Banks are key in the move towards mass mobile payments - VocaLink

One-in-two people are more likely to use a new mobile payment method if it comes from a bank, according to a study by VocaLink.

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Banks are key in the move towards mass mobile payments - VocaLink

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Almost half of the 5000 UK consumers sampled by VocaLink identified bank involvement as a key driver in the move to mobile payments.

The research found that consumers are becoming more comfortable using mobile banking applications for more than just routine balance checks, as one-in-four now use their handset to transfer money to other people, move cash between accounts and view transaction histories on a regular basis - up from just seven percent two years ago.

Importantly, security concerns have become less of an issue in deterring mobile payments uptake, which remains nascent. Confusion over how mobile payments work in addition to a lack of knowledge around brands that operate in the space is proving more of an issue, creating an opportunity for banks to bridge the gap.

Cara O’Nions, marketing & customer insight director at VocaLink says: “Mainstream banks have the biggest opportunity, since mobile banking and payments are seen by consumers as an extension of a relationship that already exists. Respondents were much more likely to use new payment technology if prompted by their bank, as they trusted and indeed expected them to provide these services.”

 

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Comments: (2)

A Finextra member 

There is an inherent apathy when it comes to new mobile payment technologies. However, it is premature to conclude that banks are absolutely essential in convincing the public to adopt mobile payment.

All fintech and mobile payment vendors have to do is make the digitally-aware public reimagine mobile payments. While the emphasis has been on the "disruption" of mobile payments, more focus needs to be on "reimagination" of mobile payments.

Banks have worked very hard to convince the public that disruption of mobile banking and mobile payments is impossible...and as such that they should be the ones to usher in any new technologies....

The "security" issue that comes up is just a reinforced perception that fintech needs to take into account in order to remarket itself for the majority adopters.

Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

This definitely resonates with my personal experience of trying out mobile payments from MNOs and nonbanks before finally settling down on one from a bank. However, I'm not sure about the same applying to first time users / millennials for reasons highlighted in my following post:

Appealing To Millennials - The Challenge For PayZapp Mobile Wallet

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