Mobile commerce (or m-commerce) refers to
electronic commerce (EC) transactions that are conducted in a wireless environment, especially
via the Internet.
Like regular EC applications, m-commerce can be transacted via the Internet,
private communication lines, smart cards, and other infrastructures.
M-commerce creates opportunities for businesses to deliver new services to existing customers and to attract new customers.
The development of m-commerce is driven by the following factors:
- Widespread availability of mobile devices: By mid-2013, some 6 billion cell phones were
in use throughout the world. Cell phones are spreading more quickly in the developing
world than the developed world. Experts estimate that within a few years about 70 percent
of cell phones in developed countries will have Internet access. Mobile Internet access in
developing countries will increase rapidly as well. Thus, a mass market has developed for
mobile computing and m-commerce.
- Declining prices: The price of wireless devices is declining and will continue to decline.
- Bandwidth improvement: To properly conduct m-commerce, you need sufficient bandwidth for transmitting text, voice, video, and multimedia. Wi-Fi, 4G cellular technology,
and WiMAX all provide the necessary bandwidth.