Transaction Trends

ETA Member First Annapolis recently completed the third edition of its semi-annual Study of Mobile Banking & Payments which finds while consumer adoption levels are rising, there is still a long way to go before consumers leave home without their wallets and much that banks can do to help pave the way.

Key Highlights Include:

• Consumer use of mobile channels, including both mobile banking and mobile payments, is steadily increasing.  In May 2015, 40% of respondents had made a mobile payment within the past 12 months. In-app/online purchases have overtaken bill payment as the most common form of mobile payment, and adoption of other forms of mobile payments (ranging from receiving loyalty points to P2P payments to paying for parking, taxis, and transit systems) has increased as well.

• Mobile wallets also gained traction: 51% of respondents report having a mobile wallet on their phone.  Apple and Amazon were the most frequently cited providers, and only 7% of wallet users currently get their wallet through their bank.  Banks, however, are respondents’ preferred provider, cited by 40% of current wallet users and 55% of non-wallet users.  Mobile wallet users also ranked integration with mobile banking as a “must have” feature of mobile wallets, alongside widespread merchant acceptance and coupons/discounts.  These findings suggest that banks have an opportunity to play a greater role in mobile payments, and bode well for recently announced FI wallets (e.g., Wells Fargo Wallet) that combine both banking and payments.

• Adoption and use of the Pays (Apple Pay, Android Pay, Samsung Pay) is increasing, and satisfaction levels among users remain consistently high.  Nevertheless, significant runway remains as 75% of survey respondents with compatible devices have not enrolled in a Pay service and only 4% report using it regularly.

For the full mobile study, please visit our website at www.firstannapolis.com/library/study-of-mobile-banking-payments.