Mobile Payments Gaining Traction

by Sarah Grotta 0

Fiserv released new data from a survey they conducted that outlines the adoption of mobile banking capabilities by banked consumers. They shared some details around bill pay and P2P payments specifically:

Mobile Bill Pay: Mainstream Among Mobile Banking Users
The percentage of consumers using mobile bill pay rose significantly from late 2015 to late 2016, growing from 22 percent to 28 percent. Among mobile banking users, 41 percent used the service to pay bills in the past 30 days. Bill payment was a notable factor in mobile banking use, with 53 percent of mobile banking users citing the ability to pay bills anywhere and anytime, 46 percent citing the ability to quickly pay bills at the last minute, and 31 percent citing the ability to receive mobile alerts when bills are due as reasons they use mobile banking.

Person-to-Person Payments: Usage Up and Security Concerns Down
The share of consumers using person-to-person (P2P) payments via a financial organization in the past 30 days, a timeframe considered to designate “active” use, increased by more than one-third from 2015 to 2016, growing from 14 percent to 19 percent. Over the past year, sharing household expenses was the most common use of the service (9 percent), followed by repaying a loan or debt to a friend or family member (7 percent) and rent (6 percent).

An interesting finding was that concerns about security is becoming less of an obstacle to adoption, despite the increase in reported data breaches including the compromise to financial information:

Security concerns are a lower barrier to adoption than in the past, with the percent of nonusers of P2P payments saying they have not tried the service due to concerns about security declining from 29 percent in 2015 to 21 percent in 2016

Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group

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