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Money in a mobile world(Guardian Web Via Acquire Media NewsEdge) The eyes have it The growth of mobile devices in the last couple of years has been undeniably staggering. It is worth remembering that at the start of 2010 the iPad had not even been released and the word tablet was confined to the medical industry. nVision reported that at the start of the year ownership of smartphones and tablets among the British population stood at 70% and 41% respectively. Simply put, there are more eyes gazing into glowing screens than ever before.But it is more than just eyes; Millward Brown's Ad Reaction 2014 research reveals that on an average day in the UK, combined screen usage of smartphone and tablet now exceed that of laptop and even TV. It is this combination of high ownership and usage which means mobile devices will soon become the primary platform for online transactions. Consumers want apps The Google Search Trend for "mobile banking" reveals that levels of search interest have been consistently increasing since 2007 and are forecast to carry on growing.The British Banking Association report 'Banking on the Move' highlighted that over 12.4m banking apps have been downloaded, and in 2013 there were on average 18.6m banking app uses a week, double the 9.1m seen in 2012. This indicates an uptake much quicker than traditional online banking saw in the last decade.One reason for this increased uptake is that banks have embraced mobile much quicker than they did online banking, with banks learning from past experiences to give their customers a much simpler mobile banking platform. Additional data shows that app usage to check accounts and make payments is outstripping that of mobile browser access too. Emerging markets lead the way Another interesting revelation from Google Search Trends is that the some of the highest interest for the term "mobile banking" comes from Africa.Nigerian company Paga, which was founded in 2009, offers a simple way to transfer money to anyone in the country using just their mobile number. In a country where 80% of the population do not have access to a bank account (Source: KPMG) the importance of mobile services like Paga become all too clear. As of this month the company is approaching 2m users and during 2013 it processed 15 transactions a minute which were worth $300m. Mobile-first banking Research from Accenture recently revealed that 1 in 4 UK consumers would consider using a purely digital bank – a bank with no branches or call centres that is only accessible via laptops and mobile devices.There are several examples of this trend starting to emerge. US company GoBank gives its customers a mobile-first banking experience allowing users to pay bills and send money via their smartphone, or even pay in a cheque by taking a photo of it.Financial startup Number26 is offering an interesting take on modern banking. Besides a simplified sign-up process which includes an ID check over webcam, Number26 focuses a lot of attention on its mobile app. Along with the usual functionality of a banking app it also supplies customers with real-time transaction data and the ability to block or unblock a debit card at the touch of a button directly within the app. The Holy Grail. Buying with mobile New research from Unique Digital and YouGov shows that 42% of UK online consumers have used a mobile device to search and purchase travel and financial goods online, suggesting we are starting to emerge from a time where mobile was only used as a research device. This is backed up further by Hitachi Personal Finance who recently reported that 44% of loans were taken out using a mobile device.Actual mobile payments were given a boost this week by the launch of Apple Pay. Utilising Near Field Communication (NFC) technology, owners of the iPhone 6 can now make purchases by holding their phone near a contactless reader. Even though Android phones have had this technology for some time the power of Apple will surely boost awareness among consumers and sway retailers to provide the option to use this technology. However the biggest barrier to success for NFC payments could be convincing users the technology is private and secure. (c) 2014 Guardian Newspapers Limited. |