In this article you will find
What is mobile commerce?
Different uses/ applications of mobile commerce
Advantages and disadvantages of mobile commerce
Security issues in mCommerce
Key features any mCommerce shop should have
Mobile commerce in the UK (stats)
Mobile commerce offers convenience and flexibility for consumers, as it enables them to purchase whatever they need wherever they are, as long as they’re connected to the internet.
Some people refer to mCommerce as “the next big thing”. This couldn’t be further from the truth; mobile commerce is the evolution of eCommerce and it’s been steadily growing. As long as people continue to use their mobile phones to access the internet, the possibilities are endless for eCommerce businesses who are targeting mobile shoppers.
If you’re a merchant selling online goods or services, mCommerce should be a top priority for a number of reasons. In this article, we take a deep dive into everything you need to know about mobile commerce.
What is mobile commerce?
Mobile commerce, also known as mCommerce is any transaction performed using wireless handheld devices. In other words, mCommerce allows users to access their online shopping platforms of choice without having to use their desktop or laptop. While mCommerce is commonly linked with online shopping, it also affects several other industries, including areas `like:
Financial services, such as mobile banking and mobile payments in general
Online subscription-based services with industries varying from retail (e.g. Amazon) to digital content delivery (e.g. Netflix)
Marketing services such as location-based services (e.g. push notifications for mCommerce app, loyalty cards and coupons).
Different uses/ applications of mobile commerce
mCommerce covers a variety of transactions, which can all fall under the following applications:
Mobile shopping
Mobile shopping allows customers to purchase a product from a handheld mobile device. This application not only includes mobile-first webshops but also dedicated mobile applications (e.g. ASOS) and social media platforms (e.g. Instagram).
Mobile banking
Mobile banking is a service provided by commercial banks to consumers, allowing them to conduct financial transactions, with mobile transfers being the most popular choice. Usually, banks build dedicated mobile apps where consumers can access their accounts. There are several mobile-first banks with no brick-and-mortar locations, where consumers communicate with bank representatives via chatbots or messaging apps.
Mobile payments
Mobile payments involve any transaction initiated with a handheld device. There are many diverse mobile payment options which we’ve covered fully in this article.
As a business owner looking to optimise their mCommerce website, your main focus should be offering the best mobile shopping and payments experience for your customers.
Advantages and disadvantages of mobile commerce
As for any other aspect of a business, there are both advantages and disadvantages to mobile commerce. When business owners are fully aware of the pros and cons, the advantages could potentially outweigh any pitfalls.
Pros
Provides the best shopping experience for your customers
eCommerce has provided customers throughout the globe with convenience and flexibility to shop whenever they want, without having to visit physical stores and wait in long queues. mCommerce builds on that and gives shoppers the gift of shopping whenever and wherever; from the comfort of their bed, during their morning commute or on their lunch break, the occasions and opportunities for merchants are endless. mCommerce innovators amplify the customer experience even more by leveraging the latest tech. For instance, IKEA allows users to see how their furniture of choice would fit in their house with Augmented Reality.
Simplifies your ERP
ERP (short for Enterprise Resource Planning) is a type of software that enables integrated management of main business processes such as accounting, procurement and supply management. By offering a single division for your mCommerce business can help you better serve your customers and reduce your data maintenance burden, while being on top of your stock and supply chain.
Personalisation to the maximum
Mobile traffic gives us great insight into individual preferences and shopping patterns. Users’ geo-location, interests, items viewed or added to cart, social media activity can all be tracked and used to provide tailored content that gives more value to your customer. On top of that, if you’re offering a mobile shopping app, push notifications with alerts for discounts, offers, new products and rewards connect you directly with your customers.
Cons
Need for constant tests and optimisation
There is no silver bullet with eCommerce, and mCommerce is no exception. Mobile shoppers are easily repelled by tiny fonts, unresponsive pages and unfriendly experiences on their mobile. You will need to stay ahead of the game for advancements in technology and constantly test mobile optimisation to offer the best possible experience to your customers.
Different payment methods across territories
We all like variety in a menu but always ask for the best sellers. This translates into offering the local payment method preferred in the territory your customers are situated in. For instance, Dutch consumers use iDeal, whereas Germans prefer giropay and the Nordics pay with Trustly. There’s no point in offering a payment method that’s not popular in a certain territory. Your payment service provider should be able to advise on local payment methods and adoption across territories, so make sure to consult with them first.
Compliance to different regulations
Compliance is a challenge for both eCommerce and mCommerce. Many e-retailers have addressed the issue of complying to various tax laws by only selling and shipping to certain territories. This practice sets limits on your business growth and market size. A smart option would be to sell your products on Amazon, so while your mCommerce store only sells and ships to one location, you could cater to more locations via your Amazon store. Shopping carts like Shopify and WooCommerce offer simple integrations with Amazon for merchants meeting certain requirements.
Security issues in mCommerce
As with any other type of online transactions, mCommerce is not entirely free from security issues. Consumers share their sensitive card details with you when shopping online and you must go out of your way to make sure they’re passed on to your payment gateway securely. Working with a trusted payment service provider who will capture the payment data and tokenise it so it’s safely passed on to your payment gateway. By not storing payment data, you won’t have to be burdened with PCI DSS compliance; leave this matter to your payment solution partner. Your payment service provider should also have in place sophisticated fraud screening tools and customer authentication tools such as 3D Secure 2. emerchantpay is a PCI level 1 certified full-service payment solutions provider for eCommerce and mCommerce.
Key features any mCommerce shop should have
There are certain features that successful mobile commerce apps should have to increase sales and conversion rates. If you have a mobile shopping app, you need to ensure these features live within your app.
Loading time
Page speed is one of the most important factors for successful mCommerce businesses. Google started using a mobile-first index in 2018 and has been encouraging web developers to optimise their websites for mobile. If your webshop page speed is optimised for mobile, chances are that it will show up higher in search results. A 2017 study from Google showed that the probability of bounce increases dramatically when the mobile page speed is slow.
Mobile-first design
A mobile-first design means that you’d start prototyping the smallest screen first and then optimise for larger devices. Essentially, it’s about delivering the best user experience to the right device. From this mobile version, you can create or adapt existing codes and content to tablets and desktop devices. The most important aspect of mobile-first websites is to make the user interface (UI) simple and intuitive. Pop-ups, interstitials, small fonts, difficult-to-read colours have no place in mCommerce mobile-first websites.
Mobile payment options
New payment methods emerge every day, and mobile commerce is your chance to shine by offering a variety of payment methods. Adding mobile wallets can help you stand out from the competition and help you increase customer satisfaction. Mobile wallets make it easy for online shoppers to securely store their credit card details, shipping address, and other useful information.
When paying for online transactions they don’t need to enter this information again which can add friction to the customer journey, especially on mobile phones. There are a whole host of digital wallets available throughout the globe, with some of them limited to specific territories. emerchantpay can help you integrate many popular digital wallets, such as Neteller, PayPal and Yandex, among other solutions.
Mobile commerce in the UK (stats)
It’s fair to argue that eCommerce businesses shouldn’t neglect their mobile presence – better yet, invest in mobile-first experiences or shopping apps to ensure integrated experiences across different devices. Consumers are creatures of habit and convenience, and because of mobile device portability, mCommerce has far wider potential than eCommerce.
Here are some key stats about mobile commerce in the UK that highlight how important mobile commerce is:
From the first quarter of 2015 to the first quarter of 2019, 66% of internet users in the UK have reported shopping online via their smart device, as Statista reports.
Salesforce’s Connected Shoppers Report showed that 20% of shoppers in the UK and Ireland use a mobile wallet, 10% use social media, and 2% use messaging apps to make purchases.
The same report revealed that there’s an increasingly digital mindset among consumers, with 46% expecting to make purchases with a shopping app this holiday season.
An analysis of online review platform Feefo highlighted that 53% of UK consumers prefer to use smartphones to browse and shop online over other digital channels such as laptops, desktops and tablets.
Curious to see how you can boost your eCommerce sales and increase your mobile conversions? Reach out to our payment experts who can help you optimise your business’ payment flow and customer journey.
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