What is 'Mobile Commerce'

Mobile commerce, also referred as m-commerce, is the use of wireless handheld devices such as cellular phones and laptops to conduct commercial transactions online. Mobile commerce transactions continue to grow, and the term includes the purchase and sale of a wide range of products and services, such as online banking, bill payment and information delivery.

BREAKING DOWN 'Mobile Commerce'

The increasing adoption of electronic commerce has provided a strong foundation for mobile commerce. The rapid growth of mobile commerce is being driven by a number of positive factors, including the demand for applications from an increasingly mobile consumer base; the rapid adoption of online commerce, thanks to the resolution of security issues; and technological advances that have given wireless handheld devices advanced capabilities and substantial computing power.

The Convenience of Mobile Commerce

The range of devices that are enabled for mobile commerce functionality is growing, having expanded in recent years to include smartphones and tablets. For example, both Apple Pay and Android Pay allow customers to seamlessly purchase at stores or in mobile commerce applications. Mobile commerce has also accelerated through social media platforms, allowing users to purchase products and services. Facebook, Twitter, Pinterest and Instagram launched "buy" bottoms on their mobile platforms in 2015. Mobile commerce sales in the United States are expected to reach $142 billion in 2016.

Ways to Improve Mobile Commerce

It is important that mobile web pages load quickly, as customers like to make instant purchases, and pages that load promptly are likely to result in higher sale conversions. Mobile checkouts must be enhanced to allow customers to easily enter payment information. Ideally, the customer could add the payment information using a mobile wallet that avoids the use of manual entry, reducing human error and facilitating a smooth checkout experience.

Mobile Commerce Videos and Marketing

Videos can be used on a mobile website or application to better demonstrate an item's key features. In the fourth quarter of 2015, roughly 50% of video downloads were from mobile devices. Mobile commerce is likely to generate more revenue with increased mobile-related marketing. For example, an online foreign exchange broker may send a link for a demo of its new mobile trading application. Mobile web page banners and videos can also be used for advertising.

Mobile Web and Mobile Applications

Consumers typically use Google, emails and/or social media promotions to initiate their online shopping searches, leading them to mobile browsers. As a result, traffic and purchase conversions through browsers outperform those through mobile applications. However, it is important that mobile applications are used in conjunction with mobile websites to enhance the consumers' overall shopping experience. For example, mobile applications can be used to facilitate customer engagement that may lead to repeat buyers.

RELATED TERMS
  1. Mobile Marketing

    Mobile marketing is marketing that takes place via mobile devices ...
  2. Mobile Advertising

    Mobile advertising is a method of advertising that appears on ...
  3. Enterprise Mobility

    Enterprise mobility describes a trend in business where work ...
  4. Mobile First Strategy

    Mobile first strategy is trend in website development where designing ...
  5. Mobile Banking

    Mobile banking is the act of doing financial transactions on ...
  6. Mobile Health

    Mobile health is the practice of medicine using new mobile technologies.
Related Articles
  1. Small Business

    Mobile Ad Competitors: Facebook Vs. Google

    Facebook and Google are locked in a heated battle in the mobile advertising sweepstakes. Who will win?
  2. Financial Advisor

    Why Advisors Must Create a Mobile Strategy NOW (AAPL, GOOG)

    Mobile devices will replace laptops and desktops. Financial advisors must deal with this revolution to ensure their marketing strategies are up to speed.
  3. Investing

    China Mobile: Just How Big is It? (CHL, CHU, CHA)

    The story behind China Mobile, the biggest company you might never have heard of.
  4. Investing

    Mobile Advertising to Surpass Desktop in 2017

    Arriving a year earlier than previously predicted, mobile advertising will overtake the desktop advertising spends in 2017
  5. Financial Advisor

    What Google's Shift to Mobile Means to Advisors

    Financial advisors now must ensure their websites are optimized for mobile devices. Here's what's at stake.
  6. Managing Wealth

    The Future Of Mobile Banking (JPM, BAC)

    Typically slow to react to technological change, retail banks are finally recognizing the benefits it provides to consumers as well as the cost savings it gives the firm.
  7. Investing

    China Mobile Stock: A Dividend Analysis (CHL)

    Learn the drivers of China Mobile's business and cash flow to help determine if it is a suitable component of a diversified dividend portfolio.
  8. Investing

    Best Mobile Payment Apps for Tap and Pay

    There are four big players now – not counting the Starbucks app, which may be the one you've actually tried.
  9. Financial Advisor

    Mobile Investing: What Investors Want

    Financial advisory firms that want to maintain their competitive edge need to stay abreast of the latest mobile technology to keep their customers happy.
  10. Investing

    Capitalizing on Mobile Advertising: Twitter Vs. Facebook Vs. Google

    Learn how Twitter, Facebook and Google are faring in the race to dominate mobile advertising, and discover the differing successes the three companies are having.
RELATED FAQS
  1. How does Facebook (FB) make money?

    Examine third quarter 2014 revenue data for Facebook and increases in advertising, mobile advertising, daily active users ... Read Answer >>
  2. 3 Tips to Refinance a Mobile Home Loan

    Refinancing a mobile home loan is possible if the borrower meets certain criteria. Here are a handful of useful tips on refinancing ... Read Answer >>
  3. What portion of the telecommunications sector will benefit most from continued growth ...

    Learn what portion of the telecommunications sector will benefit most from continued growth in the use of cellphones, particularly ... Read Answer >>
  4. Who are Apple's (AAPL) main competitors in the tech industry?

    Explore Apple's competitive position in the many industries in which it operates. Learn about the different products and ... Read Answer >>
  5. What countries represent the largest portion of the global retail sector?

    Learn about the five countries that dominate the global retail sector: Japan, Germany, the United Kingdom, China and the ... Read Answer >>
  6. Which segments of the telecommunications sector have the toughest competition?

    Read about competition in the telecommunications sector and how the monopolies of old have crumbled around new technology ... Read Answer >>
Hot Definitions
  1. IRS Publication 970

    A document published by the Internal Revenue Service (IRS) that provides information on tax benefits available to students ...
  2. Federal Direct Loan Program

    A program that provides low-interest loans to postsecondary students and their parents. The William D. Ford Federal Direct ...
  3. Cash Flow

    The net amount of cash and cash-equivalents moving into and out of a business. Positive cash flow indicates that a company's ...
  4. PLUS Loan

    A low-cost student loan offered to parents of students currently enrolled in post-secondary education. With a PLUS Loan, ...
  5. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  6. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
Trading Center