Tag: mobile banking

A recent study suggests the launch of a new UK payments service has pushed the nation into the top m-payments market spot, worldwide.

After comparing international mobile payments markets, a UK Payments Council research paper claims that the United Kingdom is the m-payments market leader and that the country’s success is related to the P2P Paym service, which was launched this past April by the Payment’s Council.

The report compared the person-to-person (P2P) mobile payment services of several countries.

Aside from the UK, the countries that were studied and compared included the US, Japan, Sweden, India and Kenya. The report compared a variety of aspects, some of which included infrastructure, ownership, the mobile banking experiences of customers, and speed.

Adrian Kamellard, the Payment Council’s chief executive said about the report that “Looking round the world makes it clear that Paym is a world leading service, even when compared with trailblazers such as M-Pesa in Africa. The UK payments industry’s collaborative model of change, which builds upon our existing world class real-time payments infrastructure has delivered real benefits for customers.” Kamellard added that unlike other parts of the world, Paym is a free service for customers “at the point of use.”

He went on to say that mobile technology has altered human behavior around the world and that this has transformed the way that people carry out many of their important daily tasks. He added that it is interesting to observe how technological, cultural and local regulatory differences affect how a new mobile payments solution is applied.

Paym is the only mobile payments service in the world that is industry-wide to use P2P.

In addition to this finding, the Payment’s Council report also claimed it found that the US and Japan are behind Sweden and the UK when it comes to delivering P2P m-payment services. It also said that it is a struggle for India to make its service as universal is it is in Sweden and the UK due to the country’s geographic and demographic disparity. In addition, it noted that Kenya’s M-Pesa mobile payments service has increased the nation’s inclusion and financial capability, which previously had an infrastructure lacking in payments and banking.

The Australian banking industry has increased its efforts to offer consumers new mobile payments technology.

Throughout the past year, Australia’s major banks have become more and more invested in mobile payments that utilize NFC technology and all if the “Big Four” – Westpac, CBA, ANZ and NAB – now have contactless cards available for their customers.

Over a 12 to 18 month period, contactless payments soared from 10% to 60%, according to Westpac.

The Australian bank also predicted that three million people will make approximately five contactless mobile payments, on average, each month in 2015, which will result in a $3 billion industry.

Mobile payment solutions embedded with near field communication (NFC) technology are believed to be the tech that is the most probable to advance mobile proximity commerce in the years to come. Moreover, with the country’s chief banks getting involved, there has been an increase in consumers adopting NFC services.

NFC solutions, such as Commonwealth Bank’s CommBank app, which enables users to “Tap and Pay” with their smartphone, offer consumers all of the advantages of contactless cards like ease of use, convenience, security and fast payment. What’s more, however, they make a user’s mobile device even more practical for day-to-day use.

For instance, Commonwealth Bank customers have the ability to withdraw cash from ATMs without having to use a card. All they need to do is login to the financial institution’s mobile app and choose the desired amount they want to withdraw. They will then be provided with a code that they enter into the ATM and a PIN that is texted to their mobile.

Even wearable technology is being used. Recently, St. George became the first bank in Australia to release a banking app created for smartwatches. All of these different trials from the banks are the innovative ways that these institutions are attempting to make it more convenient for consumers to go about their daily lives without having to worry about using cash or plastic cards.

Security will play a significant role in the adoption of NFC technology.

Security is the heart of every payments platform. For this reason, consumer trust is essential in order for a payment method to do well and survive. In a newly conducted survey by RFi Consulting, 55% of survey respondents cited security as one of the three main factors that affect how they choose to pay for merchandise. Thus, it should come as no surprise that security has been a top priority for banks in the creation of their latest mobile payment technologies. If a phone equipped with NFC technology was stolen or lost, for example, the consumer is safeguarded from fraudulent account activity in the same way they would be with a credit or debit card.