Tag: mobile banking

Federal Reserve takes note of the growing prominence of mobile payments throughout the country

Mobile payments are catching on in the United States. According to information from the Federal Reserve, more people are using their smartphones to manages their funds than ever before. Doing so represents a convenient way to conduct commerce, as mobile devices can be used anywhere and at any time. The Federal Reserve has made note of a spike in mobile banking from 2013, with more people opting to manage their bank accounts online from a smartphone or tablet.

Smartphone users are showing favor for mobile banking and mobile commerce in general

According to the Federal Reserve, 39% of smartphone owners are actively using a mobile banking application, an increase from the 33% of consumers that did so in 2013. The agency has also made note of an increase in mobile payments in 2014. The agency’s information shows that 22% of smartphone owners made a mobile payment in 2014, up from the 17% of mobile consumers that did so in 2013. Notably, the vast majority of those that did make a mobile payment did so by using QR codes, which have become a very powerful mobile commerce tool.

Banks are seeing more mobile activity thanks to new payment services that have been launched recently

Banks in the United States expect mobile banking and payments to gain popularity. One of the reasons more consumers are showing interest in mobile payments has to do with the launch of new services, such as Apple Pay. Most of the country’s major banks signed up to support Apple Pay when it launched in October of 2014, and many have seen an increase in mobile payments activity since then. According to Apple, $2 of every $3 spent across Visa, MasterCard, and American Express networks is being made through Apple Pay.

Better security features are making consumers more comfortable with the concept of mobile payments

Mobile payments are expected to continue gaining traction throughout the United States. Consumers are becoming less wary of mobile commerce as services become more secure and capable of protecting their financial information.

According to a new study, 33 percent of the people with accounts with that institution are willing to pay a fee.

The results of a study conducted by research company SNL Financial have now been released and they have shown that it is the customers of the Bank of America that are most willing to pay an additional monthly fee in order to have access to mobile banking features.

This shows that there are some customers who would be willing to pay to use a mobile app from their lenders.

The research took into account the responses of customers from nine large banks across the United States. Among its questions was whether or not the respondents would be willing to pay a monthly fee of $3 in order to be able to continue the use of their mobile banking apps. Among the customers from the Bank of America, 33 percent said that they would be willing to pay the additional fee to use the smartphone app from their bank. That was the highest percentage of any of the bank customers that were surveyed. In second place was Citigroup, from which 31 percent said that they would be willing to pay that same fee.

The report did not suggest why that specific bank’s customers were more willing to pay for mobile banking.

In terms of the other seven banks that were involved in this mobile apps study, the percentage of customers who said that they would be willing to pay an additional $3 per month in order to use the application were as follows:

• 29 percent – U.S. Bank
• 26 percent – TD Bank
• 25 percent – USAA
• 24 percent – Wells Fargo
• 24 percent – Chase Bank
• 22 percent – PNC Bank
• 18 percent – Capital One

This could be some very useful insight for banks, which are currently facing an ongoing time of low interest rates and which have been facing a struggle in finding ways to boost their revenues and ensure their growing profitability. Equally, banks have been observing a growth in the number of their consumers that have been embracing mobile banking features.