Alternative Data
Jun 16, 2022
M-Commerce Explained: Why Mobile Is Reshaping Retail And Payments
Subscribe to our newsletter
The world is increasingly mobile-dependent. From online shopping to digital wallets, mobile devices have become the primary way people connect, shop, and pay.
Mobile commerce (M-commerce) marks the next phase of e-commerce (electronic commerce) evolution, built on convenience, speed, and personalisation.
In a mobile-first economy, the boundary between browsing and buying is disappearing. Consumers are not waiting to get home to shop; they complete transactions anytime, anywhere.
This blog explains what is mobile commerce, how it differs from traditional e-commerce, its advantages, emerging trends, and what businesses must do to thrive in this mobile-first era.
What Is M-Commerce?
M-commerce refers to any financial transaction completed using a mobile device, such as a smartphone or tablet.
It includes online shopping via apps or mobile sites, digital wallet payments like Apple Pay or Google Pay, peer-to-peer transfers, and even mobile banking.
In simple terms, M-commerce is the ability to buy, sell, and pay using your phone, making commerce truly portable.
Today, nearly every online interaction, from discovery to checkout, can occur on a mobile device, creating a frictionless and personalised experience that drives the growth of M commerce worldwide.
The Growth of M-commerce: A Look at the Numbers
It is no surprise that mobile device usage has surpassed desktop usage globally, whether for commercial or entertainment purposes.
M-commerce has experienced a surge in recent years due to a significant increase in the time consumers spend on mobile devices, an appealing User Interface (UI), and ease of use of an app compared to a website.
Global M-commerce revenue is expected to reach $6.5 trillion by 2025, driven by the rapid adoption of smartphones and digital payment systems.
According to industry estimates, M-commerce will represent nearly 60% of all online retail sales, totalling about $4 trillion worldwide. The Asia-Pacific region continues to lead this shift, with China accounting for over 50% of global e-commerce sales.
As mobile connectivity strengthens and wallet-based transactions grow, emerging markets are rapidly catching up, making M-commerce one of the fastest-expanding segments of the digital economy. (Source: Cropink, 2025)
The reasons for this trend vary. For a start, many countries have overcome technological barriers, the main one being the lack of easy access to Internet connections.
At present (and especially after the pandemic), many markets have evolved into a mobile-first economy, guaranteeing the speed, comfort, and security that users had been looking for.
According to a report published by DataReportal, in Southeast Asia, between 2019 and 2020, 40 million new Internet users were added, representing 75% of the region’s population, most of them mobile-first. Now in 2025, this number is only increasing. For example, between January 2024 and January 2025, the number of internet users increased by 2.4% in Singapore (totalling to 5.61 million internet users) and by 0.3% in Vietnam (totalling to 79.8 million internet users) in January 2025.
Users are also devoting more time online since the pandemic began. For example, Southeast Asia saw an average growth of 10% in time spent on devices.
Due to this increase in the frequency of use, mobile purchases also escalated, especially in the food delivery and grocery industry.
This is paired with increased consumer confidence in online stores. In fact, 40% of consumers have discovered and tried new brands online since COVID-19.
Mobile devices are an essential part of everyday user habits and stand as a dominant tool in shaping the consumer journey.
Today, there are 5.22 billion unique mobile users globally, and 80% of them have an internet connection. M-commerce has the potential to become the main purchase channel and to change the purchasing habits of consumers.
In Southeast Asia, for example, 90% of the population uses mobile devices, and 49% use e-wallets, a new payment method that was unthinkable just a few years prior. Besides, there are 4.2 billion app downloads across Indonesia, Vietnam, and the Philippines, with 24% YoY growth.
According to eMarketer, global mobile-commerce (m-commerce) sales are expected to reach about USD 4.01 trillion in 2025, accounting for roughly 59 % of total retail e-commerce sales.
This is further intensified due to technological improvements offering a better experience through loading speed, a responsive design, an easy checkout process and alternative payment methods.
With the rise of M-commerce, it is becoming increasingly important to have the right technological partners to help run an efficient and secure business.
More and more data is available, which is essential to learn and understand users further, such as providing the best user experience and improving the company's conversion rates.
Credolab’s digital features, obtained from privacy-consented and anonymous metadata, seek to provide practical information about clients and applicants.
Through its technology, Credolab evaluates mobile features almost immediately, providing clients with digital knowledge through the analysis of smartphone metadata.
Leveraging the growth of M commerce, Credolab can provide granular information that helps offer a better service to any customer.
For example, through smartphone digital fingerprints, Credolab can identify client behaviours and interests and interpret contextual information from app downloads (app type, app category, download date and more).
Digital features can also provide intelligence for cybersecurity and investigative teams to detect fraud attempts.
Also, by combining data such as device type, operating systems, language settings and phone models with other information available to Credolab’s client, it is possible to improve traditional segmentation models into buyer personas, uplifting the conversions of marketing campaigns and lowering the cost of acquisition for lenders.
Therefore, it is essential to have technological partners, such as Credolab, to take care of security and provide a personalised service through analysing smartphone metadata without compromising users' privacy or the company’s reputation.
M-Commerce vs E-Commerce: What’s the Difference?
While both involve digital transactions, M-commerce and e-commerce differ in scope, speed, and user experience.
In summary, the difference between M commerce vs E commerce lies in its immediacy and user connection.
According to Forbes, e-commerce and M-commerce both enable buying and selling online, but M-commerce emphasises “on-the-go” transactions using mobile devices, adding immediacy that desktop-based e-commerce lacks.
Types of M-Commerce
Mobile commerce spans multiple activities that go beyond retail shopping. The key types include:
- Mobile Shopping Apps: Allow users to browse, compare, and purchase products directly through apps.
- Mobile Banking: Enables instant money transfers, deposits, and bill payments.
- Mobile Payments: Facilitates contactless transactions through digital wallets and payment gateways.
Together, these functions form a comprehensive ecosystem driving the ongoing growth of M-commerce across industries.
Advantages of M-Commerce
Businesses and consumers alike benefit from the shift toward mobile-first engagement. Below are the top advantages of M commerce that explain its rapid adoption.
- Convenience: Shoppers can buy products or pay bills from anywhere at any time.
- Personalisation: Mobile apps tailor recommendations using behavioural and location data.
- Faster Transactions: One-click payments and stored credentials reduce checkout friction.
- Enhanced Data Collection: Devices generate rich insights into customer preferences.
- Lower Costs for Businesses: Apps reduce physical infrastructure and operational costs.
- Competitive Advantage: Brands offering seamless mobile experiences gain stronger loyalty.
- Global Reach: Mobile connectivity allows companies to access markets beyond borders.
Top M-Commerce Trends for 2025
The next wave of M-commerce innovation will transform how consumers engage with products and payments. The following trends will define the year ahead:
1. AI-Driven Personalisation
Machine learning models now tailor offers, recommendations, and user journeys in real time. As privacy regulations evolve, first-party mobile data, like app usage and device metadata, helps brands personalise responsibly.
2. Frictionless Checkout & One-Tap Payments
Consumers expect instant payments. Wallet integrations like Apple Pay, Google Pay, and PayPal enable single-click transactions, cutting cart abandonment rates and enhancing trust.
3. Expansion of BNPL & Wallet-Based Instalments
Buy Now, Pay Later (BNPL) solutions are reshaping affordability. Integrating BNPL within mobile apps gives users flexibility and improves retention, especially in emerging markets.
4. Privacy-first Measurement & First-party Data
Businesses are shifting to consent-based analytics, using first-party mobile data to deliver personalised experiences while maintaining user privacy and compliance.
5. Mobile Fraud Sophistication & Device Intelligence
Advanced fraud detection now relies on device metadata and behavioural intelligence to identify suspicious activity and protect mobile transactions in real time.
6. Social & Live Commerce
Shoppers can buy directly through social media and live-streaming platforms, merging entertainment with instant purchasing.
7. Augmented Reality (AR) and Immersive Shopping
AR tools let users try products virtually before buying, improving confidence and reducing returns.
8. Super-apps & Integrated Ecosystems
All-in-one mobile platforms combine payments, shopping, messaging, and services for seamless user experiences.
9. Real-time Payments & Instant Settlement
Instant mobile payments enable faster, secure transactions, enhancing convenience for both consumers and businesses.
Business Implications — What Product & Marketing Teams Must Do
Product and marketing teams must:
- Prioritise Mobile Performance: Optimise apps and websites for speed and responsive design.
- Simplify Checkout: Enable wallets, one-tap payments, and local payment methods.
- Leverage Behavioural Data: Use mobile signals to refine personalisation and retention strategies.
- Adopt Mobile-first Measurement: Track funnels, test User Experience (UX) through A/B experiments, and monitor customer lifetime value (CLTV).
Understanding what is the impact of mobile marketing on e-commerce is crucial, as it enhances customer engagement, drives remarketing efforts, and transforms passive browsers into active, purchase-ready buyers.
Navigating the M-Commerce Revolution
M-commerce is not just a passing trend, represents a fundamental behavioural and technological shift. The rise of smartphones, contactless payments, and personalised app ecosystems has permanently altered how consumers shop and pay.
The growth of M-commerce signals more than increased sales; it reflects a new consumer mindset centred on immediacy, connection, and convenience.
For companies, success will depend on creating seamless, data-driven experiences that anticipate needs rather than react to them.
Interested in learning how our products can help you? Request a free demo, or drop us your questions here.
FAQs
What Is a Mobile-First Economy?
A mobile-first economy is one where consumers rely primarily on mobile devices for shopping, banking, and digital interaction.
What Is Mobile-First Commerce?
Mobile-first commerce focuses on designing and optimising transactions specifically for mobile users before desktop platforms.
How Did the Rise of Smartphones Influence E-Commerce?
Smartphones made shopping portable, leading to faster browsing, personalised experiences, and the birth of M-commerce.
What Is the Rise of E-Commerce?
It refers to the global adoption of digital platforms that enable online buying and selling, paving the way for mobile-driven transactions.
What Is the Impact of Mobile Marketing on E-Commerce?
Mobile marketing improves visibility, drives conversions, and personalises outreach, directly boosting engagement and online sales.
Are Mobile Phones Key to Economic Development?
Yes. Mobile access fosters entrepreneurship, enhances financial inclusion, and drives participation in the digital economy.
Related blogs
Subscribe to our newsletter
Join 25,000+ practitioners from risk, fraud and marketing teams discovering behavioural data insights
