Assignment on Mobile Commerce (M-
Commerce)
1. Introduction
Definition of M-Commerce
Mobile Commerce, also known as M-Commerce, refers to the buying and selling of goods
and services, making payments, and performing financial transactions using mobile devices
such as smartphones and tablets. It is a subset of e-commerce but specifically takes place
through wireless handheld devices.
According to Clarke (2001), “M-Commerce is any transaction, involving the transfer of
ownership or rights to use goods and services, which is initiated and/or completed by using
mobile access to computer-mediated networks with the help of an electronic device.”
Difference between E-Commerce and M-Commerce
- E-Commerce: Transactions take place through computers/laptops with internet
connection.
- M-Commerce: Transactions take place through mobile devices using wireless networks.
Importance
- With the rise of smartphones and mobile internet, M-Commerce has become the fastest-
growing segment of online business.
- It allows people to shop, pay bills, book tickets, and transfer money anytime, anywhere.
2. Evolution of Mobile Commerce
- Early Stage (1997–2005): First mobile commerce services included buying ringtones,
simple games, and prepaid mobile recharges via SMS.
- Mobile Banking Era (2005–2010): Banks started SMS-based banking and fund transfers.
- Smartphone Revolution (2007 onwards): Launch of iPhone and Android devices changed
the landscape. Mobile apps made shopping, payments, and entertainment easier.
- Present Era (2015–Now): Mobile wallets, UPI in India, contactless payments, and global
apps like Amazon, PayPal, PhonePe have made mobile commerce mainstream.
3. Features of M-Commerce
1. Ubiquity: Services available anytime, anywhere.
2. Convenience: Easy to use with just a smartphone and internet.
3. Personalization: Apps recommend products based on user behavior.
4. Accessibility: No need for physical shops or even computers.
5. Instant Connectivity: Real-time transactions and updates.
6. Security Features: Use of biometrics, OTP, and encryption.
4. Types of Mobile Commerce
1. Mobile Banking: Checking balances, fund transfers, paying bills through mobile apps (SBI
YONO, Google Pay).
2. Mobile Payments: Digital wallets like Paytm, PhonePe, Apple Pay.
3. Mobile Shopping: Amazon, Flipkart, Myntra apps.
4. Mobile Entertainment: Netflix, Spotify, YouTube, Mobile gaming.
5. Mobile Marketing & Advertising: SMS ads, push notifications, in-app ads.
6. Mobile Ticketing & Booking: Booking train tickets via IRCTC, movies via BookMyShow,
flights via MakeMyTrip.
7. Mobile Wallets: Securely storing money digitally to make fast transactions.
5. Technologies Used in M-Commerce
- Mobile Applications (Apps): Easy-to-use interfaces for shopping and payments.
- Mobile Wallets & NFC (Near Field Communication): For contactless payments in shops.
- QR Code Payments: Popular in India for UPI payments.
- UPI (Unified Payments Interface): Allows instant bank-to-bank transfers via mobile.
- Responsive Websites: Websites optimized for mobile browsing.
- Security Technologies: Encryption, SSL certificates, OTPs, biometrics.
6. Advantages of M-Commerce
1. Convenience: Transactions anytime, anywhere.
2. Speed: Faster payments and shopping.
3. Wider Reach: Businesses can reach customers worldwide.
4. Better Customer Engagement: Through personalized apps and notifications.
5. Cashless Transactions: Reduces dependency on physical cash.
6. Growth in Economy: Boosts digital economy and supports startups.
7. Disadvantages / Challenges of M-Commerce
1. Security Issues: Risk of hacking, data theft, fraud.
2. Internet Dependence: Requires stable mobile internet.
3. Digital Divide: Many rural people lack smartphones or digital knowledge.
4. Limited Screen Size: Though improving, mobiles are smaller than computers.
5. Battery and Device Issues: Requires charged devices with internet access.
6. Fraudulent Apps: Fake apps scam customers.
8. Applications of M-Commerce
- Banking & Finance: Mobile banking apps like HDFC, ICICI iMobile.
- Retail & Shopping: Amazon, Flipkart.
- Travel & Tourism: IRCTC Rail Connect, Ola, Uber, MakeMyTrip.
- Food & Delivery: Zomato, Swiggy.
- Healthcare: Online consultation apps like Practo, Pharmeasy.
- Education: Byju’s, Unacademy for mobile learning.
9. Future of Mobile Commerce
- 5G Technology: Faster speeds, smoother payments.
- Artificial Intelligence (AI): Personalized shopping recommendations.
- Chatbots: Customer support through mobile.
- AR/VR Shopping: Trying products virtually before buying.
- Voice Commerce: Using Siri, Alexa, Google Assistant for purchases.
- Blockchain Payments: More secure and transparent.
- Expansion in Rural Areas: Cheap smartphones will spread M-Commerce widely.
10. Case Studies
1. Paytm (India): Grew massively after 2016 demonetization, now India’s largest mobile
wallet.
2. PhonePe & Google Pay: Leading UPI platforms in India, handling billions of transactions
monthly.
3. Amazon Mobile App: Over 70% of Amazon’s orders in India come from mobile app users.
4. Apple Pay & Google Pay (Global): Secure and contactless payment systems adopted
worldwide.
11. Conclusion
Mobile Commerce has transformed the way people buy, sell, and pay. With the rise of
smartphones and digital payment systems like UPI, M-Commerce has become a backbone of
the digital economy. While there are challenges like security and rural connectivity, the
future of M-Commerce is bright with technologies like AI, blockchain, and 5G.
In short, the future is cashless, mobile-first, and global.
12. References
1. Clarke, I. (2001). “Emerging Value Propositions for M-Commerce.”
2. Turban, E., et al. Electronic Commerce: A Managerial and Social Networks Perspective.
3. KPMG Report on Mobile Payments in India (2024).
4. Statista – Mobile Commerce Market Size.
5. RBI Reports on UPI and Mobile Banking.
