Future of Mobile Commerce: Stats & Trends to Know in 2020-2025

“Mobile Commerce is the next big thing.”

I know, many of you would have raised your eyebrows. You might have been thinking that mobile commerce is not a big thing. It’s just a fad that will soon be forgotten or replaced by another.

But believe me, it is NOT so.

The mobile commerce domain is growing by leaps and bounds. The segment is flourishing at such a level that it is nearly impossible for someone to outshine in the market without giving a thought to the future of mobile commerce.

Something we will talk about in this article.

Reasons businesses are investing in mCommerce apps

1.  Wider reach

Nearly 42.63% of the world’s population uses smartphones. Meaning, businesses that have or is planning to enter the mobile commerce domain is able to interact with a wider range of users and enjoy more potential sales leads. They no further have to remain confined to their local premises.

2.  Time-saving

mCommerce applications gives users an escape from traveling to brick-and-mortar stores to buy something. Besides, they enable users to use native mobile functionalities and loads content 1.5 times faster than e-commerce sites. This, as a whole, reduces their efforts and saves time.

This is again one of the prime advantages of mobile commerce.

3.  Quick check-outs

Unlike traditional websites and other solutions, mCommerce apps are designed such that it enables users to place an order with a single tap. This prevents them from abandoning their cart (or even think about it), which eventually blurs the line between getting a sales lead and losing one.

[Also Read: How can M-Commerce Apps Lower their Cart Abandonment Rate? ]

4.  Multiple payment options

mCommerce solutions let users employ multiple mobile wallets and other payment options within the application. This gives users a break from re-entering their card numbers for endless times and exiting the platform on frustrating.

5.  Enhanced customer experience

Almost all the types of mobile commerce applications comes loaded with the power of Predictive Analytics, Augmented Reality, and other such technologies. This makes it easier for businesses to gather user insights, understand their behavior, and provide them with an enhanced mobile shopping experience.

6.  Improved brand reputation

Last but not least, enhanced brand marketing is also one of the benefits of mobile commerce apps.

These applications enables retailers and brand merchandise to build a long-term relationship with their target user base by  localizing the app content, providing discounts/offers, building a push notification strategy, asking for their feedback timely, and much more.

Such benefits are making mCommerce a big hit in the present time. But, the questions that pop out here are –

Will these benefits paint a positive future of mobile commerce also? Will these benefits of mobile commerce encourage establishments to take their business on mobile?

Let’s find out the answers based on some facts and figures.

Statistics forecasting the future of mobile commerce in 2020 & beyond

1.  The mobile commerce revenue is expected to hit $3.56 trillion by the year 2021.

Last year, the mobile commerce revenue generated was $1.8 trillion and this year, it has touched $2.32 trillion (A value that is nearly 2X the one recorded in 2016). And by the year 2021, it will reach $3.56 trillion – with an average y-o-y rate of 33.8%.

This significant rise in the revenue value is a clear indication that the mobile commerce market is not going to stop soon. It will flourish exponentially, making it imperative for retailers and brand merchandise to hire the right mCommerce app development company and plan their mobile journey.

2.  North American and European countries will be big players in mCommerce market revenue in 2020-2024.

As per a survey by Mordor Intelligence, the demographics will vary in terms of mobile commerce revenue and expansion rates.

While North American and European countries will add more profits to the segment, Asia-Pacific and Middle East nations will bring more users into the domain.

3.  By 2021, mCommerce share in e-commerce retail sales in the US will be 53.9%.

In 2017, the share of mobile commerce in e-commerce retail sales in the US region was 35.5%. But, with a steep rise in the usage of smartphones and the growing attraction of millennials towards shopping apps, mCommerce will surpass the e-Commerce, with 53.9% of the total e-commerce market share.

4.  mCommerce market will see new faces in between 2020 and 2025.

Currently, mCommerce market is dominated by global biggies like Google, Mastercard, PayPal, Amazon, Apple, Alibaba, and SAP. But, in the coming years, many new entrants will come into the limelight. They will unleash better opportunities for consumers, establish themselves, and dilute the market to some extent.

5. Mobile wallet market will grow to $5.3 trillion by the end of 2020.

Mobile wallets are offering the facility to store credit card details and shipping addresses securely and process the online purchase without re-entering the information. Because of this functionality, users are showing a great love towards these wallets. A proof of which is that the mobile market size is growing steadily from $1.65 trillion to $5.3 trillion between 2013 and 2020, with a CAGR of 127.5%.