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While I don't have the figures, a lot more P2P and P2B transactions happen via cash / cheque / NetBanking than mobile banking today. PayM has the potential to convert a lot of that traffic to the mobile channel provided it was available directly to the users of these traditional channels. I noticed that Lloyds Bank is at least one bank that links PayM to NetBanking, not mobile banking. In fact, "You don’t need to register to send payments." according to its website. This makes a lot of sense since making PayM a part of the mobile banking app (e.g. PingIt) underutilizes its full potential.

@AlexP: When I clicked thru' the procedures for Barclays, HSBC and a couple of other banks, I got the impression that they wanted the customer to first download and install their own mobile banking app (e.g. PingIt) in order to link their account to PayM. That sounded a bit circuitous. But, if this can be done in a couple of seconds via NetBanking, if that's what you mean by "banking app", then it's indeed highly frictionless.

Fully agree. This post echoes my thought when I sent the following tweet yesterday: "Is this guy Michael Lewis a Luddite or what? What's wrong in using technology to acquire competitive advantage?" While I've bought Flash Boys, I'm debating whether to read it and spoil the good opinion I'd formed of Michael Lewis after reading his "The Big Short".

Interesting study. Reinforces the case for omnichannel banking. 

From Multichannel To Omnichannel And Beyond

Wonder if any of the participating banks is using QR codes to make the account linking process frictionless. 

Doubling of mobile banking transactions from last year is not hard to believe. However, is there evidence that "Brits shun branches" or is that assertion another proof of Web - The Forgotten Channel?

Anecdotally and from personal experience, for the rare occasion that people wanted to / had to visit a branch five years ago, they still want to / have to visit a branch today. I strongly suspect that a vast majority of people who use mobile banking today were using Phonebanking and / or NetBanking last year, not branch.

That said, branch banking customers can migrate directly to mobile banking - without going thru' Phone / Net Banking - if the next wave of mobile banking leverages superior smartphone specs and includes features (e.g. Mobile RDC) that pass muster with the regulators.

Phew, I'm relieved that the app will stick to quaint old AR use cases like "bringing an advert to life". In this day and age of Google Glass and Facebook Oculus, after reading the headline and the boldfaced intro text, I thought you could point your smartphone at someone in the bank's corporate banking team and the app would tell you all you need to know about their job description, qualification, experience and how to get recruited to their job. 

Absolutely right. We call it the "perpetual sales mode" for SaaS companies.

So far, it was either "fumbling with a phone app" or "whipping out a wallet". Thanks to Pebble, they are now swept into the same category of friction. Mobile wallet afficianados might protest and so do I, but for a different reason: After reading both phrases in a single sentence, I'm convinced that whipping out a physical wallet is far more convenient. When it comes to replacing the plastic form factor for payments, I boldly predict that wearable payment will scale heights that mobile payment has been trying to do in vain for close to a decade.

@PaulL: I guess we can all have our own definitions of mobile payment! When I bought an apartment, my lawyer pored over the title deeds with a fine toothcomb whereas, when I sold the same apartment, the same lawyer told me not to bother about anything as long "as the greenbacks are green". Maybe it's only me, but when I'm the seller in an unregulated, one-off product category like automobile, I'd put a tick in the trust box as long as the banknotes I get in return are genuine.