With mobile payments becoming an increasingly convenient method of transaction, providing consumers with a fast an hassle-free method to buy goods is at the centre of many new business concepts, which have given rise to countless fintech startups.
The Mobile Ecosystem Forum (MEF), in association with Wirecard, recently published another edition of the annual Mobile Money Report, in which they address both the ongoing trends in mobile payments and the issues that have to be overcome to stimulate further adoption. As payments move mobile, so does banking, offering new opportunities and challenges to please customers while keeping their privacy and security concerns in mind. The report is based on a survey of 6000 consumers in both developed and developing countries, and demonstrate an interesting rift in usage of mobile solutions. Several key takeaways from the report regarding the mobile trends indicate a rising adoption rate:
- In 2016, 78% of consumers have used their phone to purchase goods, up 4% from 2014.
- In banking, 61% of respondents have used their phone to use banking services, of which 44% used apps to check on their balances.
- Consumers are also starting to shift their preferences from branch servicing to apps, nearly (but not yet) overtaking branch servicing with a 26% to 28% preference.
- This year, China stood out, with 88% ofrespondents from the country making mobile transactions, compared to 66% from France.
If mobile payments and banking is to progress further, it is important to address issues regarding the privacy and usability. The survey revealed that once consumers starting the payment process on their mobile phone, 58% abandon their effort somewhere during the process, listing a variety of reasons why they did so:
- Too much sensitive information was required
- The process was overly time consuming
- Technical issues and connectivity problems
Overcoming these issues will be important for mobile payment providers to grow their market share and see their revenues increase, since losing half of your willing customers is not a sound business model for any enterprise.
To read or download a [PDF] copy of this year’s edition of the annual Mobile Money Report by MEF/Wirecard, click here.