M-commerce stands for mobile commerce. This term refers to the buying and selling of products and services using mobile phones and other wireless handheld devices. For example, a PDA (personal digital assistant) is a portable wireless device.
Kevin Duffey coined the term “mobile commerce” in 1997 when he initiated the Global Mobile Commerce Forum. “Delivering e-commerce directly to consumers, anywhere, through wireless technology,” he said. Many people choose to think of Mobile Commerce as “a selling point in your customer’s pocket”.
The Business Dictionary has the following definition of mobile commerce:
“E-commerce (e-commerce) takes place over mobile communication devices such as mobile phones or personal digital assistants (PDAs)”.
M-commerce and e-commerce
Some see mobile commerce as the next generation of e-commerce. E-commerce or e-commerce is a business model in which business transactions take place online, i.e. over the Internet.
Mobile commerce is a rapidly growing part of e-commerce. In 2017, Statista.com reported that m-commerce represented 34.5% of all e-commerce sales. Experts estimate that this rate will reach 53.9% by 2021. In the US in 2017, Amazon.com had 40% mobile reach, making it the most popular shopping app in the country. Amazon.com is ahead of Walmart, e-Bay and other retail giants.
A trigger for new industries
The emergence of mobile commerce has created many new online businesses. Here is a list of the most popular right now:
- Mobile banking services.
- Information services such as stock quotes, sports scores, news, traffic reports and emergency alerts.
- Location-based service.
- Electronic boarding pass.
- Mobile ticket office.
- Mobile money transfer.
- Integrated payments.
- Contactless payments.
- Loyalty cards, coupons and other mobile marketing features.
- Buy digital content.
- Deliver digital content.
Mobile commerce companies are targeting young consumers
Device vendors target teenagers and young adults because they use mobile phones more than any other age group. Online sellers are partnering with major players in the telecom industry to promote e-commerce and mobile commerce so users can shop with their smartphones.
According to Techopedia.com:
“One of the characteristics of mobile commerce sites is the adaptation of web pages to make them easier to use with smaller screen sizes. There are a number of adjustments that can be made, including removing large graphics and optimizing fonts for better viewing and usability.
Difference Between E-Commerce and Mobile Commerce
E-commerce and mobile commerce have similar meanings and purposes. However, they are not the same.
When people do their e-commerce activities using a laptop or desktop computer, they need to find a place to buy and sell things. On the other hand, with mobile commerce, people “buy and sell on the go”. In other words, they use their mobile device and can conduct their business transactions anywhere as long as they are online.
E-commerce includes any type of commerce online, i.e. the use of laptops, desktops, tablets and smartphones. M-commerce includes only devices that we carry with us, such as smartphones and possibly tablets. In other words, e-commerce includes all mobile commerce activities and more.
Julia Tokareva, who works at RubyGarage, wrote:
“Typically, e-commerce business is done using desktop and laptop computers, so users have to search for places to transact.”
“M-commerce involves the use of mobile devices, so people can conduct their business transactions wherever they are as long as they can access the Internet on their smartphones and can trade with just a few clicks on the screen.”
