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Mobile phones today play a major role in developing countries. Online shopping is today in the palm of our hands. Thanks to these smartphones and the internet. Mobile commerce is not only an option in the ecommerce industry but, it has become a fundamental prerequisite. The majority of the customers are already looking forward to shopping on their mobile phones. Mobile commerce or m-commerce, as it is popularly known, can be defined as the process of fulfilling business operations using mobile phones that are connected throughout the world via the internet. The business operations may range from making online payments, playing online games, buying and selling goods and services, utilizing various software applications, downloading audio or video content, etc. M-commerce is commonly operated using mobile devices such as smartphones, tablets, and such handheld mobile devices. M-commerce is inclusive of both Businesses to Business (B2B) transactions as well as Business to Consumer (B2C) transactions.

The modern ecommerce has reduced the gap between the developed and the developing nations. Online trading plays a crucial role in the development of India along with many other developing countries. The inception of m-commerce has changed the face of ecommerce in India. The number of mobile phone internet users in India was recorded to be the world’s largest population in 2018 with above 483 million users. The same stat is estimated to increase to 500.9 million users by 2023 according to Statista. India has replaced the U.S to become the second-largest market for smartphones. The Indian population has welcomed mobile commerce with both hands wide open. Did you know that according to another report by Statista, about 696.07 million of the Indian population owns a smartphone in 2020? And, it is further expected to increase up to 973.89 million by 2025. These facts are quite justified for our topic for today. In this blog, we will be discussing the scope of mobile commerce in India.

What is M-Commerce and what is its origin?

M-Commerce is a subdivision of Ecommerce, which implies to online shopping on the go using handheld mobile devices. The term m-commerce was first coined by Kevin Duffey in 1997 who was the then CEO of the Global Mobile Commerce Forum. The circle of mobile commerce began with two Coca-Cola selling machines in Finland. The major innovation in this machine compared to the usual ones was that people could pay for the drink using SMS. This feature turned so popular that it laid the foundation for the development of mobile banking in the locality. The first digital products sold via m-commerce channels were mobile ringtones in 1998, also in Finland. However, it took about 2 years for the spread of mobile commerce in the global market. Since 2000, the mobile commerce trend had reached a global scale and it has never slowed down.

What is the Scope of Mobile Commerce in India?

In India, the majority of the people, irrespective of their ages, are using a smartphone. Especially during the coronavirus pandemic, the few people who didn’t use a smartphone probably started using one. From children in their nappies to grannies in their chairs are using a smartphone for multiple reasons. On average, the age group between 25 and 34 are using these smartphones to shop online. The m-commerce niche is to be completely explored and utilized in its full potential and India is actively working in that regard. Following are a few initiatives taken by the Government of India in order to encourage m-commerce:

  1. Unified Payment Interface
  2. GST Implementation
  3. Mobile Wallets
  4. The Digital India Makeover
  5. Startup India
  6. Skill India

Apart from the above-mentioned initiatives, the Prime Minister of the country has quite supported and encouraged digital transactions with the use of mobile banking and e-banking for cashless transactions. One instance for this initiative is the launch of the BHIM app that facilitates digital transactions directly through the banks using UPI.

When we say m-commerce, here we refer to the transaction of goods and services using mobile devices. There have been evidently great impacts in the m-commerce market with the ever-increasing sales of smartphones, not only in India but across the world. In the past few decades, the development of mobile applications has turned out to become a boon for the m-commerce industry.

If we compare the time spent by an individual on a web browser to the time spent on mobile phones, there is a huge difference and that clearly signifies the dominance of mobile apps in the mobile commerce industry. Researches state that mobile apps can boost sales by over 50% for a regular ecommerce business. Moreover, nearly 49.2% are done via mobile devices. With such whooping usage of mobile apps for ecommerce, India can be foreseen to compete with the developing nations in terms of mobile commerce.

What are the benefits of M-Commerce in Business?

Now that you have known the scope of m-commerce in India, you should be well-aware of the benefits of m-commerce for businesses. If you are an entrepreneur or are planning to become one in the ecommerce industry, these benefits are highly beneficial for you to sell online:

Quick Access to Shopping

Answer to this, how many times do you prefer sitting over a desktop to shop online? We believe, the answer would either be zero, or anything nearby. On the other hand, how many times do you take out your mobile phones to do any given task, or even check the time? Well, we guess, you are probably reading this blog, using your mobile phone! There are thousands of online shopping apps on a smart phone, and it is much more convenient to shop from anywhere at any time using a phone than sticking to a fixed spot in front of the computers. The modern life demands for modern solutions. It may not be convenient for people to find the time and stroll along the markets to find a physical shop that sells the products they wish to purchase.

Mobile-ready online shops, on the other hand, can provide priceless opportunities to the busy bees to find everything they need at the comfort of their time and place. There is no need for taking long walks or driving on busy roads. People can comfortably relax in their pajamas while they browse through the products they wish to purchase. The closer the seller is to the customers, the higher are the chances of the customers purchasing from them. Therefore, in order to earn more revenue, the sellers need to be available in the places where their potential customers visit the most.

Advanced Marketing Opportunities

Another significant advantage of m-commerce is that it offers various and unique marketing channels to businesses. There are various technologies in the market today that help businesses reach their prospective customers with ease. Mobile commerce can aid in boosting sales twofold with multiple sales channels including social media platforms, and other mobile applications which is otherwise not possible in traditional ecommerce marketing. Earlier, people had to get a banner printed and put more effort into reaching their customers, which was again geographically constrained. However, with m-commerce, businesses can schedule marketing campaigns across various online selling channels within a few clicks. Thanks to modern technologies and innovations. In fact, there are many ecommerce platforms that offer ready-to-use solutions to reach customers from a single dashboard along using a mobile-friendly approach. One of the best examples for such a platform is Builderfly. It is a complete ecommerce solution that lets businesses establish a powerful online presence by giving the best of both the worlds – ecommerce and m-commerce, in one place, with minimal investments.


Earlier, m-commerce was conceived as a risky idea due to the limitations of smartphones and technologies back then. However, as time and the features of smartphones and technology evolved, all the problems faced were gradually solved with the internet connections becoming widespread and the smartphones becoming bigger and clearer. Today, the scope and benefits of m-commerce offer endless benefits as well as opportunities to businesses of all kinds. Every entrepreneur has to make sure that they do not overlook the potential held by mobile commerce for their businesses. Advancing with the best m-commerce solutions is synonymous with evolving with the current market requirements. If your business is not utilizing the power of mobile commerce yet, it is time you bring the customers who chose your competitors instead of you, back to your store. Check out Builderfly to get an amazing ecommerce as well as m-commerce solution and stay ahead of the trends like a pro.

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