UK Study Finds 21 Million Consumers Would Switch Banks over Mobile Payments

by Tristan Hugo-Webb 0

A new study commissioned by Zapp (a yet to be launchedmobile payment service that runs on the UK’s Faster Payments network), 21 million British consumers say that theywould switch to a different primary financial institution in order to access arobust mobile payment service.

According to the study, 44% of consumers plan to switch theirprimary financial institution if it was unable to offer mobile payments and hadno plans to do so. Furthermore, 33% of the respondents said that they wouldswitch from their primary financial institution within a year if their existingfinancial institution fell behind on providing mobile payments.

The study also found that the ability to pay from one’shandset for online and in-store payments will increasingly become important inthe future with 47% of consumers saying they will actively choose to shoponline or in-store with a retailer because it accepts mobile payments withinthe next five years.

Commenting on the study’s results, Peter Keenan, CEO of Zappsaid, “The success of early forms of mobile payment and the buzz aroundforthcoming launches of mass market initiatives has clearly whetted consumers’appetites. This research shows that anticipation levels are running high and itsuggests banks and retailers stand to gain significant competitive advantagefrom offering and accepting mobile payments early. I’m confident 2015 willprove a tipping point, as simple, secure mobile payments like Zapp become areality for millions of British consumers.”

Unlike other mobile payment services that have largelylaunched without consumers truly willing to make payments via their handset,Zapp is being launched with the full support of the UK’s leading financialinstitutions and can build on the successful of other mobile payment serviceslike Barclay’s Pingit and the popular financial institution supported PayM (aP2P mobile payment service) and thus can be expected to successful from thestart. However, if the results above are to be believed as well then Zappshould have a long and successful future.

Overview by Tristan Hugo-Webb, Associate Director, Global Payments Advisory Service for Mercator Advisory Group

Read full story at FX-MM

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