Category: Mobile Payments

That will mean that these smartphone apps will have increased by double in that market by 2020.

According to the data revealed in a new Fiserv commissioned report, the number of mobile banking users in the United Kingdom is likely to nearly double by the year 2020, bringing it from the current 17.8 million to become 32.6 million.

The research also found that online banking occurring over laptops and computers will also keep growing.

The report was entitled the “Future Trends in UK Banking” and was created by the Center for Economics and Business Research. What it found was that mobile banking apps will be growing to reach £3.4 billion per week between now and 2020. At the same time, online banking is predicted to rise to £9.4 billion per week during that same span of time. This will bring about a considerable increase that is expected to reach a total of £12.8 billion per week by way of all online channels.

At the moment, only about 34 percent of adults in the United Kingdom are believed to use mobile banking services.

As the use of smartphones and tablets grows very quickly throughout the United Kingdom and adults in that country seek a larger number of mobile financial services, the report has indicated that there will be a near doubling of usage by 2020. At that time, it is expected that 60 percent of U.K. adults will be using those services.

If that many new device users start to use smartphone banking apps, it will mean that there will be 14.8 million new users of those services over a span of five years. This could present a considerable opportunity, says Fiserv, for banks of all sizes to develop new and innovative business models in order to be able to boost their appeal to consumers. It will also allow larger and more established banks to enhance their offerings through broader and improved digital services.

According to the Fiserve chief marketing officer, international group, Travers Clark-Walker, when discussing this mobile banking research, “The technological developments allowing for the recent surge in digital banking are also enabling banks and new entrants to reach potential customers more quickly and cost effectively than ever before.”

Apple Pay could launch in Canada by the end of the year

Apple Pay may finally be ready to expand beyond the U.S. market. Recent reports suggest that Canadian banks have been in negotiations concerning Apple Pay and, if successful, these negotiations could bring the mobile payments service to Canada by the end of this year. The service has managed to gain popularity in the United States market because of its convenient nature and security features. The demand for mobile payments services like Apple Pay has been on the rise in Canada for some time.

Those with newer iOS devices will be able to use Apple Pay

If Apple Pay launches in Canada, iOS users in the country will be able to use the service to pay for products in physical stores that support  mobile payments and online. The problem, however, is that the service is only compatible with the latest version of the iPhone: The iPhone 6 and iPhone 6 Plus. While iOS fans are often quick to purchase the latest iteration of the iPhone, many consumers do not have these devices, which will leave them outside of the reach of Apple Pay until they purchase new devices.

Banks have concerns regarding Apple Pay fees

Though banks are showing interest in Apple Pay, they have also expressed concerns regarding Apple’s fee proposals and how to set up the mobile payments service securely. Apple Pay uses biometric technology to secure transactions. Users have to register their fingerprint through their iOS device in order to authenticate payments. Because of this, the service is considered quite secure, but Apple imposes fees on all transactions made through the service, which may be a point of contention for some merchants and banks.

Apple will find competition in the Canadian market

If the security and monetary concerns of banks are resolved, Apple Pay is likely to launch in Canada by the end of 2015. It will not be the only mobile payments service available in the country, of course, as there are many startup services that have launched in Canada over the past few years. Other companies, such as Samsung, also have plans to launch their own payment platforms, which they plan to bring to Canada as well.