Mobile Payment Magazine

Consumers and Mobile Financial Services – Free Report

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fed-report-cover-2015Mobile phones have increasingly become tools that consumers use for banking, payments, budgeting, and shopping. Given the rapid pace of developments in the area of mobile finance, the Federal Reserve Board began conducting annual surveys of consumers’ use of mobile financial services in 2011. This 78-page report, “Consumers and Mobile Financial Services” (March, 2015) examines trends in the adoption and use of mobile banking, payments, and shopping behavior and how the emergence of mobile financial services affects consumers’ interaction with financial institutions.
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Report: The Payments Ecosystem 2015

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payments-ecosystem-2015-reportFrom Business Insider Intelligence: The Payments Ecosystem: The Players and Trends that are Reshaping the Industry. The payments industry had a huge year in 2014 and it’s showing no sign of slowing down. On the one hand tech giants like Amazon and Apple released new products that affirmed their long-term payments ambitions (Apple Pay and Amazon Local Register). On the other hand startups such as Stripe and ShopKeep continued to carve out market share, challenging older players like PayPal and VeriFone. [Read more…]

Mobile Payments : Revenue Models and Market Strategies 2015

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Mobile Payments: Revenue Models and Market Strategies,” a Thematic Research Report by Pyramid Research, examines the predominant service and revenue models in the mobile payments arena, as well as the market approach of selected players, in order to identify effective strategies and key success factors. The analysis is built upon in-depth case studies of selected mobile payments services around the world, including Alipay Wallet, Boku, Dwolla, LevelUp, RURU, Paym, Starbucks and Apple Pay.
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Report: The US Cards and Payment Industry

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Cards & Payment Industry ReportThe US card payments channel registered marginal growth during the period 2008-2012. The nation’s positive economic outlook, need for more sophisticated prepaid and charge card products, popularity of online and mobile shopping, and an increase in per capita income supported the growth.

During this period, the channel’s market size increased at a CAGR of 1.79% in volume terms to reach 1.5 billion cards in circulation in 2012 In value terms, the channel valued US$4.9 trillion in 2012. The US card payments channel grew both in volume and value terms during the review period. In terms of transaction volume, the channel grew at a review-period CAGR of 1.79% from 1.4 billion transactions in 2008 to 1.5 billion in 2012. [Read more…]

Report: Mobile Wallets in the US – Review and Analysis

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Mobile Wallets US ReportA new report entitled Mobile Wallets: The U.S. Landscape by Mercator Advisory Group identifies U.S. mobile wallets by category and technology.

The physical wallet might someday go the way of the checkbook, used by few and no longer a necessity. Growing consumer use of smartphones is creating a market for mobile wallets capable of serving many of the same purposes physical wallets served for centuries but now are able to take advantage of a plethora of new functions made possible in an increasingly digital marketplace. [Read more…]

Report: Leveraging An Omnichannel Approach To Drive $1.5B In Mobile Banking Cost Savings

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mobile-payment-report-omnichannelMobile bankers are valuable customers: rich, young, and flush with profitable bank products and services. The products and services are saving financial institution money — as the number of mobile bankers has grown, branch visitation has decreased considerably. However, mobile channels have not yet offset physical channel preference among mobile bankers.

For certain activities, mobile bankers inexplicably turn to the brick and-mortar branch at higher rates than all consumers. Identifying costly behaviors to transition to electronic channels is the first step for FIs looking to cut delivery costs. The next move is bolstering adoption of value-added services, which are not only profitable but also encourage overall use of the mobile channel.

Understanding how the mobile channel attracts consumers that use more bank resources requires analysis of these consumers’ behavior and product ownership. Drawn from robust consumer data, this report, entitled Leveraging An Omnichannel Approach To Drive $1.5B In Mobile Banking Cost Savings, provides best practices and recommendations to encourage consumers to maximize the potential of their mobile devices — and save FIs money in the process.

Primary Questions:

– What features make mobile bankers unique and valuable customers?
– To what extent has mobile banking lowered delivery costs for FIs?
– Why are mobile bankers still turning to the branch over electronic alternatives?
– Are further savings possible by encouraging the use of the mobile channel?
– Which behaviors should be targeted to encourage electronic channels over branch visitation?
– Which advanced mobile banking features are profitable for FIs and desired by customers?

Contents:
Overview
Primary Questions
Methodology
Executive Summary
Recommendations
What Sets Mobile Bankers Apart, and Why Are They Valuable?
Mobile Bankers Are Young
Mobile Bankers Are Wealthy
Mobile Bankers Are Early
Adopters
Mobile Banking Attracts New Relationships
Mobile Bankers Are Flocking to Bigger Banks
Mobile Bankers Are Adoring Mobile Apps, Which Increases Readiness for Advanced Features
Mobile Bankers Own More Profitable Financial Products and Services
Mobile Banking Adoption Is Saving FIs Money — $1.5 Billion More Can Be Saved
Why Do Mobile Bankers Go Into a Branch?
Which Behaviors Should Banks Target Among Mobile Bankers to Encourage Electronic Alternatives?
Mobile Bankers Still Turning to the Branch to Deposit Funds
FIs Can Save $1.5 Billion if Mobile Bankers Switch In-person Deposits to Mobile Once per Month
Mobile Bankers Show a Higher Preference for Using the Branch to Monitor Their Accounts
Mobile Bankers’ Use of CSRs Declines Over the Past Three Years
Further Driving Alert
Adopon Could Reduce Use of Costly Channels
Budgeting Tools Will Help Reduce Mobile Bankers’ In-Person Visits for Monitoring
Mobile Bankers Show Higher Interest in Advanced PFM
Mobile Banking Value-Added Services Can Increase Profits and Turn Mobile Bankers Into Power Users
Value-Added Services Satisfy Needs and Make Mobile Bankers More Profitable
Mobile Imaging Can Be Used to Attract Mobile Bankers
Market Prepaid Accounts to Mobile Bankers
Mobile Wallets Can Generate Revenue
Mobile Bankers Desire Location-Based Offers and Coupons
Mobile Bankers Use Mobile P2P, But Greater Adopon Is Necessary
Appendix
Related Research
Companies Mentioned

Table of Figures

Figure 1: Maximizing the Value of Mobile Bankers
Figure 2: Who Are Mobile Bankers in the U.S.?
Figure 3: Technology Attitudes of Mobile in Bankers Past 90 Days vs. Online Bankers in Past 90 Days
Figure 4: Recency of Joining Primary Bank by Mobile Bankers in Past 90 Days vs. Online Bankers vs. All Consumers (Benchmark)
Figure 5: Mobile Bankers in Past 90 vs. Non-mobile Bankers by Bank Size
Figure 6: Methods Used to Conduct Mobile Banking (2009–2012)
Figure 7: Financial Product and Service Ownership by Mobile Bankers (Past 90 Days) vs. All Consumers
Figure 8: Financial Product Ownership, Selected Products by Mobile Bankers (Past 90 Days) vs. All Consumers.
Figure 9: Percent of Mobile Bankers in Past 30 days vs. Percent of Branch Visits in Past 30 Days (2009–2013)
Figure 10: Reasons for Going to the Branch for Mobile Bankers (Past 90 Days) vs. All Consumers
Figure 11: Top 3 Channels Mobile Bankers Prefer to Conduct Financial Behaviors
Figure 12: Estimated Cost per Transaction
Figure 13: Preferred Method to Deposit Funds by Online Bankers (Past 90 Days) vs. Mobile Bankers (Past 90 Days) vs. All Consumers
Figure 14: Rates of Deposit Through Physical Branch
Figure 15: Potential Annual Savings Per Mobile Banking Customer by Converting One Monthly Deposit to Mobile
Figure 16: Channel Preference for Monitoring Balances, Accounts, and Transfers by Mobile Bankers (Past 90 Days) vs. Online Bankers (Past 90 Days) vs.All Consumers
Figure 17: Used a CSR to Perform Any Banking Function by Mobile Bankers in Past 90 Days vs. All Consumers 2011–2013 .
Figure 18: Use of Alerts in Past 90 Days by Mobile Bankers, Online Bankers, and All Consumers
Figure 19: Preferred Source for PFM for Online Bankers (Past 90 Days) vs. Mobile Bankers (Past 90 Days) vs. All Consumers
Figure 20: Likelihood to Use Advanced PFM Services if Available (Probably Would Use/Definitely Would Use) by Mobile Bankers (Past 90 Days) vs. Online Bankers vs. All Consumers
Figure 21: Interest in Using Mobile Imaging to Compare Credit Card Rates by Segments
Figure 22: Prepaid and Checking Account Ownership by Mobile Bankers and All Consumers
Figure 23: Consumer Likelihood to Opt In to Mobile Delivery of Location-Based Offers or Coupons
Figure 24: Recency of Conducting a Mobile Person-to-Person Transfer by Mobile Bankers (Past 90 Days) vs. All Consumers
Figure 25: Consumers Using Mobile Banking in Past 90 days vs. Never Used Mobile Banking by Age
Figure 26: Mobile Bankers (Past 90 Days) vs. All Consumers by Annual Income
Figure 27: Mobile Bankers (Past 90 Days) vs. Online Bankers vs. All Consumers by Investable Assets
Figure 28: Use of Bank Bill View by Mobile Bankers(Past 90 Days) vs. Online Bankers (Past 90 Days) vs. All Consumers
Figure 29: Consumer Phone Feature Use, 2010–2012

Companies Mentioned
– Chase
– Groupon

For more information, and to order: Research & Markets – Leveraging An Omnichannel Approach To Drive $1.5B In Mobile Banking Cost Savings

Special Investor Report: NVIDIA

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NVIDIA might seem like an odd choice for investors looking to profit from the mobile boom. After all, of all things, its bread-and-butter product is graphics processors found in PCs.

Neither of NVIDIA’s direct peers foresaw a shift in technology the way NVIDIA did, yet NVIDIA gets lumped into the same basket as them, beaten down whenever negative PC news hits the presses. That’s a mistake that you can profit off. NVIDIA’s not only is a dominant player in mobile, but it’s also prospering from emerging market growth and has established itself as a central figure in high-end computers ranging from workstations to supercomputers, a lucrative offshoot of the PC era that should provide high profits for decades to come. [Read more…]

The ath Power 2012 Mobile Banking Study

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Mobile Banking Research

Key findings in the recent ath Power Mobile Banking Study reveal that banks are not adequately promoting their mobile banking offerings, and that Remote Deposit Capture is the missing feature most sought by customers. The National study ranked customer satisfaction with today’s mobile banking offerings, and USAA earned the top spot with 73 percent of its users claiming high satisfaction. [Read more…]

Mobile Industry Predictions Report: 2012

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The Yankee Group has just released its free 17-page 2012 Annual Predictions Report, which looks into what the future has in store for the ever-growing mobility landscape.

Overview:

The world is in transition and in the year ahead, mobile will be both the protagonist and the subject of this instability. During the last five years, networks and the information they carry have plugged more than 2 billion new participants into the mobile economy. The winners in this landscape will be those players that can scale quickly and treat each user as a unique customer.

Report Highlights:

  • The mobile gold rush is global in scale a and touches all customers. In the last five years, 2 billion new users joined the mobile revolution. Looking ahead, mobile workers and consumers will embrace tablets, mobile content and personal cloud services. At the infrastructure level, the operator imperative to monetize all-IP networks will drive investment in policy solutions.
  • Asia-Pacific takes the lead in tablet sales. Yankee Group forecasts U.S. tablet sales will total 17 million in 2011 and almost 25 million in 2012. Similarly, tablet sales in all of Europe will exceed 15 million in 2011 and reach more than 26 million in 2012. And tablet sales in the Asia-Pacific region will total 20 million this year and reach almost 39 million in 2012, more than 50 percent above the U.S.
  • Diameter signaling is taking off. Yankee Group has seen significant request for proposal/request for information (RFP/RFI) activity and expects spending on IP-based Diameter signaling to more than double between 2011 and 2012—growing from U.S.$22 million to U.S.$45 million. And overall, we see the market mushrooming to U.S.$212 million in 2015, for a whopping CAGR of 57.2 percent.
  • Personal cloud services are hitting the high-growth phase. We forecast 17 percent of professionals with three or more devices will adopt a personal cloud service for online storage, backup and synching.
  • Economic woes threaten operators. Western European operators will see churn increase from approximately 2.3 percent per month today to 2.4 percent by the end of 2012, despite operators’ ongoing efforts to migrate customers to postpaid services and long-term contracts linked to new smartphone purchases. The world is in transition and in the year ahead, mobile will be both the protagonist and the subject of this instability. During the last five years, networks and the information they carry have plugged more than 2 billion new participants into the mobile economy. The winners in this landscape will be those players that can scale quickly and treat each user as a unique customer.

For more information and to download the report: 2012 Annual Predictions Report: Mobile

Banking the Unbanked: Report Examines Mobile Banking in Emerging Markets

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World Economic Forum, prepared in collaboration with The Boston Consulting Group.

Despite the broad awareness that mobile financial services can serve as a means for “banking the unbanked” on a global basis, widespread adoption has yet to be achieved, according to the Mobile Financial Services Development Report 2011, a new report released by the World Economic Forum and The Boston Consulting Group. According to the report, to meet the financial needs of underserved populations, most countries—even those that have achieved scale with mobile money transfer—should focus on the flexibility of regulatory provisions for nonbank players, the competitiveness of market structures, and the strengthening of financial literacy skills of individuals.

The report provides a comprehensive analysis of more than 100 variables across 20 countries in Africa, Asia, and Latin America. It measures the critical factors necessary to achieve meaningful scale of mobile financial services and meet the needs of billions excluded from the formal economy, and notes that the adoption of mobile financial services is currently confined to a few countries where, historically, access to financial services has been constrained and the scope of services limited to mobile money transfer. The findings suggest that financial services such as savings, credit, and microinsurance are only now becoming available and that regulatory environments, market competitiveness, and financial literacy of end users all need to be collaboratively addressed before meaningful scale can be achieved.

Countries such as Kenya and the Philippines are among the few covered by the report that have achieved adoption levels of more than 10 percent of the total adult population. A defining characteristic of these countries is a dense network of agents—retail access points where it is possible to register account holders and handle cash transactions. However, as these countries look to achieve scale in mobile financial services other than payments, it will be critical for them to focus on factors such as government disbursements through the mobile platform, the competitiveness of their financial and telecom sectors, and better data collection and monitoring to facilitate “test and learn” approaches.

“Including millions in the formal economy by providing them with tools to transact and save can have strong positive economic and social benefits,” said Marc Vos, a partner in The Boston Consulting Group’s Technology, Media & Telecommunications practice. “But public and private stakeholders must first get the basics right: solid and efficient distribution networks close to the consumer, and regulations that combine openness to innovation with protection of consumers and broader financial stability.”

In terms of the array of enabling factors covered in the report, several countries, such as Brazil and India, demonstrate areas of relative strength when compared with countries that have already achieved scale in mobile payments. The ability to leverage existing agent networks and consumer protection in Brazil may facilitate the development of more complex financial services through the mobile platform. The widespread availability of mobile phones within India, the degree of competition within its telecom sector, and recent regulatory changes may drive dramatic improvements in adoption levels.

Estimates of the levels of adoption of mobile financial services in the 20 countries surveyed were compiled through an analysis of deployments done in collaboration with the GSMA Development Fund. A survey of regulators, conducted jointly with the Alliance for Financial Inclusion, provided data on regulations specific to mobile financial services. Data from a number of secondary sources such as the Consultative Group to Assist the Poor were also integrated into the analysis. The report contains a profile for each country featured in the study, including a summary of the relative advantages and disadvantages within its mobile financial-services ecosystem, as well as an extensive listing of data tables showing results for each variable used in the country profiles. The data set is available for download and can also be analyzed online with other World Economic Forum data sets for deeper and customized analysis.

Some report highlights:

  • Few countries have achieved meaningful scale in mobile money transfer—mobile savings and credit services are still in the initial stages of development.
  • Dense agent networks are characteristic of countries that have achieved scale in baseline mobile money-transfer services.
  • Government disbursements through the mobile platform, continued cooperation and innovation among industry sectors, and improvements in the quality of data sharing are opportunities to help unlock growth.

More information: Mobile Financial Services Development Report 2011

 

Source: Boston Consulting Group (BCG)