A recent report from British research company Juniper Research has found that mobile bill payment is quickly gaining global acceptance and will continue to see significant growth. The report, titled "Mobile Banking for Developed and Developing Markets", predicts that by 2016, more than 80 percent of mobile banking customers will pay their bills with their mobile device. It also says that users of transactional mobile banking services will grow to more than 550 million in 2016 from 185 million in 2011.
The report indicates that mobile bill pay adoption rates are highest in customers who have access to "triple play" mobile banking solutions that include an SMS or text option, a mobile web browser and a downloadable application. In addition, it says that transaction frequency is highest in developing regions where users don't have many other options for bill pay beyond using a mobile device. This increased adoption is also driven by growing smartphone adoption coupled with mobile banking offerings that include functionalities such as mobile bill presentment and payment, according to the report.
[For more on mobile banking, including remote deposit capture, mobile wallets and tablet apps, download the April digital issue of Bank Systems & Technology.]
"Customers are becoming increasingly more confident in using basic informational mBanking services," said Windsor Holden, Juniper's research director. "The natural progression is to engage in transactional banking, as they demand tighter control over their finances within a turbulent economic environment and busier lifestyle which are at odds with a 9 to 5 branch-based service."
At the same time that the report predicts an increase in global mobile bill pay adoption, it also acknowledges that user security concerns stemming from rapid growth of spyware and malware could stunt that growth. In order to ensure steady growth of online billy pay, consumers need to be convinced that mobile device security is as good or better as online security through a PC, asserts the report.