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Bank clients want mobile payment options

July 30, 2013

New data coming from major bank chains suggest that consumers are turning to mobile banking even more quickly than they transferred to ATM usage, according to a report from The Boston Globe.

New data coming from major bank chains suggest that consumers are turning to mobile banking even more quickly than they transferred to ATM usage, according to a report from The Boston Globe.

Citing a study released by the Federal Reserve in March, the report stated that nearly half of all smartphone users had used mobile banking applications over the course of the past year. The data goes on to detail the many ways in which consumers are transferring their financial activities to their phones and tablets, displaying the distinct need for mobile payment processing options among retailers.

Most banks have begun to offer mobile banking apps to their customers, but many have also failed to offer full capabilities via smartphones. Compared to on-location or desktop-internet options, many customers feel their mobile capabilities are lacking. And consumers, many of whom have turned to their phones as their primary form of payment, are unhappy when they aren’t offered top quality options.

“We have to bring out added functionality,” said Mary Monahan, the executive vice president and research director for Javelin Strategy & Research. “It’s getting better. But there’s a long way to go.”

Mobile quickly becoming the top payment option among all consumers
Monahan’s claims are especially striking in light of other recent reports. A number of studies back her insinuations that mobile options are of paramount importance to consumers. For many, a lack of strong online payment processing options is enough reason to begin looking at other retailers.

In Britain, mobile spending has skyrocketed over the course of 2013. Phone-based expenditures jumped up over 25 percent between January and June, according to a report from the firm Bownty. Further, a study from Canadian firm Technology Strategies International found that by 2017, mobile payments would eclipse cash as the primary form of transaction among consumers. By then, the firm states, over $40 billion will be transacted via digital methods on a yearly basis.

The results, both for banks and retailers everywhere, are easy to analyze: consumers want to pay for things using their phones. So for businesses who don’t yet offer strong mobile payment options, now is the time to get on the bandwagon.

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