Tag: mobile payments technology

This represents a considerable increase in the amounts that banks were spending on this IT last year.

An Ovum report has just been released, in which its results have shown that retail banks around the world will be boosting their spending on technology by 3.4 percent, this year, which reflects a serious growth in the mobile payments sphere.

This will bring the total amount that banks intend to spend on IT up to $118.6 billion, worldwide.

The Ovum industry analysts released their forecasts that said that North America’s retail bank spending on mobile payments and other technologies will increase by 3.3 percent. Europe would be seeing a rise in its spending by 1.8 percent. It is Asia that will see the highest amount of spending growth, with an increase of 5.1 percent.

In the mobile payments and banking report Ovum stated that the importance of this channel is evident.

The business trends report indicated that mobile payments and banking would become a “clear IT investment priority in 2013” for retail banks. It also indicated that the amount of spending for all online channels would grow by 6.2 percent this year. That included smartphones, tablets, and PCs, alike.

Also included in the report, was the speculation that data privacy and credit risk management would be among the primary drivers of technology spending in terms of 2013’s mobile payments and online banking. It stated that the worldwide MIS investment would hit the $6.4 billion mark before the year is over. It also pointed out that banks in North America would be spending $2.3 billion in this domain, and this will represent 5.1 percent of the overall spending within that department.

Ovum’s release indicated that within that continent, the growth in the spending for technology was an indicator of increased efforts to reduce costs and to place more concentration on various digital channels and marketing efforts that would help those financial institutions to boost their revenue growth alongside customer satisfaction.

Ovum senior analyst for financial services technology, Jaroslaw Knapik, explained the predictions about mobile payments and technology spending by saying that “Whilst regulatory compliance has certainly fuelled a significant amount of the investment predicted in the forecast, it is by no means the sole driver,” adding that “The level of investment in digital channels gives a clear indication that banks are fully cognizant of the growing expectations of their customers, as well as the opportunities they present.”

Participants in an online survey reveal that they believe a cashless future is on the way.

Harris Interactive has released the results of its most recent survey, which has indicated that among adults in the United States, well over half believe that mobile payments will replace both cash and credit card based transactions at some point down the road.

Over 30 percent of the respondents said that the replacement would occur in five years from now.

The survey was performed online from November 14 through 19, with the participation of 2,383 respondents. Each were adults and they all lived in the U.S. When asked about the replacement of credit cards with mobile payments, the 66 percent believed that this would one day occur. That said, only 32 percent of the participants felt that this would occur within the next half decade.

The mobile payments survey also looked into the replacement of cash with smartphones.

The results of the poll showed that the participants felt nearly the same way about cash as they did about credit cards in terms of their replacement by mobile payments technology. In fact, 61 percent of the respondents said that they felt that one day, we would no longer use cash because of our smartphone devices. However, only 26 percent believed that this will have happened in five years’ time.

The survey findings identified several different reasons that can explain the hesitation that consumers have regarding the use of mobile payments transactions. These can help to explain why adoption of the technology has been as slow as it has.

The survey presented the participants with a number of different reasons from which they could choose, in order to explain why they would hesitate to use mobile payments for making purchases. The answers included – but are not limited to – the following:

• Over half (52 percent) are content with their credit cards and/or cash so they don’t see a need to change.
• 51 percent expressed concerns over mobile security in terms of financial and private data.
• Half didn’t own a smartphone.
• 40 percent didn’t trust the security of entering mobile payments information into a merchant’s device.