What is Mobile Commerce? Definition, Examples and Trends for 2023

With the pandemic outbreak, the world has seen a rapid rise in mobile device usage. Nowadays, practically any operation, transaction, or purchase can be made through mobile apps with just a few finger taps. People immensely rely on their smartphones, and at this point, mobile apps are no longer used purely for communication and entertainment purposes, but they have become a powerful channel between businesses and consumers. This factor has led most e-commerce brands to switch to the so-called m-commerce mode. 

Due to the widespread adoption of mobile e-commerce, many companies are searching for ways to merge their digital-driven strategies into their daily operations. In this article, we will get you across m-commerce definition, share examples of companies that have successfully implemented it, and highlight the upcoming digital commerce trends for 2023. Let’s jump into the mobile commerce exploration!

What is Mobile Commerce?

Before we proceed with the types, let us clarify what mCommerce is. Mobile commerce, also known as m-commerce, refers to buying and selling goods and services via mobile devices, like smartphones and tablets. It enables consumers to purchase products from any location, and time, making just a few taps on the phone. Mobile commerce is gaining momentum this year, and it has now become a vital platform for the retail industries that are striving to provide clients with a fast, efficient, and convenient way to shop. 

However, the product choice doesn’t stop on physical things — it also includes digital goods and services like mobile applications, software, music, games, etc. It unlocks a wide range of new opportunities for businesses to make a better profit from offering personalized shopping experiences and driving customer engagement.

M-Commerce vs E-Commerce: What’s the Difference?

Ecommerce and mCommerce are buzzwords that are sometimes used interchangeably, but they're not synonymous. Ecommerce implies people's interaction with goods and services, either buying or selling, using desktop computers, laptops, or other electronic devices, whereas m-commerce focuses on digital transactions made particularly through mobile devices: smartphones and tablets. In comparison to mCommerce, which is a fairly fresh concept, e-commerce has been around for some years and has witnessed substantial development.

Mobile commerce allows people to shop on the go, making it a more accessible alternative for many consumers. Also, you can activate mobile push notifications to enhance your shopping experience and get relevant updates about current offers and news. One more difference lies in location tracking: mCommerce monitors your location using GPS, Wi-Fi, and cellular connections, while eCommerce tracks location through the IP address.

Types of Mobile Commerce

There are three basic types of m-commerce that include mobile shopping, mobile banking, and mobile payment. Those, in turn, have several subcategories that can be expanded even further. Let’s take a look at each one separately. 

Mobile shopping apps

Here, we relate to mCommerce mobile apps offering various services, starting from clothes shopping and food delivery and finishing with e-tickets and content purchases.

Mobile banking 

This type focuses mostly on conducting digital transactions using mobile apps. The only thing it requires is registration. Upon signing up for your credit or debit card account, you may use it as much as you like.

Mobile payments

This category relates to the practice of paying for products and services via a mobile device, such as a smartphone or tablet. Users just need to download a payment app, link their bank account or credit/debit card, then scan a QR code or input a merchant code to complete a transaction via mobile payments. By using GDPR and SOC 2-certified QR code generators, you protect both your data and the data of users scanning your codes. Uniqode, for example, is one such QR code generator, ensuring that mobile payments are not only easy but also secure.

Advantages of M-Commerce

Who doesn’t use mobile devices these days? Of course, everyone does! In this part, we will discuss the advantages of mCommerce for both customers and businesses.

Convenience

Using your smartphone for online purchases and other stuff is super convenient, as you do it on the go and don't rush between several shops to compare prices. Thanks to the mobile era, we have access to the whole retail landscape with a wider range of products and services to choose from. It saves so much time when you simply open your mCommerce app, add goods to your virtual shopping cart, or leave if you haven’t found anything decent instead of storming traditional shops in search of exactly “that thing”! During an age when time has never been so important, such flexibility is the greatest value one can offer.

Personalization

By allowing applications to use your cookies, you can receive personalized product recommendations based on your previous shopping experiences and recent queries. Thus, customers don’t have to waste their time browsing through different shops to find precisely what they need, but they can go directly to the popped-up options and check their availability in the store. 

But not only do clients benefit from personalization — businesses get a lot of profit as well. When companies collect data about their customers, they can create more targeted marketing campaigns that meet clients’ needs and leave them satisfied with the service. If you want your customers to return back, send them personalized in-app messages with actual reminders that will resonate with their desires. 

Faster transactions

M-commerce has become the ideal tool for time-conscious people, owing to the ability to make payments with a few clicks on your phone. Shoppers can now make purchases spontaneously and securely using mobile payment methods like Apple Pay and Google Wallet, which makes impulse purchases more alluring than ever. M-commerce is expected to become even more influential in shaping our purchase experiences, and still has much to impress us with. 

Enhanced data collection

Mobile shopping has transformed the way firms acquire client data. Companies may now collect data on consumer behavior and preferences in real-time via mobile devices, allowing them to generate focused marketing campaigns and tailored product offerings. Mobile commerce data may also give useful insights into mCommerce trends and purchase behaviors, allowing firms to make more rational choices.

Lower costs for businesses

Mobile commerce has emerged as a go-to tool for firms trying to cut expenses. By selling things online, businesses significantly reduce their expenditures associated with physical locations and staff. Business owners can largely save up on office premises and staff if they hire remote teams to manage mobile operations, taking advantage of a remote work arrangement that enhances flexibility and efficiency. M-commerce also enables firms to automate many of their activities, such as inventory management and order processing, freeing up resources to focus on other, more important tasks. 

Competitive advantage

Many years back, companies were competing for more sales, striving to correspond to market demands and create innovative mCommerce solutions. Now, they are fighting for customers, or, to be more precise, their loyalty. Companies are seeking ways to differentiate themselves from their competitors by adding some unique features to their products or services. Customer data provides merchants with valuable insights that help launch actionable targeting and raise brand awareness among consumers. Alongside recognition comes the challenge of maintaining high-level performance, which is no mean feat. But, with the right strategy and great dedication, you can stay ahead of the curve and gain a significant edge over others.

Global reach

The emergence of mobile commerce has taken business-customer communication to a worldwide scale. With mobile devices becoming more common in our everyday lives, m-commerce has enabled businesses to access clients anywhere and at any time, providing them with an exceptional omnichannel experience. This has created chances for firms to reach new audiences in other parts of the planet by expanding their consumer base outside their local markets.

8 Top M-Commerce Trends for 2023

Digital Wallets

Mobile wallets are set to become one of the hottest trends in the world of commerce by 2023. As the world gets more digitized, consumers are searching for more accessible and safe methods to handle their money. Mobile wallets do just that and are expected to grow in popularity because of their convenience and security.

Voice shopping 

Chatbots

Shopping online, people might want to get more detail about a certain product or service. As there are no in-store assistants, they might lack real communication, which ultimately makes people doubt the shops' reliability. With the growing number of mobile purchases, there is a great shortage of human assistants who would handle calls 24/7. This is when chatbots come into play. They are designed to engage in interaction with a client, giving them answers to frequently asked questions or redirecting them to other information sources.

5G Technology

As the globe becomes more connected and reliant on a fast, dependable internet connection, 5G technology is expected to be a prominent trend in 2023. 5G technology, with its lightning-fast speeds and minimal latency, is poised to transform how we use the internet and interact with our gadgets.

Artificial Intelligence

Artificial intelligence (AI) is expected to be the topic of the IT world in 2023. With its ability to learn, analyze, and interpret data, AI is set to transform the way we work, live, and interact with the outside world.  AI-powered systems can handle monotonous jobs, allowing people to focus on more intricate and creative activities. As AI evolves and improves, we may anticipate even more inventive and game-changing mCommerce mobile apps in the future.

Mobile-first design

As we approach 2023, it's apparent that mobile-first design will become an even more essential trend in e-commerce. This practice is expected to gain traction as the number of individuals who rely primarily on their phones for internet access grows. As a result, firms that do not have mobile-friendly websites risk losing prospective clients. Avoid falling into that trap and get professional help with optimizing your mobile app from the Reteno expert team. Schedule a demo with us and get your personalized recommendation with an experienced outlook on your future growth.

Examples of Mobile Commerce

Want to learn about Mobile commerce in use? Take a look at several examples of m-commerce usage by world-leading companies.

Amazon

Amazon has recently introduced a new feature that allows you to shop for millions of tangible things directly from the Kindle Fire and other Android applications. You can also buy what you need quickly and effortlessly thanks to Amazon's one-click shopping experience and fast Prime shipping.

Uber

Uber is expanding its ride-sharing services to include food delivery from local eateries in select locations. The new option is accessible via a separate app, making it even easier for consumers to order food and have it delivered to their homes.

Starbucks

If you like Starbucks, you should try installing their app. You'll be able to earn prizes every time you order your favorite coffee or snack. Furthermore, the app allows you to order ahead of time and pay for your products at certain locations, saving you time and effort.

Final Thoughts

Getting to the foreground of virtual marketplaces, mCommerce has brought a dramatic change to the company's approach to marketing as well as people’s perception of shopping. Although the trend still has a long way to go, its future looks promising, given the extent of the world’s development. Have you optimized your mobile business yet? Bring your business to prosperity with us.

‍