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'

Mobile commerce is founded upon the increasing adoption of electronic 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 Wallet

    A mobile wallet is a virtual wallet that stores payment card ...
  2. Commerce

    Commerce refers to the exchange of goods, services or something ...
  3. Mobile Health

    Mobile health, or mHealth, refers to the use of mobile technology ...
  4. International Commerce

    International commerce is trade between companies in different ...
  5. Online-to-Offline Commerce

    Online-to-Offline Commerce is a business strategy that draws ...
  6. Energy And Commerce Committee

    The Energy and Commerce Committee is a committee of the United ...
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. Tech

    Mobile Payments Could Replace Cash By 2016

    Could paper money be replaced by mobile payments in the near future?
  3. Tech

    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

    Cisco: Mobile Data Traffic Up Sevenfold by 2021

    Finding: More of the planet will have mobile phones than running water in five years' time.
  5. 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.
  6. Tech

    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. Personal Finance

    Retailers Are Going Mobile: How You Can Benefit

    New technology creates increased competition for retailers, and puts consumers in a winning situation.
  8. 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.
  9. Investing

    TD Ameritrade Adds Education to Its Mobile Trading App

    TD Ameritrade added educational videos to its mobile app, aiming to arm its clients with more weapons to make investment decisions.
  10. Tech

    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.
RELATED FAQS
  1. 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 >>
  2. What Are the Pros and Cons of Online Checking Accounts?

    Learn about the ways an online checking account can save you time and money, but understand the drawbacks before signing ... Read Answer >>
  3. Who are Apple's main competitors in tech?

    Explore Apple's competitive position in the many industries in which it operates. Learn about the different products and ... Read Answer >>
  4. How important is advertising revenue in the Internet sector?

    Learn about the importance of advertising revenue in the Internet industry. Find out how much Internet firms rely on advertising ... Read Answer >>
  5. What is the growth rate of the electronics sector?

    Read some projections about the growth rate of the electronics sector. Find out which products are primed to be responsible ... Read Answer >>
  6. Is Apple Pay safe and free?

    Learn more about Apple Pay, one of Apple's newest and most metamorphic programs that is changing the way consumers purchase ... Read Answer >>
Trading Center