A new study from VocaLink, the UK payment infrastructure provider, has revealed research into the mobile payment habits of more than 5,000 UK consumers.
The Next Generation of Payments Report, an independent study conducted by Illuminas, is VocaLink’s second analysis of transaction trends since 2013, revealing that whilst mobile banking has officially ‘arrived,’ adoption of mobile payment technology is still lagging behind.
The study reveals that overall, consumers valued the convenience of mobile banking and security concerns became less of an issue the more familiar they became with the technology.
This was reflected in increased uptake and more frequent use, with 46% of smartphone owners now using their device for some form of mobile banking (almost doubled from 27% in 2013).
There was a real desire to move beyond passive activity to more dynamic use. For example, although checking bank balances (passive) was still the most common activity at 31% (up from 11% in 2013), one in four mobile banking customers now use their mobile to transfer money to other people, move cash between accounts and view transaction histories on a regular basis (all up from 7% two years ago).
Despite these encouraging results for banking, mobile payment usage remains relatively nascent. Just 15% of smartphone users pay bills on their mobile device, a relatively low figure – although this is still a five-fold increase from 2013 (3%).
Confusion over how mobile payments work in addition to a lack of knowledge around brands that operate in the space is also hampering adoption rates.
However, there is all to play for in the mobile banking war since one in two respondents clearly identified banking brands as a key driver for them to start using mobile payment technology.