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M-Commerce: Applications, Advantages and Disadvantages

  • Riya Kumari
  • Oct 02, 2020
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A very popular term nowadays, M-commerce or Mobile commerce basically means conducting online activities like buying and selling of goods and services, doing transactions, paying several bills etc. You can not use your laptop or PC everywhere but yes you can use your mobile phones easily. You can do online shopping while travelling, transfer money easily with the help of mobile phones. Thus, this wireless solution is very much helpful and rising day by day. The quick development of mobile commerce has been driven by various elements, comprising expanded wireless handheld gadget registering power, an expansion of m-trade applications, and the wide goal of security issues.


"e-Commerce makes it easy to spend money. Netiquette makes you aware of hidden fees" - David Chiles


So, let's move towards the detail part and this blog will make you familiar with this famous term which may be new for you. But, don't worry you will get to know in detail about M-commerce, its types, advantages, disadvantages, latest updates, and many more kinds of stuff.


What exactly is M-commerce?


Mobile commerce means doing commercial transactions online like online banking, paying bills, purchasing something with the help of wireless devices like mobile phones or tablets. It is a very similar term to E-commerce. The only difference is that users do not require a laptop or PC for this purpose. They can use portable devices like smartphones and tablets. This way, users can access online shopping sites as well as other online services anywhere and anytime.


By using M-commerce, a customer can get a huge variety of products delivered to their doorstep. They even get several discounts and offers. Also, a wide range of payment modes like UPI, Debit Card, Credit Card, Cash On Delivery makes it easier and more convenient for the users.


Now, talking about its type, it includes three types. First is Mobile Shopping which means online shopping can be easily done through smartphones by using online shopping websites and apps. Next is Mobile Banking, which means the transfer of money has become very easy. By using banking apps like Google Pay, Paytm etc, users can send or receive money anytime without the trouble of visiting the bank or an ATM. The last type is Mobile Payments, which means several bills like electricity bills, phone bills, TV cable bills etc, can be easily paid through smartphones.



What are the top applications of M-commerce?


Let's have a glance at the top ten applications of M-commerce. You will definitely get amazed after seeing how mobile commerce functions and the importance of mobile phones.


  • M-commerce and mobile marketing- Business organizations can advertise their products and offers by sending SMS to consumers. Also, they can give reward points to customers to increase their sales.

  • For finance- People who use mobile phones can make transactions easily from anywhere. Even if they have to make a payment of something, they can easily do so and will also receive a receipt regarding the payment.

  • For retail and after-sale services- Customers can view a product online to know its price and details. Also, they can buy products or can even ask for service online.

  • Hotel reservations- Hotel rooms can be booked online through smartphones, making it more convenient for the user.

  • Healthcare and Medicine- Apart from ordering medical supplies online, patients can send their health status to their doctors and get help, making it easier for old age people.

  • For intraoffice communication- Salespeople often need to check the latest prices and offers on the company's products while they may not be in office. They can access all the information easily through their smartphones.

  • For gaming- Online games are becoming very popular these days. The multiplayer games can be easily accessed by smartphones.

  • For information- People can check the news, cricket scores etc. Also, students can check their university exam results easily.

  • Mobile entertainment- Users can access thousands of tv shows, web series, and movies, all through their portable mobile devices.

  • Mobile Ticketing- Tickets of flights or trains can be booked online, without the hassle of going and standing in a queue only through your mobile phones.


What are the Latest Updates related to M-commerce?


There is no doubt that in the coming years’ mobile commerce will drive to the peak. People prefer to buy things online, even though there are people who are addicted to online shopping. In the year 2019, 57% of US customers used a mobile retail application to understand extra about a commodity. According to the report, over the last few months, 79% of mobile users with their mobile phones do an online purchase.


Moreover, there are expectations that by 2021, mobile Commerce sales will account for 54% of total eCommerce sales. The AR(Augmented reality) and the VR (Virtual Reality) industry is predicted to reach $35 billion by 2025. Hence, these are some of the updates related to mobile commerce and we can clearly see that in the future it will reach a more advanced level.

This image is showing the predicted market size of VR/AR software for different use cases in 2025. The source of the image is Statista.

The expected market size of VR/AR software for different use cases in 2025, Source: Statista


Advantages of M-commerce


As you all know that everything has advantages as well as disadvantages. So, let's catch a glimpse of some of the advantages of mobile commerce.


  1. It creates a new marketing channel- M-commerce will help you in creating a new marketing channel as you can easily sell your products to end-users. Additionally, for your business m-commerce is very beneficial as you will give all information in your mobile app and users can easily get to know everything in just one click.

  2. It provides easy store access- Mobile commerce makes it simple to find the items accessible in the market by using wireless gadgets. Also, you don't need to go to the store to buy your necessities, instead, you can purchase items online. This will save you time and reduce your efforts.

  3. It results in cost reduction and productivity- M-commerce is cost-effective as you can cut marketing campaign expenses as you can reach your customer sooner with a mobile app. Also, it has reduced the staff workload and has become more effective and productive than before.

  4. It benefits from traditional retail sales- Mobile commerce can encourage you with traditional retail sales. Thus, m-commerce is developing day by day and it will keep on advancing, putting up a better outstanding position in the retail exchanges.


Disadvantages of M-commerce


Now, let's glance at some disadvantages of mobile commerce.


  1. Absence of services in rural areas- In rural areas there is still a dearth of availability of mobile phones and Internet connection. Even there are people who are totally unaware of all these facilities. So, you can think that still, mobile commerce is unknown to several people.

  2. Fraud risks and security concerns- Still there are fraud risks in mobile commerce and there are marketers who are not even prepared to handle it. Also, the security issue is still present and there are people who had a fear of losing their personal information.

  3. Connectivity issue- If your net connection is poor then you will face an issue and also get irritated in m-commerce. The massive obstacle for M-commerce is the internet connection issue.

  4. The habit of people- You must have heard of the people who don't want to come out of their comfort zone or you can say that they are not ready for the change. There are people who deny getting into modern technology and some take too much time in adopting new technologies.





So, in conclusion, we can say that mobile technology has improved the way we live. Nowadays, there is lots of work which we do with the help of mobile phones. Thus, only because of this, mobile commerce has reached this phase. As you have seen above, the expectations of rising M-commerce in the future, its advantages and disadvantages, applications, and every single detail about mobile commerce. So, it will be interesting to observe how and what will be the new facilitating stuff in the coming years.

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