Page 29 - Consumers and Mobile Financial Services 2014

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Conclusion

As smartphones become more common and more POS has increased substantially in each of the past
versatile, they can play an increasing role in the inter- two years. Indeed, nearly one in five smartphone
actions between consumers and financial service pro- owners report making a POS payment with their
viders, retailers, and other businesses. The constant mobile phone in the past 12 months, and a similar
presence of mobile phones in consumers’ lives also number indicate that they are likely to do so in the
makes them a potentially useful tool for the delivery coming 12 months. In addition, more than a quarter
of just-in-time financial information or as an aid in of mobile phone users express some interest in using
decisionmaking. Given the prevalence of mobile their phones to make payments at the POS. Thus,
phones—particularly smartphones—among minori- mobile payments appear likely to have substantial
ties, low-income individuals, and younger genera- growth potential as more retailers and businesses are
tions, mobile technology has the potential to able to accept them at the POS.
empower consumers and expand access to financial
services for underserved populations. However, con- The main factors limiting consumer adoption of
sumers will need to understand and weigh the ben- mobile banking and payments are security concerns
efits and potential risks to their security and privacy and the belief by some that these services fail to offer
presented by the use of this new technology. any real benefits to the user over existing methods for
banking or making payments. In terms of the value
The use of mobile banking has increased substan- proposition to consumers, the significant number of
tially in the past year and appears likely to continue mobile users who reported an interest in using their
to increase as more consumers use smartphones or phones to receive discounts, coupons, and promo-
recognize the convenience of this service, and as tions or to track rewards and loyalty points suggests
more financial institutions offer mobile banking. that tying these services to a mobile payment service
And while the use of mobile payments, broadly would increase the attractiveness of mobile phones as
defined, increased only slightly from 2012 to 2013, a means of payment.
the use of mobile phones to make payments at the