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What is mobile commerce?

Last updated on April 29, 2025

Mobile commerce is a transactional activity that happens on mobile devices like smartphones and tablets. Mobile commerce, also known as m-commerce or mCommerce, is a subset of e-commerce and refers to all shopping activities, from product discovery to browsing and purchasing.

M-commerce has grown tremendously thanks to increased access to mobile devices and wireless networks. According to eMarketer, retail mCommerce will account for 10.4% of all retail sales this year


Now, is having an eCommerce website enough to ride the rising wave of mobile commerce? Not exactly. 


This article will show you how to successfully implement mobile commerce for your business. But let’s not get ahead of ourselves. Let’s first look at why you must optimise your business for mCommerce in the first place.


Key benefits of mobile commerce

Here are some of the key benefits of adopting mobile commerce:
 

1. Convenience

The convenience of mobile commerce is one of its most compelling benefits. 


With mobile commerce, customers can shop anytime and from anywhere using their smartphones or tablets. This creates a seamless on-the-go shopping experience that fits into modern, busy lifestyles. 


Unlike traditional eCommerce, which may require a computer, mobile commerce allows for quick product browsing, comparison, and purchases, all with a few taps. 


This 24/7 access lets businesses remain open to customers around the clock. It allows you to meet users exactly where they are, whether they’re commuting, waiting in line somewhere, or simply relaxing at home. 


Mobile payments like Apple Pay or Google Wallet further enhance the experience. These wallets make checkouts faster and more streamlined, resulting in a frictionless shopping experience.​


2. User experience

User experience is crucial for the success of any online business. Customers must have a seamless experience interacting with your website; otherwise, they won’t engage with your brand.


UX is so important that even Google prioritises mobile-friendly websites when indexing and ranking sites.


The good news is that mobile commerce significantly enhances user experience by making the shopping journey seamless and tailored to user preferences. Mobile-optimised sites and apps prioritise intuitive design, making it easier for users to browse, discover, and purchase products on the go. 


This is achieved through features like quick load times, simplified navigation, and easily accessible search bars. 


Additionally, modern mobile platforms use machine learning to personalise user interactions. Potential customers get unique product recommendations based on their browsing patterns and purchase history. 


And as generative AI gets even better, these platforms will be able to integrate with a conversational AI platform like Dialpad to deliver even better customer support. 


This results in a pleasant customer experience, increased engagement, and more sales. 


Speaking of sales…


3. Increased sales

Mobile commerce increases sales in different ways.
 

For starters, the personalised experiences make it easier for customers to find their desired products. This increases sales by eliminating the friction of browsing through extensive product catalogs.


M-commerce also allows you to reach customers where they are at any time. This is really crucial as it helps you convert the leads while they’re still hot. It facilitates spontaneous shopping, allowing customers to complete purchases while on the go.


Another way mobile commerce increases sales revenue is through real-time notifications. An effective mobile commerce strategy lets you send push notifications and showcase in-app promotions. This results in more effective sales campaigns as more users can see your offers as soon as they go live.


4. Geolocation services

Geolocation services help mCommerce businesses deliver personalised experiences based on their location. The services use GPS, Wi-Fi, or cell tower data to send businesses localised content like local event reminders and custom deals.


Geolocation will also help improve your business’s targeted ad campaigns. You’ll be able to create more effective ad creatives and promotions when you know where your target audience is located and the unique traits of that location.


Mobile commerce is quickly becoming a necessity for all modern businesses. But there are different types of mCommerce. So, let’s discuss that next.


Types of mobile commerce

Mobile commerce can be broken down into three main layers:


1. Mobile shopping

Mobile shopping covers the platforms where customers can discover, interact with, and purchase products. Several platforms can fall under this category.
 

The first one is a mobile-optimised website. This is an eCommerce website that has been optimised for mobile devices. It allows users to easily browse different products, add them to a cart, and complete the checkout process.


Some eCommerce websites find it easier to deliver an optimised mobile commerce experience via applications, as opposed to a website. So, mobile apps are the second platform that facilitates mobile shopping. 
 

A mobile application can provide new functionalities that are harder to access through a traditional website. For example, it may help shoppers use their camera and microphone to search for products or even try them on sale virtually. 
 

These extra functionalities result in a more immersive shopping experience. 


Social media is the last platform that supports mobile shopping. The top social platforms rolled out eCommerce features that allow users to discover, browse, and purchase products within the platforms. 


For example, TikTok Shop and Shops on Facebook allow businesses to create shoppable posts by integrating their product catalogs.

 

Source
 

This is a great example of making your products available to customers where they are. 


2. Mobile banking

Mobile banking enhances the mobile shopping experience by helping customers access their finances and complete payments within their mobile devices. Users can transfer funds, approve payments, access loan products, and more from within mobile banking applications.

 

3. Mobile payments

Mobile payments encompass digital transactions facilitated through a mobile device. They streamline the purchasing process by allowing users to pay for goods and services with a few taps on their mobile phones or tablets. 


Mobile payment solutions used for mobile shopping can be classified into two primary categories:

  • Mobile WalletsApplications like Apple Pay, Google Pay, and Samsung Pay let users store payment information securely on their devices. Users can then use these wallets to complete online purchases without physical cards.
  • Peer-to-Peer (P2P) Payment Apps – P2P apps, like Venmo and Cash App, allow individuals to transfer funds directly to each other’s accounts. This form of payment is popular for personal transactions, like splitting bills, and is also useful for small businesses or freelance transactions. Most P2P apps integrate with banking systems, making it easy for users to link their bank accounts or cards.

 

Mobile payments have been an integral part of the mobile commerce ecosystem. They provide convenience to users and facilitate faster checkout processes. 

 

How to implement mobile commerce in your business

You now understand just how important mobile commerce is. So, here’s how to incorporate mCommerce into your business:


1. Optimise your website for mobile

As more consumers shift to smartphones and tablets for shopping, having a mobile-friendly site is crucial for enhancing the user experience and increasing conversion rates. 
 

Start by ensuring your website employs a responsive design that adapts seamlessly to various screen sizes. This approach allows for a consistent shopping experience, making it easier for customers to browse and make purchases on their devices. 


Next, streamline your navigation using clear, concise menus and touch-friendly buttons (especially for the CTAs). Use a hamburger menu to house links to your website's product pages and other essential pages. 


You should also write optimised product descriptions and provide a search option for users who want to find specific products. Use AI templates to help you write effective product descriptions.


Another important factor is page load time. Research by Google indicates that 53% of mobile users abandon sites that take longer than three seconds to load​. 


So, make sure your website loads fast. You can do this by:

  • Using a fast web hosting provider
  • Leveraging CDNs
  • Compressing images or using lazy loading
  • Optimising your site’s code


Some conversion rate optimisation (CRO) best practices can also help with enhancing the usability of your website and the customer experience. 


For example, streamline the checkout process by making sure it doesn’t have any unnecessary steps. You can also allow customers to check out as guests instead of forcing them to create an account. 


Moreover, make sure your website saves the customer’s shipping address and payment details to enhance the checkout process. 


Regularly track your website performance with GA4 (Google Analytics 4) and test it periodically to ensure it remains mobile-optimised.


2. Develop a mobile app

Creating a mobile app is your best shot at delivering the most personalised user experience to your customers.
 

A trend you may have noticed recently is that people are spending increasingly more time on mobile applications than on websites. 
 

Think about it. 
 

How much time do you spend on your email, instant messaging, and social media apps? And how much time do you spend on a website? 
 

In addition to that, mobile applications allow you to deliver an immersive experience. This becomes extremely important for eCommerce brands selling furniture, clothes, and other similar items.
 

By incorporating features like Augmented Reality (AR), your app can let customers use their camera to try on the products before placing a purchase. This enhances their decision-making process and can be instrumental in preventing buyer’s remorse and product returns. 


That’s what IKEA does with their Place mobile app.

 

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Ikea Place Mobile App Example
Ikea-place-mobile-app-mobile-commerce-blog.png

Source
 

Consult a reputable mobile app developer and create a unique application focusing on an intuitive user interface. Incorporate features like in-app purchases, push notifications, wish lists, and social sharing options to boost user engagement.
 

Finally, promote the app extensively to accelerate its adoption. You may also want to offer special discounts for people who download or purchase via the app. 
 

3. Implement mobile payment solutions

A great mobile app won’t do much without an equally seamless payment option. That’s why your app must accommodate mobile payment solutions.
 

The best approach here is to provide several payment options to ensure users can checkout with the most convenient option. You may want to do some audience research to identify the most popular payment options among your target audience.
 

That said, PayPal, Apple Pay, and Google Pay are the most common mobile payment solutions. These platforms not only provide secure transactions but also allow for quick checkouts to enhance the overall user experience. 


Ensure that your payment system supports various methods, including credit/debit cards, digital wallets, and even cryptocurrency options, to cater to diverse consumer preferences.


Security is also critical. You don’t want your customers falling victim to online fraud, do you?

 

 

Demonstrate to your users the security measures you’ve taken to ensure their credit card and other payment details are safe and secure with your app. 


4. Leverage mobile marketing strategies

You’ve already set up your business for mobile commerce at this point. It’s now time to make sure your audience is aware of it. 
 

The first step is to optimise your push notifications. Push notifications are a powerful tool in a mobile app. But don’t just send generalised notifications. 


Send tailored push notifications based on user behavior and preferences to increase relevance. You must also send them at optimal times to avoid intrusion—this requires running A/B tests to determine what times work best with your audience. 


Ask your users to enable notifications by explaining the value behind them. And then send personalised notifications, like tailored product recommendations, to encourage users to return to the app.

 

 

SMS marketing is another mobile marketing strategy you should leverage. SMS campaigns have an impressive 98% open rate, and with targeted messages, you can drive immediate traffic to your app or website. 


Use SMS to send personalised offers, abandoned cart reminders, or flash sales. Make sure your messages are brief and include clear calls to action.


Additionally, social media ads can drive mobile traffic by promoting products where users spend most of their time. Platforms like Instagram and TikTok support shoppable posts that allow users to browse and buy without leaving the app, creating a seamless mobile commerce experience.


Promotional activities don’t end online. You can also promote links to your app or website through a digital business card, which you can share during in-person interactions like networking events. This will ensure that potential customers have an easier time accessing your online store even as you build your virtual address book and share contacts with them.


Finally, make use of location-based marketing. Geofencing and localised ads allow you to target customers with region-specific promotions. This can be especially effective for brick-and-mortar stores looking to integrate mobile commerce with in-store experiences.


5. Analyse and optimise

Track key performance metrics like conversion rates, bounce rates, and average order values both on your app and the mobile-optimised website. This data will highlight which areas of the mobile shopping journey work well and which need adjustments.
 

Use analytics tools like Google Analytics 4 for mobile sites and Mixpanel for apps to analyse user behaviour. Check how users navigate, where they drop off, and which features keep them engaged. 
 

For instance, if data shows a high drop-off rate at checkout, investigate the situation to determine whether you need to simplify the payment process, offer more payment options, or reassure users of their payment information’s safety.
 

You also want to conduct A/B testing on elements like call-to-action buttons, page layouts, and promotional banners. Even small changes can make a big impact on user engagement and conversions. Analysing these test results will help you determine what resonates best with your audience.
 

Lastly, collect customer feedback through in-app surveys or post-purchase follow-ups. Direct input from users provides invaluable insights into their experiences and pain points. Optimise your app and website continuously based on these insights to keep your customers delighted. 


Conclusion

Increased accessibility to the internet and smartphones has created a rising wave of mobile commerce. And with social platforms like TikTok and Facebook pushing users to complete transactions without leaving their platforms, this wave will only get bigger.

 

To keep up, businesses need more than just a mobile-friendly website—they need the right infrastructure to support smooth mobile-first experiences. Planet helps power this shift with integrated payment solutions for fast, secure checkouts, a robust Order Management System (OMS) for smooth cross-channel fulfilment, and multi-currency support to serve global customers effortlessly.

 

By building on the guidance in this article and combining it with Planet’s expertise in integrated commerce, your business won’t just keep up with the mobile shift—it’ll lead it.

 


FAQs

What is the difference between M-commerce and eCommerce?

M-commerce is a branch of eCommerce that focuses on shopping and transactions made specifically through mobile devices like smartphones and tablets, while eCommerce encompasses all online shopping on any internet-connected device.
 

What are the challenges and drawbacks of mobile commerce?

The most significant challenges of mobile commerce are limited screen space, which can affect product displays and user navigation, and privacy and security issues since mobile devices are more vulnerable to theft and cyber threats.

 
Developing optimised mobile apps and ensuring consistent performance on mobile networks can also be resource-intensive.


What does the future of mobile commerce look like?

The future of mobile commerce will likely feature greater personalisation and immersive experiences through technologies like machine learning and augmented reality. The integration of voice commands and conversational AI platforms will also likely transform mobile shopping experiences in the future. 
 

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