10 reasons why Mobile Commerce in India may get bigger than Online Commerce

Posted: April 12, 2014 in Blogger, Digital Marketing, E-Commerce, Mobile App Development, Web Development

E-Commerce is one of the fastest booming industries in India, and mCommerce is following its lead. Already M-commerce has become the most popular in USA, Canada and Most of the foreign countries. With both big and small online businesses developing mobile websites and apps, it is apparent that even they have realized how outstanding this platform is. In our country there are over 930 Million mobile subscribers against 160 Million Internet users, which Includes 86 Million mobile Internet users. It is quite possible for mCommerce to become even bigger than e-commerce, because of the reasons given below:-


Affordability of mobile Phones

There is no deny fact that mobile device like cellular phones and tablets are far more affordable than desktops and laptops, and an average Indian consumer doesn’t have much disposable income in his hand to buy high end devices. Plus, one doesn’t even really need expensive smart phones to shop online or make mobile transactions. Moreover, due to their mobility and affordability, even tablets are high in demand in India.

Doing things on the go

Mobile phones give the freedom to do things like shopping, booking tickets, making hotel reservations, search information online and etc. In India the young consumer are so high, who want fast instantaneous processes on the move. One doesn’t need to wait to reach home or to a cyber cafe to pay bills or make an urgent purchase online.

Mobile Internet

M-Commerce customers are not bound by limited wired and WiFi Internet connections. In the last 3-4 years, the number of users who access the Internet through a 3G/2G connection has grown to round 22 Millions. Now compare this with the 15 Millions fixed lines broadband connections accrued over the last 17 years, there is a notable difference. Even though eCommerce has spread its roots throughout the country, it still hasn’t reached the places where people have no broadband or no computer. mCommerce could and will change this.

Mobile Payments

Mobile Payments is a new mode of payment as an alternative to traditional methods like cash, cheque credit cards etc. A customer can use a mobile phone to transfer money or to pay for goods and services. A mobile payment could be made by an app, data connection, IVR and even SMS, so anyone who has a bank account can make a transaction. This could aid in reducing cash-dependencies of people, particularly in rural India. For ex. Using Airtel Money you can shop online.


Mobile platforms are still relatively free from viruses and other threats. And even in case of a fraudulent activity, credit tracking by GSM/GPRS/GPS is easy and quick. Thus increasing the credibility, and giving better assurance to the sceptical India population. Also, seldom do people part from their phones, so there are less chances of misuse of login information that may happen on computer systems.

Great target audience for advertisements

The problem with online advertising is that people have to be ‘online’ to view it. Several eCommerce players in India have come out with TV commercials to advertise their websites. However, mobile is a better platform to do the same. Even with Government’s regulation on bulk messaging, companies could still target a mass of people collectively by sending promotional content via SMS if a user hasn’t activated the DND service or wants to receive those ads.

Low tariffs-High revenue

Mobile data tariffs in India are the cheapest in the world. Unlike PC Internet affordability of 3G connectivity has improved significantly. Such low rates will encourage people to use more of Mobile Internet, and eventually engage into mCommerce as well. Considering the large mobile user base in India, the government could work with mobile companies to increase the overall revenue, by increasing ARPU (Average revenue per user)


In a true sense Personal Computers are not really personal. Desktops and even laptops are shared by multiple people living in the same family or working together in an office. However the same isn’t true in case of cell phones. Whichever strata of the society a person may belong to, a phone has become an indispensable extension of oneself. People are more comfortable using their phones for various activities, as it gives them a sense of privacy and security, while offering easy usability. Since already there is way more mobiles in India than computers, mCommerce could gradually grow bigger than eCommerce.


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