What is M-Commerce?

• M-commerce (mobile commerce) is the buying and selling of goods and services through
wireless handheld devices such as smartphones and tablets.

• M-commerce is a form of e-commerce that enables users to access online shopping platforms
without the use of a desktop computer.

• Over time, content delivery through wireless devices has become faster, more secure and
scalable. As a result, mobile commerce has grown rapidly.

• It uses wireless technology to facilitate transactions and interactions.

The origin of M-Commerce

• The phrase mobile commerce was first coined in 1997 by Kevin Duffey at the
launch of the Global Mobile Commerce Forum.

• The concept was brought to life in the same year(1997) by Coca-Cola which
installed two mobile-phone enabled vending machines in Helsinki which
accepted payment via SMS text messages.

• The idea of the concept was further validated in 1998 when the sale of digital
content like ringtones was made possible on mobile devices by Radiolinja.

• There was no turning back after 2000. Mobiles facilitated payments and
transactions relating to parking, train ticketing, and much more.

• There was even a shift of wallet from your pocket to your mobile phone in 2004
with the launch of GCash.
Components (Types) of m-commerce

M-commerce is categorized based on the following three basic functions:

• Mobile shopping enables customers to buy a product using a mobile device with
an application such as Amazon or a web app. Customers can browse products,
compare price, amd make purchase.

• Mobile banking is online banking designed for handheld technology. It enables

customers to access accounts and brokerage services, conduct financial
transactions, pay bills and make stock trades. This is typically done through a
secure, dedicated app provided by the banking institution.

• Mobile payments are an alternative to traditional payment methods, such as

cash, check, credit and debit cards. They enable users to buy products in person
using a mobile device through Google pay, phonepay, and even cryptocurrency
transactions.

Besides these three others can be

• Mobile Applications: Apps designed for ticketing, marketing, advertising and

all.

• Wireless Networks: Technologies like Wi-Fi, 4G, 5G, Bluetooth, and NFC
(Near Field Communication) provide connectivity for mobile transactions,
required for M-Commerce.

• Middleware: Software that connects Mobile applications with backend systems.

• Security Infrastructure: Encryption, authentication protocols, firewalls, and

biometrics ensure secure M-Commerce transactions.
 Comparison between E-Commerce (Electronic Commerce) and M-Commerce
(Mobile Commerce):

Feature E-Commerce M-Commerce

Buying and selling of goods and Buying and selling of goods and services
De nition services over the internet using using mobile devices (smartphones,
computers or other digital devices. tablets) over wireless networks.
Smartphones, tablets, PDAs, wearable
Devices Used Desktop computers, laptops, tablets.
devices.
Requires wired or wireless internet Works on wireless networks like 4G,
Connectivity
connection (Wi-Fi, broadband). 5G, Wi-Fi, NFC, Bluetooth.
Web browsers and dedicated e- Mobile applications, mobile-optimized
Platform
commerce websites. websites, SMS-based services.
User Requires a stable internet connection, Allows transactions on-the-go, anywhere
Accessibility usually accessed from home or of ce. and anytime.
Speed & Dependent on system hardware and Faster transactions due to mobile-
Convenience internet speed. optimized apps and services.
Uses biometric authentication
Uses SSL encryption, rewalls, and ( ngerprint, face recognition), two-
Security
strong authentication. factor authentication (2FA), and app-
based security.
Payment Credit/Debit cards, Net Banking, UPI, Mobile wallets (Google Pay, Apple Pay,
Methods Digital Wallets. Paytm), NFC payments, carrier billing.
Amazon, Flipkart, eBay, Alibaba Amazon App, Flipkart App, Uber,
Examples
(Desktop Sites). Google Pay, Paytm (Mobile Apps).

• E-Commerce is broader, covering all online transactions, while M-Commerce is a

subset that speci cally involves mobile-based transactions.

Development of M-Commerce
M-Commerce has evolved through several phases:

(i) First Phase (1997-2003): Basic Mobile Transactions

• SMS-based payments and simple WAP-based shopping sites emerged.

(ii) Second Phase (2003-2010): Rise of Smartphones

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 • Introduction of touchscreen smartphones and mobile browsers enabled smoother
mobile shopping.

• E-commerce giants like Amazon and eBay launched mobile applications.

(iii) Third Phase (2010-2015): Mobile Apps & Digital Wallets

• The development of mobile wallets (Google Wallet, Apple Pay, PayPal Mobile) and
app-based shopping.

• Social media platforms like Facebook and Instagram introduced shopping features.

(iv) Fourth Phase (2015-Present): AI, IoT, and 5G Revolution

• Use of AI-driven chatbots, voice assistants (Alexa, Google Assistant), blockchain,

and 5G connectivity for advanced M-Commerce experiences.

• Growth of mobile- rst businesses such as Uber, Swiggy, and Zomato.

Advantages and disadvantages of mobile commerce

The advantages of m-commerce include the following:

• Large customer base.

• M-commerce provides for a larger customer base and better retention

than e-commerce in general, because m-commerce capabilities are more
widely and easily accessible.

• Also, mobile analytics offers insights into customer shopping behavior,

pattern and history. To boost retention rates, businesses can use this data
to target shoppers with personalized offers and tailor-made discounts.

• Convenience.

• M-commerce makes it easier for customers to compare prices, read reviews and
make purchases when and where they want to do these things.

• Product variety.

• Customers can browse through a huge inventory of products while also

taking advantage of the competitive pricing.

• Automation.
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 • M-commerce automates a business's point of customer contact and sales
with a variety of mobile contactless payment options.

• Omnichannel Experience.

• M-commerce creates an omnichannel experience where products can be

sold via multiple channels -- e-commerce websites, Amazon, eBay,
Instagram. This approach makes it easier for customers to buy whenever
and wherever they want. Many e-commerce sites also offer one-click
checkout process.

Disadvantages of M-Commerce

1. Security Concerns
Mobile transactions can be vulnerable to security breaches, including hacking, phishing, and
malware attacks. Ensuring robust security measures is critical.

2. Technical Issues
Users may face technical issues like app crashes, slow loading times, and compatibility problems
with different devices and operating systems.

3. Privacy Issues
Collecting and storing user data on mobile devices raises privacy concerns, requiring businesses
to adhere to strict data protection regulations.

4. Limited Screen Size

The small screen size of mobile devices can make navigation and browsing more challenging
compared to desktops, potentially affecting user experience.

5. Dependence on Internet Connectivity

Mobile commerce relies heavily on internet connectivity, which can be a limitation in areas with
poor or unreliable internet access.

6. High Development & Maintenance Costs

Businesses need to invest in app development, updates, and security. Different platforms (iOS,
Android) require separate app versions.

Applications of M-Commerce

1. Retail and Shopping

Mobile Shopping Apps: Retailers like Amazon and eBay have mobile apps that allow users to
browse products, compare prices, read reviews, and make purchases.
Flash Sales and Offers: Mobile platforms often host exclusive flash sales, providing deals and
discounts to app users.
2. Banking and Financial Services
Mobile Banking: Banks offer apps for account management, fund transfers, bill payments, and
more.
Mobile Wallets: Services like PayPal, Apple Pay, and Google Wallet enable users to make
payments, transfer money, and manage finances securely.

3. Travel and Ticketing

Booking Apps: Mobile apps for airlines, hotels, and travel agencies allow users to book flights,
accommodations, and rental cars.
E-Tickets: Users can store and access tickets for flights, trains, concerts, and events on their
mobile devices.

4. Entertainment and Media

Streaming Services: Platforms like Netflix, Spotify, and YouTube provide mobile apps for
streaming video and audio content.
Gaming: Mobile gaming apps offer a wide range of games, from casual puzzles to complex
multiplayer experiences.

5. Healthcare
Telemedicine: Mobile apps enable patients to consult with doctors, schedule appointments, and
access medical records.
Fitness and Wellness: Apps for tracking exercise, diet, and health metrics are popular among
users aiming to maintain a healthy lifestyle.

6. Mobile Advertising & Marketing

Examples: Google Ads, Facebook Ads, Instagram Shopping
Businesses use push notifications, SMS marketing, and social media ads to target users.
Location-based ads provide personalized promotions.

7. On-Demand Services (Food, Grocery, Healthcare)

Examples: Zomato, Swiggy, BigBasket, Practo
Customers order food, groceries, or book doctor consultations via mobile apps.
Real-time tracking ensures faster deliveries.