As against E-commerce that involves transacting through the Desktops or laptops, M-commerce (mobile commerce) is the buying and selling of goods and services through wireless handheld devices such as cellular phones and personal digital assistants (PDAs). The rapid growth of mobile commerce has been driven by various positive factors.
Transaction, information, and communication are all made possible today, through one single channel, called the mobile. Mobile commerce is undoubtedly paving the way customers shop these days. It’s imperative for the businesses to give their customers accessibility when on the move and a user-friendly mobile experience. Applications are introduced and purchasing and payments are made easier and hassle-free either through a mobile-optimized website or a dedicated app.
Mobile commerce has also accelerated through social media platforms, allowing users to purchase products and services on them as well. Nevertheless, Social Media titans, Facebook, Twitter, Pinterest and Instagram launched “buy” buttons on their mobile platforms in 2015, forecasting the Mobile commerce to reach $142 billion in 2016.(Ref: Investopedia). Retailers who created a dedicated app for their business saw a huge surge in customer response, with 58% of all mobile revenue coming from the app. ‘Kissmetrics’ shows that 78% of mobile phone users convert when searching for such information. This was compared to a 61% conversion rate from PC/laptop users, and 64% on tablets.
Various Industries show a significant effect of the Mobile commerce.
Financial Services: Customers can use their handheld devices to access their account and pay their bills, at any given time and from any place. This convenience of mobile banking is a boon to the banking segment.
Stock & Brokerage: The Stock market quotes can be instantly displayed and transactions are carried out on the go. Also, brokerage services are facilitated with the Mobile way of transacting.
Telecommunications: Service changes, Account reviews, and payments can be conducted on the mobile devices with no time and location constraints.
Service: From beauty to labor, from teachers to doctors, Food to movies, customers can request for any service, order and also pay for them through the smartphone apps.
Retail: Shopping on the go with the convenience of various secured payment modes makes customers shop at ease, hence accelerating the business for the Retailers online.
Information services: Financial, National and international News, Sports figures, traffic updates all made available on a single mobile device.
To conclude, business owners are realizing M-commerce to be an important way to enhance their brands, increase their sales and keep them up with competitors. The Companies of the league of IBM are also trying to incorporate speech recognition software as a way to ensure better security for mobile transactions.
The future of m-commerce is bright and looks like it’s getting even brighter.