M Commerce Market - Forecast(2025 - 2031)

Overview

The M-Commerce market size is forecast to reach USD 745.16 billion by 2030, after growing at a CAGR of 7.28% during 2025-2030. The M-commerce market is growing due to widespread smartphone adoption, fast mobile internet, and the rise of secure mobile payment solutions like wallets and M-billing. Consumers demand on-the-go convenience, driving mobile shopping, banking, and subscription services. Retailers are optimizing platforms for mobile use, and governments are supporting cashless economies, boosting adoption. Additionally, mobile commerce bridges the gap for unbanked populations and benefits from advancements in mobile technology and post-pandemic digital trends.

Report Coverage

The report “M-Commerce Market– Forecast (2025-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the M-Commerce market.

Transaction Type: M-Ticketing/M-Booking, M-Banking/M-Retailing, M-Billing, Others.

Payment Mode: NFC, Premium SMS, Wireless Application Protocol, USSD, Others.

User Type: Smart Device Users, Feature Phone Users.

By Geography:  North America, South America, Europe, Asia-Pacific, RoW

Key Takeaways

•    On September 12, 2024, New transit features and a new kind of digital ID for Google Wallet were unveiled. Google Wallet uses Android's sophisticated security, which is private by design, to protect digital IDs. Since ID passes are encrypted, viewing or sharing them requires authentication via a fingerprint, PIN, or passcode. Additionally, adding additional tools to make travel easier, like the ability to import tickets instantly from booking confirmations emailed to Gmail so one can locate them quickly. Soon, one will be able to check the ticket in the Wallet for real-time train status updates, including whether the train is on time or delayed, as well as train tickets for future travels.

•    On October 12, 2021, Ericsson and Mobily collaborated to introduce financial services and offer solutions to Saudi clients. Mobily's new effort supports the Financial Sector Development Program, a component of Vision 2030 that seeks to raise the proportion of cashless payments in Saudi Arabia to 70% by 2030.

•    The statistics from the Chase Digital Banking Attitudes Study 2024, which shows that 78% of users engage with mobile banking apps on a weekly basis, further underscore the transformation within the financial services sector. Mobile banking is now the top choice for millions globally, surpassing traditional banking methods and even web-based platforms. This transition highlights the increasing demand for digital and mobile-first financial solutions, with more consumers relying on their smartphones for everyday transactions, from checking balances to transferring funds. With M-Banking and M-Retailing leading the charge in M-Commerce, the ongoing adoption of mobile solutions promises continued growth in both the financial and retail sectors, further driving the market's evolution.

By Transaction- Segment Analysis

M-Banking/M-Retailing dominated the M-Commerce market in 2024. driven by the increasing availability of mobile internet, and evolving consumer preferences for convenience and digital services. M-Banking provides 24/7 access to financial services like balance checking, transfers, payments, loan applications, and bill payments, which appeals to tech-savvy and busy consumers. In many developing countries, mobile banking is an important tool for financial inclusion. Many people in rural areas who lack access to traditional banking can use their phones for transactions, savings, and loans via mobile banking services. For instance, according to the Press Information Bureau, digital payments in India are expected to reach 13,462 crore transactions in 2023, up from 2,071 crore in 2018.

Features such as push notifications, personalized deals, location-based promotions, and one-click purchases are driving mobile retailing growth. These features make it easier for consumers to shop on the go and stay engaged with brands. Therefore, the ongoing trend of digital transformation across industries will continue to shape the future of m-banking/m-retailing.

By Payment Mode- Segment Analysis

Wireless Application Protocol dominated the M-Commerce market in 2024. Its compatibility with basic mobile devices and minimal data requirements makes it a practical and accessible solution for a wide range of users. WAP payments have gained traction across industries like retail, banking, hospitality, and airlines, where simplicity and reliability are key to customer satisfaction. Services such as PayPal Quick Checkout exemplify how WAP-based payment systems are integrated into global M-Commerce platforms, enabling seamless transactions without requiring sophisticated devices or high-speed internet access.

The growing adoption of WAP payments is also closely linked to the expansion of mobile applications catering to diverse sectors. For instance, ticketing apps for movies, events, concerts, and sports have become increasingly popular, offering users detailed information on events, locations, performance schedules, and even the ability to resell tickets.

By User- Segment Analysis

Smart Device Users dominated the M-Commerce market in 2024. The increasing number of smart device users globally has led to a surge in M-Commerce activities, with users relying on these devices for shopping, payments, and accessing various services.
The Global System for Mobile Communications Association (GSMA) says almost 4.3 billion people have access to smartphones, accounting for 53%of the global population who have access to the internet at the end of 2023. Also, almost 80 percent of mobile internet subscribers globally access the internet on a 4G or 5G smartphone. With projections to grow further in emerging markets, this high penetration makes smartphones the primary tool for accessing M-Commerce platforms. The growing adoption of mobile apps with personalized, easy-to-navigate interfaces and integrated payment systems has made shopping on smart devices more convenient. For example. apps like Amazon and Shopee offer streamlined, user-friendly platforms, enhancing the shopping experience and driving M-Commerce usage.

By Geography - Segment Analysis

North America dominated the M-Commerce market in 2024. In North America, the growth of the M-commerce market is fueled by high smartphone penetration, widespread adoption of mobile wallets like Apple Pay and Google Pay, and consumer demand for convenient, on-the-go shopping. Retailers are increasingly investing in mobile-optimized platforms and apps to meet the region's tech-savvy audience. The expansion of subscription services, such as streaming and e-commerce memberships, further drives mobile transactions. Additionally, North America's robust digital infrastructure and emphasis on security innovations like biometric authentication contribute to the rapid adoption of M-commerce solutions.
According to the International Telecommunication Union, 88% of the population aged 10 and over owned a mobile phone in 2022, highlighting the widespread adoption of mobile devices across North America. This high level of mobile phone ownership directly contributes to the growth of the M-Commerce market.

Drivers – M-Commerce Market

•  Advances in Mobile Payment Technologies

Advances in mobile payment technologies, such as NFC and mobile wallets, have made transactions more secure and convenient. The M-Commerce market is expected to grow as consumer preferences increasingly shift to mobile-first interactions and businesses prioritize mobile-friendly platforms. Banking-as-a-service (BaaS) signifies a paradigm shift in the banking business. This trend involves banks and credit unions exchanging data and services with third-party suppliers via Application Programming Interfaces (APIs), resulting in a more integrated financial ecosystem. By incorporating advanced technologies such as biometrics and two-factor authentication, banking apps ensure a high level of security for online transactions, thereby increasing client trust.

According to the Polish Bank Association, Związek Banków Polskich, by the end of the first quarter of 2023, the count of actively engaged Internet banking users reached 23 million, with nearly 89% utilizing mobile banking apps. The number of active mobile banking app users exceeded 20 million, reflecting a growth of more than 15% compared to the first quarter of 2022. Furthermore, the rise of super apps platforms like WeChat, Grab, and Gojek integrate mobile payments with other services, making them one-stop solutions for consumers and fueling M-Commerce growth. For instance, in 2023, WhatsApp rolled out a new feature in India that will allow users in its largest market to pay businesses using a variety of payment options from within the instant messaging app.

•  Widespread Smartphone Adoption and Internet Penetration

The increasing penetration of smartphones globally is a fundamental driver of the M-Commerce market. With billions of users owning internet-enabled devices, mobile commerce platforms have become the primary digital shopping and transaction channel. Smartphones have progressed, with features such as high-quality cameras, increased storage space, and longer battery life. Furthermore, with the emergence of inexpensive smartphones, prices have become more accessible to a larger proportion of the population. Such reasons contribute to the growing global adoption of smartphones. According to Ericsson, the total number of mobile subscriptions globally is likely to reach over 1.6 billion by the end of 2023 and will continue to rise.
By 2025, there will be 328 million smartphone users in North America, according to GSMA. Additionally, it is anticipated that the region will see a rise in mobile users (86%) and Internet penetration rates (80%) by 2025. The growing demand for mobile phones will probably present profitable growth prospects for the M-Commerce market. With more people accessing the internet, particularly via mobile devices, there has been a surge in online shopping and mobile transactions. This trend, coupled with the growing demand for smartphones is expected to drive the M-Commerce market as it continues to cater to an increasingly connected global population.

Challenges – M-Commerce Market

•    Increasing Security Concerns Due to Cybercrimes

Security concerns pose significant challenges to the growth and adoption of the M-Commerce market. These challenges primarily stem from the critical need to ensure secure financial transactions, safeguard sensitive user data, and maintain trust among users.
Despite the convenience of M-Banking apps, users often remain skeptical about their security due to the rising prevalence of cybersecurity threats, cyberattacks, and data breaches. For example, Zimperium’s 2023 Mobile Banking Heists Report uncovered that 29 malware families targeted 1,800 banking applications across 61 countries. 

According to the Cyber Security Report 2020 by the National Technology Security Coalition, in 2020, there was a 50% increase in attacks against smartphones, with mobile banking Trojans being a common threat. Security threats like mobile banking Trojans erode consumer confidence in using M-Commerce platforms for transactions.
A report on the cost of data breaches researched by the Ponemon Institute and published by IBM reveals that the breach of about 29500 records between March 2021 and March 2022 resulted in a 25% increase in the average cost from INR 165 million in 2021 to INR 176 million in 2022. 

Market Landscape

Technology launches and R&D activities are key strategies adopted by players in the M-Commerce market. In 2024, Major players in M-Commerce are American Express, Apple, Google Inc, Visa, Amazon, Paypal, Mastercard, Thales Group (Gemalto NV), IBM Corporation, and SAP SE, among others.

Developments:

• On October 24, 2024, to enhance the checkout process for American retailers using PayPal, Venmo, and Fastlane, PayPal extended its collaboration with Global Payments. The goal of this effort is to improve the shopping experiences of customers and increase conversion rates for companies who use the platform.
• August 31, 2024, On ClickPay QR and UPI Circle are two of the six new features that Google Pay has unveiled. These features—which are anticipated to be released later this year—include Tap & Pay with RuPay cards, UPI Circle on Google Pay, UPI Vouchers (eRupi), ClickPay QR scan for bill payment, prepaid utility payment, and Autopay for UPI Lite.

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