Visualizing the Rise of mCommerce
The use of smartphones is becoming more widespread across the globe. As 2021 approaches, there will be more mobile phone connections than the number of people around the world.
Due to this it is no surprise that the mobile trade (mCommerce) industry is growing rapidly. In the year 2025 mCommerce will triple its percentage in U.S. retail sales.
The Three Types of mCommerce
What is mCommerce? It’s basically any transaction made using an mobile device. There are three types:
Mobile Shopping: Shopping that’s optimized for mobile devices. This can include shopping apps with dedicated shopping features and websites specifically designed for mobile usage as well as social media platforms with built-in shopping functions.
Mobile Banking: Similar to online banking, it is usually it is an application for mobile banking that gives you access on the go of your bank accounts.
Mobile payment: That covers smartphones, mobile wallets, non-contact transactions as well as money transfers. Mobile point-of-sale.
In another way, mCommerce is a branch of eCommerce that lets people purchase and sell items virtually anywhere via the use of a mobile.
Mapping Out the Market
mCommerce has taken over a significant share of eCommerce sales worldwide. In May 2021 it accounted for 70% of the total eCommerce sales in the world of retail.
However, some regions are embracing this quicker than other regions. For instance, in Asia-Pacific, 79.7% of the entire eCommerce sales in the region are conducted by mobile devices.
Why is mCommerce so prevalent across Asia-Pacific? One factor could be the region’s young (and technologically adept) population. People between the ages of 15 and 24 constitute 19% of the overall population.
This, along with Asia-Pacific’s high levels of wealth and its general digital competitiveness–especially in China–could help explain why mCommerce has taken off so quickly in the region.
While every region’s mCommerce market is different however, there is a steady growth trend all over the world. Over the five years to come the global market for mCommerce is predicted to reach $2.7 trillion in the next five years, with a rate of 34 percent.
The Pros and Cons
There are several positive effects, as well as some issues that arise due to the growing popularity of mCommerce.
The biggest benefit is its ease of use. mobile shopping provides consumers with on-demand shopping options that can be accessed anywhere provided there’s an internet connection.
It also provides an experience of shopping that is frictionless. For instance, with mobile wallets, shoppers don’t have to type in their credit card information to make purchases. It’s just one click away.
However, its rapid growth means that businesses must consider strategies to make their mobile apps more efficient. Similar to eCommerce technology, innovation in the world of mCommerce is swift and constantly evolving, which means that companies must stay flexible to ensure that they don’t get out of the game.
How Businesses Can Adapt
Despite these difficulties, mCommerce is expected to expand and companies will have to adapt to the changing needs of customers for them to remain relevant.