UK banks are increasingly launching new mobile banking services as they recognise the growing importance of this channel for connecting with customers and competing in the marketplace. Customers can now receive SMS alerts when unusual activity is suspected, or when they are reaching their credit limit or use mobile banking to keep up to date with their balance and activity.
These new mobile services give customers more control over their finances and help protect their accounts and information. However, although banks are struggling to launch innovative mobile services to keep up with customer expectations and demand, security concerns and lack of trust are affecting adoption rates of mobile banking.
Mobile payments is set to be the next wave in the industry. Portio found there were 480 million mobile payment users across the globe at the end of 2012 and this is predicted to rise to almost 1.5 billion users by 2017. They predict that global mobile payment volumes - goods, services and utility bill payments made through mobile devices each year – will hit $2 trillion by the end of 2017.
Visa Europe also found that UK shoppers are becoming more comfortable with mobile payments as they make 51 million contactless purchases over the last 12 months with monthly spend increasing fivefold from the previous year.
These figures are hardly surprising when you consider the rise of smartphone users. eMarketer estimate that the number of UK smartphone users will reach 30.9 million in 2013 and this is expected to rise to 43.4 million translating to two thirds of people in the UK and 81% of UK mobile phone users.
Consumer trust continues to grow for mobile technologies but there is some distance to cover before consumers completely trust mobile payment technology. An ING study highlighted that 45% of people in the UK are not confident that their money is secure when using contactless payments and this is not just the case in the UK. Many believe that banks are placed in an ideal position when it comes to mobile payments as consumers have a lot of trust in banks already.
Many banks around the globe are already releasing mobile payment services and research by MAPA revealed that banks who do not offer mobile payments are now in the minority. A number of UK banks, thanks to The Payments Council, are also developing a solution to enable banking customers to send and receive money by sharing just their phone number by 2014.The next step would be contactless payment technology to enable shoppers to use their mobile device for purchases, removing the need to carry credit and debit cards.
These figures highlight the potential growth of mobile payments and the opportunities available for banks. Find out more about whether mobile banking security concerns will really hinder adoption rates and learn more about why mobile services is being utilised by banks and finance companies.
These new mobile services give customers more control over their finances and help protect their accounts and information. However, although banks are struggling to launch innovative mobile services to keep up with customer expectations and demand, security concerns and lack of trust are affecting adoption rates of mobile banking.
Mobile payments is set to be the next wave in the industry. Portio found there were 480 million mobile payment users across the globe at the end of 2012 and this is predicted to rise to almost 1.5 billion users by 2017. They predict that global mobile payment volumes - goods, services and utility bill payments made through mobile devices each year – will hit $2 trillion by the end of 2017.
Visa Europe also found that UK shoppers are becoming more comfortable with mobile payments as they make 51 million contactless purchases over the last 12 months with monthly spend increasing fivefold from the previous year.
These figures are hardly surprising when you consider the rise of smartphone users. eMarketer estimate that the number of UK smartphone users will reach 30.9 million in 2013 and this is expected to rise to 43.4 million translating to two thirds of people in the UK and 81% of UK mobile phone users.
Consumer trust continues to grow for mobile technologies but there is some distance to cover before consumers completely trust mobile payment technology. An ING study highlighted that 45% of people in the UK are not confident that their money is secure when using contactless payments and this is not just the case in the UK. Many believe that banks are placed in an ideal position when it comes to mobile payments as consumers have a lot of trust in banks already.
Many banks around the globe are already releasing mobile payment services and research by MAPA revealed that banks who do not offer mobile payments are now in the minority. A number of UK banks, thanks to The Payments Council, are also developing a solution to enable banking customers to send and receive money by sharing just their phone number by 2014.The next step would be contactless payment technology to enable shoppers to use their mobile device for purchases, removing the need to carry credit and debit cards.
These figures highlight the potential growth of mobile payments and the opportunities available for banks. Find out more about whether mobile banking security concerns will really hinder adoption rates and learn more about why mobile services is being utilised by banks and finance companies.
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