m-Commerce (Mobile Commerce)

The concept behind commerce, simply put, is the act of buying and selling goods or services, and it has been a cornerstone of our socioeconomic growth. In just under a century, we have witnessed the transformation of commerce, from marketplaces to megamalls, and now the World Wide Web. But what is it that drives such constant innovation in the industry?

Convenience, largely attributed to the fact that e-Commerce revolutionised the way businesses operate. By utilising the Internet as a storefront, e-Commerce eliminates the need for expensive brick-and-mortar venues while granting customers 24/7 online shopping access.

Now, although the barrier to entry was significantly lowered for both business owners and customers, there was still room for improvement.

Enter mobile commerce (m-Commerce), defined as any commercial transaction occurring within mobile apps and mobile-friendly websites and, as the name suggests, operating through wireless handheld devices such as smartphones and tablets.

But before we delve deeper into m-Commerce, we need to address the elephant in the room.

Early on, e-Commerce, or "electronic commerce," was a broad term encompassing all commercial transactions happening digitally. However, as time – and consequently digitalisation – progressed, we witnessed an unprecedented surge in smart device adoption, leading to the creation of the e-Commerce subcategory: m-Commerce.

Thus, a redefinition was necessary to distinguish them. Transactions occurring on desktop computers are typically referred to as "e-Commerce," while transactions happening on mobile devices are labelled as "m-Commerce."

The rise of m-Commerce, credited to the current ubiquitous nature of smartphones and tablets, is the leading factor behind the emergence of major players in the m-Commerce market. Let's explore that.

A common misconception about m-Commerce is that it is limited to the retail sphere. Although retail experiences the highest growth, mobile commerce is categorised into three notable areas: mobile shopping, mobile payments, and mobile banking.

• Mobile shopping

  Think: Shopee, Lazada, Zalora.

  Like its predecessor, m-Commerce mobile shopping involves purchasing and selling online. However, instead of a website, it features a robust, feature-packed app/site designed to prioritise mobile users.

• Mobile payments

  Think: GrabPay, Boost, Touch 'n GO.

  Digital wallets (e-Wallets) and mobile payment platforms have become a popular form of payment. This integration with FinTech provides users with a secure and highly convenient way to make purchases.

• Mobile banking

  Think: MAE by Maybank2u, CIMB Clicks, UOB TMRW.

  Mobile banking, distinct from mobile payments, comprises apps developed by banks to provide users with all the usual features of a bank: transferring funds, paying bills, and reviewing accounts online.

As m-Commerce continues to reshape industries in Malaysia and beyond, businesses must adopt the mobile-first mindset and adjust their strategies accordingly. Developing mobile apps that deliver seamless user experiences, optimising mobile-friendly websites, and harnessing the power of data analytics are key steps to thrive in the mobile commerce landscape.