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Mobile commerce in South Africa

In the past decade, the proliferation of smartphones and improvements in mobile technology have revolutionised the way businesses operate. One area of business that has been significantly influenced is mobile commerce, which is the buying and selling of goods and services through mobile devices such as smartphones and tablets.

In South Africa, a large percentage of ecommerce happens on mobile devices – according to recent surveys, almost 70% of online shoppers use smartphones as their primary device for making purchases. With the total revenue of ecommerce set to reach $6 billion by 2025, it’s clear that mobile optimisation is crucial for ecommerce businesses.

Why businesses use mobile commerce

Increased customer base – Launching a mobile app can help businesses broaden their customer base and reach more people.

Improved customer experience – The mobility and convenience afforded by mobile commerce means that customers can browse goods and services, place orders, and more, anytime, anywhere.

Effective marketing – There are several reasons why mobile apps make good marketing tools. For example, push notifications can be sent directly to a user’s device, and customer data can be collected and used to provide personalised advertisements and deals.

Streamlined payments – Mobile payment solutions provide a secure and convenient way for customers to pay for their purchases and earn loyalty points.

Sustainability – Digital catalogues and payments not only provide convenience but also help reduce paper waste, aligning with the global push towards more sustainable business practices.

Competitive advantage – As mobile commerce continues to grow, businesses not adapting to this trend risk falling behind their competitors. Embracing mobile commerce offers a way to stay competitive in an increasingly digital marketplace.

Real world examples

Takealot – Launched in 2011, Takealot is one of South Africa’s leading ecommerce companies. Their mobile app makes it easier for customers to browse and purchase a wide range of products.

Checkers – As the largest supermarket retailer in South Africa, Checkers has tapped into mobile commerce with its mobile app, allowing customers to order groceries from their smartphones. The app also features personalised product recommendations, special deals and digital coupons, creating a more engaging shopping experience

First National Bank – FNB has been a pioneer in mobile banking and commerce. Through FNB’s app, customers can conveniently and securely manage their bank accounts, make payments, transfer funds, apply for new products and purchase prepaid products like airtime, data and electricity.

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