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Mobile commerce: statistics and future projections

There is a saying that what goes up must come down, which means things change. But it seems that doesn’t hold up when it comes to mobile commerce, or is it just a misconception or a fad?

Well, looking at the trend cycle, M-commerce just seems to be growing and growing in popularity, and it’s now being touted as the “next great frontier” for business.

You may be wondering if this uptrend is going to last, or you may not be sure what to make of the uptrends in mobile commerce.

However, we can all believe the statistics because the numbers don’t lie, right?

The continued proliferation of smartphones across industries, coupled with advances in mobile e-commerce technology and improved user experience, continues to drive m-commerce growth at an unprecedented rate.

Mobile Commerce Stats You Need to Know

Some statistics that show how addicted people are to their smartphones include such that 59% of the world’s population has internet access.

Additionally, more than 2.5 billion smartphone users worldwide spend more than 3.5 hours a day on their cell phones – and the user base is expected to grow to 3.8 billion by 2021.

The future potential of this market can be predicted by statistics which show that a staggering $2.3 trillion in e-commerce transactions were made in 2017, with mobile’s share standing at 58.9%, or $1.4 trillion, according to eMarketer estimates.

By 2021, mobile e-commerce could bring in some $3.5 trillion and then account for nearly three-quarters (72.9%) of e-commerce sales, per eMarketer.

Top Mobile Commerce Markets

The market is expected to grow at a compound annual growth rate (CAGR) of 27% by 2020-2025, with Asia-Pacific seeing the fastest growth. Meanwhile, North America and European countries are expected to be the biggest markets for mobile commerce revenue generation in 2020-2024, according to a study attributed to the Harvard Business Review.

China – $0.75 trillion

United States – $0.21 trillion

United Kingdom – $63.8 billion

Japan – $34.5 billion

South Korea – $28.8 billion

Top 10 Mobile Commerce Market Players

PayPal

google

MasterCard

Visa

Gemalto

Ericsson

Amazon

Apple

walmart

SAP

Types of mobile commerce apps

A brief summary of what mobile commerce, or simply m-commerce, refers to is any form of transaction/service performed using a mobile device, such as a smartphone.

Although the scope of mobile commerce covers a wide variety of transactions, it can generally be categorized into three main types:

1. Mobile shopping

Its implementation is quite similar to e-commerce, but it is accessible through a mobile device. Here, there are dedicated apps for each product one wants to buy, with social media platforms allowing in-app purchases or connected to online stores. Amazon and eBay are examples.

2. Mobile banking

Not much different from online banking, although some forms of transactions may be limited or exclusive to mobile devices. It requires a dedicated application to perform transactions.

3. Mobile payment

In this case, digital wallets are installed on mobile phones through an application linked to the customer’s bank account to carry out any transaction when a request is issued. The transaction is completed by entering a password.

Going back to mobile banking statistics, more than 1 billion phone users have used mobile banking, according to research from Juniper Research. In addition, 72% of the UK’s adult population will use a phone app for banking by 2023 and 62% of Europeans will access banking services through a mobile app.

Of the 83% of shoppers who prefer to shop via smartphones, 87% of these consumers are involved in researching products online before buying. And the conversion rate on a mobile app is about 3 times higher than on a mobile website.

mobile-banking-orders-stats.jpg

Scale of mobile payments worldwide

The scale of mobile payments worldwide can be determined by statistics which show that approximately 2.1 billion people are expected to use an e-wallet by 2019, of which more than 66% live in the Asia-Pacific region. The most active age group is millennials with a user base of 35%, according to Braintree’s Global Payments Report 2018.

The use of digital payments continues to grow globally and is changing the way the world does business.

Below is a graphical representation that clearly shows that the payment made by the number of households by scanning a QR code has increased (and is increasing) steadily over time.

The total electronic payment market capitalization is expected to be $3.388 billion by 2022, by Data published by Allied Market Research.

e-payment_total_market_growth.png

M-Commerce and social media integration

The rise of social commerce will be inevitable as marketers use social media platforms to drive traffic to e-commerce websites and thereby increase their sales.

Some of the statistics that prove the rise of social marketers include statistics showing that 85% of all e-commerce purchases for social media platforms are through Facebook.

Meanwhile, stores with a social presence average 32% more sales than stores without a presence, according to Data from Bigcommerce. And 55% of purchases are influenced by social media showing ads related to users’ search history.

Why is M-Commerce so successful?

Mobile commerce has changed the eCommerce industry by bringing a number of key benefits and making it a perfect package for end users.

Some of the benefits are:

1. Accessibility

With a mobile device, users have the ability to purchase their favorite products from anywhere as we are always on the go in today’s lifestyle.

2. International audience

With over 2.5 billion smartphone users worldwide, mobile commerce has a great market to reach more audiences.

3. Easy and fast payments

The checkout process is smooth as they have multiple checkout options where you just have to enter the credentials and it is done with just one click.

4. Better customer experience

Time and effort is reduced because mobile apps load faster, which is not the case when going to an offline store.

5. Social Media

Social media is also a key channel for promotions in the e-commerce industry.

Forecasts for M-Commerce

The future is bright for mobile commerce, which is evident if we look at the predictions:

  • 50% of all e-commerce sales worldwide will be through m-commerce by 2021.
  • Mobile commerce revenue is expected to reach $423.24 billion by 2022.
  • The estimated growth rate is 56.5% of the mobile coupon industry in the coming years.
  • The expected penetration of app users will be 17% by 2023.
  • 53.9% will be the mobile commerce sector’s share of US retail sales by 2021.

forecast_for_m-commerce.png

Future trends in mobile commerce

Some of the future trends that are expected to impact the industry and that you probably shouldn’t miss over the coming year as they become more dominant include:

1. Augmented Reality (AR)

There is only one flaw in e-commerce: customers cannot see and touch the product before buying it.

With the introduction of AR technology, customers can virtually try on products in real time.

2. Voice search and control

Virtual assistants like Google Assistant and Amazon Alexa are changing the trend of online shopping for customers.

3. Multi-channel experience

Multi-channel approaches are about providing consumers with a seamless experience across platforms, channels, and networks.

4. Chatbots

Mobile-integrated live bots are proving to be a game-changer in improving customer services.

5. Image recognition

People will be able to search for items on their mobile using image recognition technology.

6. AI in customer support

7. Personalization and personalization

8. Crypto Payment

Final words on M-commerce and its future (plus infographic)

Mobile commerce will experience a major shift from its current model, with the rise of emerging technologies and trends. This will continue to drive the growth of the sector.

One of the best ways to keep up with the times and innovations is to create a mobile app for your e-commerce website. Vendors will emerge with new growth opportunities for mobile commerce, helping you adapt accordingly and pave the way for the future.

Thus, with the increase in mobile usage, as well as the increase in Internet access for the general public, m-commerce is set to become the backbone of most business transactions.

Make sure your business goals and objectives consider mobile commerce and provide a great user experience so your brand can drive more sales and continue to be successful in the long run.

To learn more, here is an insightful infographic from Magneto IT solutions which offers a visual representation of M-commerce statistics and projections that marketers and brands should know.

future-of-mobile-commerce_-statistics-trends-for-2020-infographic-1.jpg



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