Rise of M-Commerce: Mobile Ecommerce Shopping Stats & Trends in 2021

• M-commerce, or mobile commerce, involves shopping through a mobile device (typically a smartphone), while e-commerce involves shopping online through your computer.
• Insider Intelligence forecasts that m-commerce will reach $284 billion, or 45% of the total U.S. e-commerce market, by the end of 2020.
• In addition to this coverage, Insider Intelligence publishes thousands of research reports, charts, and forecasts on the Payments & Commerce industry. You can learn more about becoming a client here.

E-commerce has been on the rise massively in recent years, but it may not be the next true frontier for shopping as m-commerce continues to become more popular.

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But just what is m-commerce, and how do we compare e-commerce vs. m-commerce? 

Simply put, m-commerce involves shopping through a mobile device (typically a smartphone), while e-commerce involves shopping online through your computer.

And m-commerce is poised to burst into the mainstream thanks to a host of technological advances that are making it easier for users to shop on their phones. Below, we’ve outlined the road ahead for m-commerce growth and detailed some mobile shopping statistics.

Mobile Ecommerce Benefits

M-commerce has the potential to become a major channel for shopping and to change consumer shopping habits. Consumers are reliant on digital devices now more than ever, and Insider Intelligence predicts that mobile will inch closer to becoming consumers’ preferred channel for online shopping within the next five years. 

Social media sites such as Facebook, Twitter, and Pinterest have all introduced “buy buttons” that let shoppers make purchases without having to leave the platform. And many retailers have introduced one-click checkout to their sites. This method requires shoppers to enter their payment information once, and then they can use the one-click option to make purchases without having to re-enter it.

As app usage continues to grow, it will be a major contributor to sales growth, especially with Millennials and Gen Zers holding massive spending power. These tech-savvy users have the ability to boost volume, as they’re more likely to do a wider share of shopping on their smartphones.

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M-Commerce Market Share and Size

M-commerce will rise in the coming years as e-commerce grows to become a larger portion of total U.S. retail sales. In 2019 m-commerce comprised over a quarter of total e-commerce – more than doubling since 2015.

Insider Intelligence used this data to forecast that m-commerce will reach $284 billion, or 45% of the total U.S. e-commerce market, by the end of 2020.

M-Commerce Statistics

Insider Intelligence predicts m-commerce volume to rise at a 25.5% compound annula growth rate (CAGR) from 2019 to hit $488.0 billion, or 44% of e-commerce, in 2024. And there are two key devices driving the m-commerce revolution: smartphones and tablets.

Despite historically suffering poor conversion rates because of customer frustration from having to checkout on a small screen, smartphones have become the driving force behind m-commerce growth. US volume is poised to increase from $128.4 billion in 2019 to $418.9 billion through 2024. 

Tablets, though paling in comparison to smartphone m-commerce volume, are also massively contirnuting to the success of m-commerce. Business Insider Intelligence expects $29 billion to be spent on tablets in 2019, increasing to $69 billion in 2024 — an 18.9% CAGR. 

M-Commerce Examples & Companies

As mobile wallets and contactless credit cards become increasingly popular, tech giants like Google and Apple are making their way to the forefront of the payments space. 

Google Pay

Google recently revamped its Google Pay app for Android and iOS users, and includes checking and savings accounts in partnership with Citi and Stanford Federal Credit Union. The enhanced Google Pay app’s emphasis on money management tools could be a major customer acquisition advantage. 

Amazon Pay

Buy buttons like Amazon Pay have built up user bases over the years. And Amazon Pay could be a precursor to the tech giant’s further moves in financial services, especially as it expands the wallet globally. As a mobile wallet and online buy button, Amazon Pay can be adapted to different markets and allow the firm to establish an audience around a payment tool.

More to Learn

Mobile shopping trends are pointing to m-commerce as the wave of the future for shoppers. But mobile shopping is just one aspect of the broader payments ecosystem.

Interested in learning more? Insider Intelligence publishes thousands of research reports, charts, and forecasts on the Payments & Commerce industry. You can learn more about accessing all of this content here.

And here are two related Payments & Commerce reports that might interest you:

1. The Payments Ecosystem, which traces the path of an in-store card payment from processing to settlement across key stakeholders, forecasts growth, and defines drivers for key digital payment types through 2024.
2. The Online Grocery Report, which forecasts how online grocery’s penetration will grow in the coming quarters and years due to the pandemic, and consider the factors that will determine the industry’s staying power.