What is mobile commerce and what are its operating principles?

Publication date: 2024-06-03

What is mobile commerce and what are its operating principles?
Almost everyone now actively uses a smartphone. And, of course, gadgets influence their owners. In particular, purchases with their help take a minimum of time, which leads to an accelerating pace of development of mobile commerce.

What is m-commerce and what principles underlie it? What types are there? What trends are observed in the industry? Answers to questions are in this article.

What is mobile commerce

The concept implies conducting financial transactions through a mobile gadget - a tablet or smartphone. It is one of the areas of electronic commerce, the totality of all electronic transactions. In simple words, shopping from a laptop or PC is electronic commerce, and from a phone or tablet is mobile commerce.

Mobile commerce growth dynamics

The industry is rapidly developing due to such advantages as speed, accessibility, and simplicity. The numbers confirm this. According to an expert assessment by Mordor Intelligence, the mobile commerce market today is valued at $1.45 trillion. According to forecasts, by 2029, this figure will reach $1.99 trillion with an average annual rate of 6.54% per year.

Types of mobile commerce

M-commerce includes banking, marketing, sales and payments (including from mobile balance). The components are united by the use of applications installed on a tablet/smartphone and maximum automation of operations.

Mobile banking

A person can manage a bank account through the application. It requires network connection and authorization. In that case, access to the account (replenishing the balance, viewing credit history and receipts, etc.) is possible 24/7. The advantages of mobile banking are functionality, speed, simplicity, and low commission. Disadvantage: losing your phone increases the risk of your account being hacked by attackers.

Mobile Marketing

We are talking about promoting a product/service among mobile device users. The peculiarity of this type of marketing is that the content is personalized for the target audience, which makes promotion more effective. This type of mobile commerce includes:

• applications;
• QR codes;
• banner and in-game advertising;
• bluetooth, voice promotion;
• e-mail/sms mailings.

Mobile payments

Mobile commerce allows transactions to be carried out on gadgets. Payments are made using applications or external links that lead the buyer to a page for entering data and paying for the product/service.

Payments from mobile balance

Direct Carrier Billing is a mobile payment method that makes it possible to pay for purchases online using funds from a mobile account. A bank card is not needed as the transaction only shows the phone number, so the client's data is not at risk. DCB also helps to quickly place an order where the banking infrastructure is not developed.

Mobile trading

Mobile sales use gadgets to automate the activities of managers. First, this concerns taking orders. In addition, with the help of applications, data collection and exchange with the head-program in the office, sending goods from warehouses and retail outlets, and payment for orders are automated.

Pros and cons of mobile commerce

We have mentioned the apparent advantages. Now, let's talk about those that don't catch your eye at first.
M-commerce personalizes the customer experience. Marketing using gadgets is reaching a new level, as smartphones are ideal for mailings and advertising on social networks and applications. It becomes possible to analyze each client to track trends and identify behavior patterns. The effectiveness of trade offers based on this increases.
The disadvantage of mobile commerce is that there is no network/access to Wi-Fi, and there are no purchases. Also, ~73% of buyers are concerned about the risk of data theft while shopping via smartphone.

Elements of an effective mobile commerce strategy

Let's talk about m-commerce trends in 2024. Each of the eight points below should definitely be integrated into your brand development strategy for the current and next year.

Online shopping in 1 click

A buyer who is visiting the website for the first time enters his data. The website remembers it, and when making repeated purchases, the user no longer wastes time on this. As a result, financial transactions are accelerated, which increases conversion and improves customer experience.


A long-term trend in mobile commerce is programs that simulate communication with a manager. Chatbots replace "live" employees when you need to answer common questions, advise on choices, list the benefits of a product, etc. The program works 24/7 and saves the resources of a physical employee.


One of the leading trends of 2024 in mobile commerce is contactless payment technology using a smartphone, which simplifies and speeds up transactions. Using NFC tags, the buyer learns more about the product, which makes the shopping experience more enjoyable and interesting.

Smartphone applications

For most people, shopping through a mobile app is preferable to shopping through a browser. Applications are optimized for smartphones, unlike many Internet pages. According to the American consulting company Invesp, 65% of companies do not adapt websites for mobile devices, so optimization will be an advantage.

Maximum availability

This is one of the key advantages of mobile commerce. Pay attention to customers with disabilities (visual impairment, hearing impairment, etc.) who are interested in mobile banking and online shopping. The priority of each company is to maximize accessibility for such consumers, who make up a significant part of the market.

Artificial intelligence

AI has revolutionized m-commerce by personalizing the experience of each user. The technology analyzes customer information and provides personalized recommendations. With the help of augmented reality, artificial intelligence allows one to try on accessories and clothes remotely, shows how a particular item fits into the interior, etc.

Multi-channel Marketing

You can and should sell omnichannel (multi-channel). A simple example: a company owns an offline store and website, offers a smartphone application, and promotes itself through social networks. Omnichannel mobile commerce requires more effort than standard marketing, but the results are many times better.


M-commerce accelerates the evolution of the online shopping market. As the adoption of gadgets increases, the pace of development of mobile commerce is growing. Keep an eye on trends and implement them to improve the experience and maximize the loyalty of your audience. The structure of your mobile commerce strategy and its subsequent implementation will help you maintain competitiveness and increase the efficiency of your investments.
PayGate specialists are ready to help organize the payment infrastructure for m-commerce and localize your payment instruments for the Kazakhstani market.

Author: Paygate

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