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If you follow technology trends, you may be wondering what m-commerce is. After all, this concept has been gaining popularity in Brazil and is becoming increasingly well known.

Although the name may sound unusual, it refers to a practice that thousands of consumers already carry out every day—and it promises to revolutionize the way we interact with e-commerce.

For that reason, it is essential to understand what this transaction format is and how it can be implemented in your company.

Keep reading to check out:

• ● What is m-commerce?
• ● What is the history of m-commerce?
• ● Types of m-commerce
• ● 4 ways to implement m-commerce
• ● Benefits of m-commerce
• ● What is the difference between e-commerce and m-commerce
• ● The m-commerce scenario in Brazil

What is M-commerce?

M-commerce, or mobile commerce, refers to commercial transactions that happen through mobile devices such as smartphones, tablets, and smartwatches.

Its goal is to enable the purchase and sale of goods and services over the internet without the need for a desktop computer.

The popularization of wireless devices made this trend possible, since online transactions became faster and safer.

As a result, several companies started investing in platforms and channels that allow these transactions in apps, phones, and different types of mobile devices.

This trend is present in many everyday practices, although many people don’t know what m-commerce is. Some popular examples are:

• ● shopping apps;
• ● banking apps;
• ● digital wallets.

Since this trend has already gained space among consumers, it is important for companies to pay attention to it.

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What is the history of mobile commerce?

Even though many are discovering what m-commerce is now, this has been a trend for many years.

The term started being used in 1997, created by Kevin Duffey, president of the Global Mobile Commerce Forum, which includes more than 100 organizations gathered with the goal of putting e-commerce resources in the hands of consumers, anywhere.

This technology became a possibility that year when two Coca-Cola vending machines began accepting payments via SMS.

Meanwhile, the first banking apps also emerged in 1997, developed by the Merita Bank of Finland.

The following year, the first sales of digital content directly by mobile phone began. The company Radiolinja, in Finland, started selling ringtones, which could be paid for and downloaded through the phone.

In 2002, based on the work of the Global Mobile Commerce Forum, the European Telecommunications Standards Institute (ETSI) appointed a Motorola developer to start creating official standards for mobile commerce.

Finally, with the launch of the iPhone in 2007, m-commerce moved away from SMS and got closer to real applications, creating the model we know today.

Currently, this market is worth approximately US$800 billion, and Asia represents almost half of the developer companies.

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Types of M-commerce

Some people may associate the concept that defines what m-commerce is with only one activity. However, there are several types of mobile commerce.

Check out some of the main ones below:

Mobile sales

Mobile sales are practices that allow the customer to buy a product using their mobile device connected to the internet.

They don’t need a computer or desktop program to complete the transaction, and can do everything on the phone, from choosing the product to paying.

Mobile banking

Mobile banking is a category that includes online banks designed so customers can access their accounts and carry out financial activities on their phone, such as:

• ● transfers;
• ● bill payments;
• ● investments;
• ● balance checks.

Currently, the most used channel is apps created by the financial institutions themselves, which not only offer integrated banking services but also features such as chatbots and direct communication with attendants through the mobile device.

Mobile payments

Mobile payments are a type of m-commerce that allows users to buy products using only their device.

That is the case for digital wallets such as Apple Pay and Samsung Pay, which enable transactions with stored balance or registered cards using only the smartphone.

In addition, some developers also invest in white-label payment technologies—resources that can be used by other companies to ensure transaction security for their products.

That is the case for X-Apps, a white-label fintech that incorporates financial tools and features into apps.

4 ways to implement mobile commerce

After understanding what m-commerce is, it is worth also understanding some application formats.

See the most popular models users are already getting familiar with:

1. Commerce through the browser

It is possible to implement m-commerce through browsers, even without a desktop computer.

This happens through smartphone browsers, which adapt pages and websites so transactions can be completed on mobile devices.

In this case, it is not necessary to install any app to start enjoying the benefits of mobile commerce.

2. Commerce through an app

Commerce through apps is the best-known form that defines what m-commerce is.

Companies that invest in developing their own mobile platform allow customers to buy within these native systems.

Apps are built with an adapted interface and also have functions that match smartphones, such as the possibility of using the camera, for example.

To use the features, consumers usually register in the platform.

3. Commerce through social networks

A possible use case for m-commerce is commerce through social networks, which allow users to buy inside the app itself.

This option is more recent, but it has already become a trend on platforms such as Instagram and Facebook. The company even developed systems aimed at commerce in social networks to make this integration even easier.

Other alternatives that are being implemented include payment tools in messaging apps, such as WhatsApp.

That way, the user sends and receives money directly from the social network, without needing to install other features.

4. Commerce through mobile devices

In addition, if you want to know what m-commerce is, it’s important to mention commerce through mobile devices.

This is a modern proposal that aims at direct payments from devices such as phones and smartwatches.

It happens with the help of digital wallets and technologies such as NFC, or contactless. That way, users use their mobile devices to buy without needing other resources.

Examples of M-commerce

To understand what m-commerce is in practice, see some of the main examples that stand out in the market today:

Financial and banking services

Platforms for financial and banking services are one of the uses that millions of people take advantage of every day.

These are banking apps that allow sending and receiving transfers directly by phone, as well as paying bills and bank slips.

Most traditional institutions have already developed their apps for customers, such as:

• ● Banco do Brasil;
• ● Bradesco;
• ● Itaú;
• ● Santander.

In addition, the emergence of digital banks—which operate only through the mobile platform—helped consolidate this alternative, including names such as:

• ● Nubank;
• ● Inter;
• ● C6 Bank.

Among the main features is the possibility of paying using only the device, transferring money, reading QR codes, or using contactless with a virtual card.

Goods commerce

Goods commerce is also a common concept in the definition of what m-commerce is. This includes store apps and sales through social networks.

Physical companies develop their own mobile platforms, showcase products, and allow customers to complete the purchase through the system, without having to leave home or even enter the website.

In addition, many use payment functions that make purchases easier without needing to leave the platform.

Services commerce

Like goods commerce, services commerce is also a practical application of m-commerce.

Several apps that help hire professionals became popular, allowing consumers to contact the desired service type to get a physical or digital service.

Buying and selling tickets

M-commerce also brought the buying and selling of electronic tickets for events such as concerts, cinema, and theater.

Consumers no longer need to face lines to guarantee entry, completing everything through the app, including details such as seat selection or even buying food combos.

Then, they just need to pick up the ticket or show the app to enter the event.

Information services

To understand what m-commerce is, it’s worth mentioning its practical use in information services, through news apps and other types of delivery.

Several companies developed location and digital map systems, for example.

With that, the user can get information and make purchases inside information apps, integrating more than one modality in the same mobile system.

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4 benefits of mobile commerce

Beyond knowing what m-commerce is, it’s also interesting to know the benefits this trend can bring to companies.

See why you should consider investing in this technology:

1. Increase in the customer base

Mobile systems are dynamic, versatile, and global. With them, it is possible to reach more people beyond the physical plan.

That way, the company can increase its customer base without being restricted by location, for example.

With apps and sites for mobile browsers, it becomes easier to attract other audiences through your own system.

2. Greater convenience

The massive increase in mobile device use makes m-commerce bring more convenience to consumers and also to the company.

After all, with just a few clicks, it is possible to access all services and physical products, without having to leave home or even access a computer.

3. Sales are faster on mobile

One of the most important points that define what m-commerce is, is the practicality of having all purchase stages in a single place.

With apps, it is possible to complete sales faster—from choosing the product to finishing payment—which doesn’t happen on websites, for example.

The user doesn’t need to be redirected to another tab or fill long forms to get products.

4. Omnichannel strategy

Finally, it’s worth mentioning that m-commerce is an important component of companies’ omnichannel strategy.

If the company seeks to expand its service channels and integrate them successfully, it needs to consider mobile commerce to consolidate interactions in all the main systems possible.

The challenges of mobile commerce

On the other hand, mobile commerce also faces some challenges that must be overcome to ensure full implementation.

For example, building an efficient app requires investments and good features for the user.

Therefore, it is not a viable alternative for all companies at first.

Another point of attention is data security, since it is more complex to build proper encryption certificates for mobile systems.

In addition, it is necessary to seek options that are attractive to the user. Many sites are still not very responsive on mobile, which harms navigation.

What is the difference between M-commerce and E-commerce?

M-commerce is a form of e-commerce, and they are part of the same technology segment.

While e-commerce includes all kinds of transactions made over the internet, mobile commerce is a category that focuses only on operations carried out by mobile devices.

In summary, every m-commerce is an e-commerce, but the opposite is not true.

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Will M-commerce end E-commerce?

No, m-commerce will not end e-commerce.

Even though phone transactions are becoming popular, these concepts are interconnected and will not lead to the exclusion of one or the other.

In addition, it is essential that companies don’t focus only on this modality, but combine mobile commerce with other service strategies.

That way, m-commerce will strengthen the company’s e-commerce instead of harming it.

Mobile commerce in Brazil

To understand what m-commerce is, it’s worth checking Brazilian market behavior.

According to a survey by Panorama Mobile Time in partnership with Opinion Box, published in April 2022, 84% of consumers choose the smartphone, instead of the computer, to make an online purchase.

Hiring financial services increased 32% in the year, while requesting insurance through apps grew 20% between February and March 2022.

This shows that, beyond e-commerce being a strong trend in Brazil, m-commerce is also consolidating as the preferred option among consumers.

Why should you know what m-commerce is?

Understanding what m-commerce is allows you to learn the real impact this technology has been having on the market, and to implement this strategy appropriately in your company.

Many people already use this practice but may not know what it is or how it works. As a result, they fail to take full advantage of its functionalities.

Therefore, understanding this concept is the first step to modernize your business and integrate mobile commerce into your omnichannel strategies—and to know which partners to look for to put your plan into practice.

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