactions in India.

Technology has made it possible for them to integrate several features like real-time data access, on-time insights of data, fast services, instant communication, and more, which is possible only through handheld devices.

M-commerce VS E-commerce

M-commerce and E-commerce are two forms of online business that have the same goals i.e to make selling and buying products online convenient and easy. Although the end goal of both the concepts may be the same, these are two different concepts.

Understand the difference between M-commerce and E-commerce here:

M-commerce VS E-commerce

Benefits of M-commerce

M-commerce has made the process of selling and purchasing products quick and hassle-free. The platform has several benefits as it offers exceptional market value for businesses. Know details about the benefits of M-commerce here:

Easy Access 

The aim of introducing M-commerce is to help users access services through mobile devices.  This helps them to perform transactions anywhere and any time.  


It is easy to carry a mobile device anywhere, access stored data, and get the maximum benefit from its features. The user can access services as per the convenience. 

Real-time Data Fetch 

Location-specific applications help users track real-time data and receive relevant information on time. Services like cab booking, gaming, tracking, etc., are possible using location-specific Apps. 

Customer Reach 

Most potential customers for any business use mobile devices. Hence, businesses have an opportunity to target a large user base using M-commerce. As a consequence, companies can generate better revenue and enhance their sales. 

Better Communication 

M-commerce allows businesses to send notifications and alerts on time to promote their sales and services. Using personalized information, they can help customers complete purchases, hence increasing their sales. 

Secure Customer Data Fetch

Using M-commerce, businesses can store records of customers like their purchasing preferences, choices, demographics information, shopping history, etc. This information can help sellers understand their buying patterns which can be further used in marketing. 

Enhanced Customer Experience

The enhanced customer experience is one of the most important benefits of an M-commerce platform. By using a mobile app, customers can easily navigate through products and complete their purchase or access services in just a few clicks. An interactive and well-designed mobile app is convenient and improves the overall buying experience of customers. 

Notifications and alerts help users complete their purchase which might be pending from days. With better customer experience comes higher conversion rates that help businesses enhance their services. 

How Does Mobile Commerce Work?

The majority of M-commerce transactions and purchases happen through mobile apps as they are easy and convenient to use. The user can perform various activities by using the application specifically designed to meet customer requirements. 

To use the Mobile Commerce services, the user must have access to a good internet connection and handheld devices. 

M-commerce involves the applications of mobile devices, middleware, and wireless networks. Technology such as Wireless Application Protocol (WAP) sets performance standards through wireless devices.

M-commerce services are offered by businesses to ensure that their customers are able to access their services conveniently and efficiently. Here are some other important factors that businesses should consider when implementing mobile commerce for businesses:

  • Mobile-friendly website 
  • User-friendly GUI 
  • Easy checkout and fast payment 

Also take a look at the must-have features of M-commerce app for businesses to implement:

  • Location tracking
  • Push notifications
  • Social media integration
  • Product search
  • Multiple payment option
  • Optimized design and content 
  • Customer support 

Those who offer M-commerce services should keep track of the following to optimize their services: 

  • Traffic through mobile devices or mobile app
  • Loading time
  • Conversion rate
  • Bounce rate
  • Average order value

Applications of M-Commerce 

Today, M-commerce holds usability in almost every industry depending on the business requirements. It has become a popular way of doing business, and its usage is likely to expand in years.

Find out how Mobile Commerce is transforming the practice of offering services here: 

Mobile Banking

Financial transactions are one of the most significant utilities of M-commerce. The convenience of accessing bank services any time and anywhere is a notable advantage of mobile banking. 

According to a Statista report, the number of mobile banking payments across India in 2019 accounted for approximately 6.2 billion. The Indian digital payments market was estimated to reach the one trillion U.S. dollar mark by 2023.

Banks offer impressive and secure apps with multiple features. It helps their customers access banking services using mobile devices at their convenience.

Mobile Shopping

Using an app for online shopping has become an integral part of people’s lives. Shopping apps are like virtual stores that allow people to shop anywhere and per their requirements. 

A mobile-friendly and optimized online store is essential for growing a business today as many online shoppers, mainly younger generations, use mobile devices for shopping. Any store owner who has a well-designed mobile app has a significant competitive advantage in the market. 

Besides intensifying customer satisfaction by offering convenient and user-friendly mobile apps for shopping, brands and businesses have several other benefits. These opportunities 

  • Widen the market reach 
  • Amplify gratification of customers
  • Enhance competitiveness in market
  • Boost brand awareness 

Mobile Payment 

Online transactions through mobile payment have made the life of people easier and faster. The introduction of mobile payment applications has made it possible to go cashless and conduct transactions using mobile devices without waiting in long queues at the banks. 

Looking at the growing usage of portable devices, banks and financial institutions have adopted safe and secure technologies for regular users to send or receive money online. 

Mobile payment eliminates the need to carry a physical wallet for carrying hefty amounts for transactions. Moreover, the mobile payment transaction saves a lot of time for the user, by making transactions happen instantly. 

M-commerce for shopping and payment

Mobile Commerce in Logistics 

Mobile Commerce has dramatically influenced the logistics industry. It finds its application in cargo tracking, inventory management, and vehicle positioning.  

Cargo tracking system can be accessed on a mobile device to obtain timely information of the freight like transit, delivery period, consignee, delivery vehicle information etc. Cargo tracking system improves logistics services level effectively. 

The inquiry process is rapid and straightforward as the information received on mobile devices is tracked instantly. Enterprises can immediately check the status of orders and confirm whether the product is delivered to customers anytime and anywhere.  

Additionally, mobile inventory management can keep track of real-time updates of databases. Keeping track of goods in inventory helps service providers in determining the timely delivery to customers, improve customer service and maintain a competitive edge in the market. Businesses can also keep track of the transition of vehicles through the GPRS network system. 

Mobile Trading 

Mobile trading refers to trading in the stock market using a smartphone or tablet. Mobile trading apps offer users the convenience of checking the stock market’s performance using a mobile device. Mobile trading has made it possible for users to execute trades instantly from any location. 

Users can manage their portfolio and buy and sell stock using the mobile trading app. Mobile trading has become even more popular as most stock brokerages offer apps to perform trades. 

The benefits of mobile trading are:

  • easy transactions
  • live data access at the fingertips
  • better insight
  • real-time data access, and more. 

Above all the benefits of mobile trading, the ability of traders to take complete control over the investment without the interference of brokers is the most significant advantage. 

Mobile Ticketing 

Mobile ticketing is yet another vital service of Mobile Commerce. Now, people need not wait in a long queue to purchase tickets for trains, flights, movies, events and more. Using mobile ticketing, a user purchases tickets through mobile devices.

Mobile ticketing has made the life of people easy in many ways. Once a ticket is booked, the digital ticket is automatically generated and saved on a mobile device. This saves the user’s time in getting the ticket in printed form. 

Digital tickets can be presented by the user for entrance. The barcode is scanned to confirm the record of the purchase.

Mobile Gaming  

Mobile gaming is one of the fastest-growing sectors in India. According to an article published in the Business World, India has over 365 million mobile gamers, and it is likely to increase rapidly in the future. The market value of the gaming sector stands at $1.2 billion and it is predicted to increase to $3 billion by 2023, with Gen-Z accounting to be the target user.

The rise of the gaming sector in India is mainly due to the adoption of digital devices by a growing population. Mobile gaming is overtaking desktop gaming due to its accessibility and more youngsters using smartphones. 

Mobile gaming is recognized as the future of leisure. Companies and marketers see considerable opportunities in the gaming industry. New ideas keep coming up making the mobile gaming industry more engaging and innovative. 

In mobile gaming, in-game purchases are used as a source of commerce. It refers to burying entities in the virtual world while being involved in the game.  

In-game purchases by players help companies generate revenue and also help developers to update a game and make it even more exciting. 


Mobile Commerce is not expanding at a monumental pace but with time it will continue to grow with the advanced use of technology in M-commerce. Businesses which are into the online space must ensure to invest in Mobile Commerce effectively as it is a great way to add value to the business. 

Through M-commerce businesses can enhance interaction with their customers, boost sales, offer faster services, improve features, and more. 

Being a technology-driven logistics service provider, Pickrr recognizes the importance of M-commerce in almost every aspect of logistics. Sign up with Pickrr and utilize a single app for multiple shipping solutions. Access Pickrr’s dashboard, calculate shipping rates, track orders, and more on the advanced Pickrr app.

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