Consumers Ready to Adopt Mobile Banking, Not Mobile P2P
Dove Consulting has announced new research findings, sponsored by PSCU Financial Services, based upon consumer focus groups that "gauged consumer interest in and predicted future use of three major mobile applications: mobile banking (using a mobile device to access banking information), mobile payment at the point-of-sale (using a mobile device to make purchases), and mobile person-to-person payments (using a mobile device to send money to another mobile device)."
The winner? Mobile banking - chosen by two-thirds of participants. Mobile payments at POS was the choice of 30 percent while only a handful said they were excited about mobile person-to-person payments.
According to Chris Allen, a director with Dove Consulting and head of the payments strategy team, these results are in line with the direction the financial services industry is moving. “Given everything financial institutions have done to encourage the adoption of mobile banking, it isn’t surprising that more people are comfortable with the technology and interested in using it. I expect as more applications are developed that allow people to use their phones and mobile devices to pay for goods and services, consumer interest in this technology will grow and we will see it move into the mainstream, probably within the next two-to-four years.”
Participants indicated they are ready to start using mobile banking and mobile payment at the point-of-sale now. For both applications, adoption is likely to begin with a smaller group of tech-savvy users embracing the applications early, and the majority of consumers adopting soon afterwards once the product is more established. Person-to-person mobile payments did not resonate as strongly with participants, with few indicating they would adopt at any point in time.
“The results of this research confirmed our view that mobile services are something that consumers are ready for,” said Kent Potterton, Director of Credit Services and New Product Development at PSCU Financial Services. “This was one of our primary motivations for adopting mFoundry’s mobile financial platform and enabling our credit unions to offer mobile banking and mobile bill payment services to their membership.”
Convenience is the most compelling feature of both mobile banking and mobile payment at the point-of-sale. Participants cited the ability to perform banking functions, such as check balances and pay bills, from anywhere without the need of a computer as the major convenience of mobile banking, and the prospect of no longer carrying a wallet as the major convenience of mobile payment at the point-of-sale. Conversely, participants indicated security and fraud were their main concerns regarding these mobile applications, wondering what would happen if their mobile devices were lost or stolen.
i think the findings are absolutely bang on, they right on target. the customer indeed would be a little too early exposed to P2P money transfers as it requires more faith and belief. having said that the mobile banking should be the first mover and perhaps then the p2p and last should be the payments at POS. however lets wait and watch what happens.
i think its very organic.
Posted by: Niranjan Gosavi | January 29, 2008 at 10:40 PM