Mobile Commerce

and the Growing

Importance of
Mobile-First Design
Mobile commerce: the ability to conduct transactions, such as
purchasing goods or services and making payments, using a mobile
device, such as a smartphone or tablet.

Mobile-first design: an approach to website or application

development that prioritizes designing for mobile devices before
adapting to larger screens, ensuring a user-friendly experience on
smartphones and tablets.
 Future of
Topic Outline Mobile
Payments

Adoption of Mobile M-Commerce

Commerce in South on the African
Africa Continent (Case
Study: Shop
Soko)
Changing Consumer
Behavior and Impact of Mobile
Expectations Commerce on
Businesses

Adoption Factors Importance of

and Challenges of Mobile-First
M-Commerce Design
 Adoption of Mobile Commerce in
South Africa
1 Growth Trends
• Mobile commerce in South Africa is experiencing steady growth.
• Common transactions includes purchasing airtime, money transfers and mobile banking
(Pankomera & van Greunen, 2019).
• From 2017 to 2020, mobile sales as total e-commerce rose from 18% to 27% (Statista,
2022).
2 Market Dynamics
• Consumers prefer mobile transactions for their on-the-go lifestyle and the seamless
experience provided by mobile apps and websites.
• This shift is evident across various sectors, from retail to services, showcasing the broad
acceptance and adoption of m-commerce.
• Integrated payment solutions and convenience factors have made mobile commerce an
integral part of everyday life (Goldstuck, 2021; Slade et al., 2015).

3 Changing Consumer Behavior

• COVID-19 accelerated the adoption of mobile commerce.
• Even as restrictions eased, consumers continued to expect seamless digital interactions.
• Companies that adapted quickly to these changing expectations gained a competitive
edge.
 Adoption Factors and Challenges of M-Commerce
Adoption Factors
• Technical
infrastructure –
electricity & network
coverage
• Social & cultural
influences
• (Bosire & Ntale, 2018; Mwafise &
Stapleton, 2012; Omonedo &
Bocij, 2017; Salia et al, 2011; Van
der Boor et al, 2014).
Adoption Challenges
• Gaps in internet access
across regions and
economic levels hinder
widespread adoption.
• Cybersecurity concerns
and-digital literacy
• Technological hurdles
• (Gillwald et al., 2018; Njenga et
al., 2016)
Opportunities
• Create opportunities for innovative
businesses
• Increasing demand provides fertile
ground for market expansion.
• Widespread availability of mobile
technology
• (Goldstuck, 2018; Njenga et al., 2016).
Importance of Mobile-First Design

1 Mobile Expansion 2 Optimized User 3 Competitive Advantage

Experience
• Increasing mobile • Focus on usability • Essential for
adoption in South and navigation on business due to
Africa (Goldstuck, smaller screens. increase mobile
2021; Njenga et al., • Performance usage
2016). optimization and • Demand
• Major retailers page loading in optimized
adopting mobile times. mobile
apps and • Reduce cart interactions
responsive website abandonment. increased
designs. • Improve SEO • Improves
• Seamless browsing ranking. (Hoober & accessibility and
and purchasing. Berkman, 2019). satisfacation by
tailoring to
devices.
 Impact of Mobile Commerce on Businesses
Businesses
Revenue Growth
➢ Mobile commerce facilitates
market expansion, leading
to increased sales and
revenue.
➢ Takealot.com reported a
38% increase in mobile
sales, contributing to an
overall revenue growth of
22% in 2020.
➢ (Goldstuck, 2021; Statista,
2022).
Customer Engagement
➢ Enables personalized
interactions, fostering
loyalty and repeat business.
➢ Woolworths used mobile
commerce to increase repeat
purchases, resulting in a 15%
increase in customer loyalty
and retention rates.
➢ (Ström et al., 2014).
Data-Driven Insights
➢ Provides valuable consumer
behavior data, allowing for
tailored marketing and product
strategies.
➢ Superbalist optimized product
recommendations using user
interaction data, leading to a 20%
increase in average order value
and a 12% reduction in cart
abandonment rates.
➢ (Goldstuck, 2021; Statista, 2022).
 M-Commerce on the African Continent
Company Description
Shop Soko Kenyan e-commerce
startup connecting
artisans with international
buyers, selling traditional
crafts through a mobile
app (Githinji, 2014).
M-PESA Africa's leading mobile
money service, providing
financial services to over
51 million users across
seven countries, catering
to the unbanked
population (Vodafone,
n.d.).
Impact
Lowering entry barriers for
SMEs and artisans to earn
money, especially
benefiting those without
desktop PCs or fixed-line
internet access (Gitinji,
2014).
Facilitating a range of
transactions, including
money transfers, airtime
top-up, bill payments,
salary receipts, and short-
term loans, enhancing
financial inclusion across
the continent (Hughes &
Lonie, 2007).
 Future of Mobile Payments

M-PESA Expansion Strategic Pivotal Entity

Enhancements
With the increasing With strategic M-PESA's position as a
access to smartphones enhancements and pivotal entity in Africa's
and the internet, M- improved digital literacy evolving mobile
PESA is poised for among consumers, the payments landscape is
further growth, scope for mobile reinforced by its ability
potentially enhancing money's growth in the to facilitate a range of
financial inclusion region is significant. M- transactions, including
across the continent, PESA's expansion into money transfers,
including in South additional services like airtime top-up, bill
Africa. However, the loans and savings payments, salary
integration of mobile underscores its receipts, and short-
money in South Africa influence in stimulating term loans.
faces hurdles from economic activity and
existing financial simplifying financial
systems and transactions.
regulations.
C o nclusio n
Transforming Landscape

Mobile-First Design

Growth Opportunity

Continuous Innovation
Thank You!
Presented by:

•Boitshepo Mphahlale

•Hayden Millard

•Gladys Motsinoni

•Skye Nagel

•Asanda Ntuli

•Toby Versfeld

•Dzivha Mushanganyisi