Over a quarter of working adults globally now banking with mobile
25 October 2013, London: According to global report from leading mobile advertising network, BuzzCity, mobile banking is on the verge of cashing in! BuzzCity surveyed 17,000 consumers across 22 countries on their attitudes to mobile banking and payments.
Amongst working adults over a quarter (26%) are using their phones for some form of financial or banking transaction, with nearly a fifth (16%) intending to try mobile banking. But it is those without bank accounts, ironically, that are fuelling the growth of mobile payments – a higher percentage than those with bank accounts.
Of those who are already mobile banking, balance enquiries (30%), bank transfers (26%) and cash withdrawals (28%), are the top three most-used banking features. When it comes to non-banking activities, 13% now use their phones to receive their salaries, and 12% pay for goods via their phones.The UnderBanked leads growth in mobile payments
The research has brought to the fore the emerging demographic group of the UnderBanked – those who do not have traditional bank accounts - who make up 30% of working adults using mobile. The UnderBanked are connected with exposure to mobile financial services and this is fuelling the growth of mobile payments: a higher percentage (19%) is using mobile payments for paying bills then those with traditional bank accounts (13%). Mobile is bridging the gap for those with no access to traditional banking services – some 12% use mobile money transfer services.
The UnderBanked are not necessarily a high credit risk group. While many (43%) believe they don’t have enough money to open an account, only 8% have a bad credit history. At least a fifth (21%) feel they do not need a bank account probably because banks do not offer services that are important to them, such as fast cheque cashing services (31%) and small cash loans (50%).Cash is king, but mobile is flourishing
When it comes to everyday purchases, cash is still king (73%) but nearly a fifth (16%) now regularly use mobile payments, fast closing the gap on debit and credit cards (23%). In such a short space of time mobile payments are becoming the norm. Mobile payments are also used for paying bills (13%) and like for like with Credit / Debit Cards (13%). The UnderBanked also favour cash, with the second form of chosen payment being mobile (19%), followed by the use of prepaid cards (15%).
Dr KF Lai, CEO of BuzzCity comments on the report findings: “Our research is showing a seismic shift in global consumer confidence when it comes to mobile banking, as well as how and what people are using mobile payments for. Mobiles are intrinsically wedded to our daily lives and our research highlights that this now extends to how we bank, whether we are with or without a traditional bank account – and what we are happy to pay for with via our mobiles. For the UnderBanked the mobile phone has become, in addition to a communication and surfing device, a necessary banking and payment channel and is filling a gap that the banks cannot meet.”
When it comes to everyday purchases, cash is still king (73%) but nearly a fifth (16%) now regularly use mobile payments, fast closing the gap on debit and credit cards (23%). In such a short space of time mobile payments are becoming the norm. Mobile payments are also used for paying bills (13%) and like for like with Credit / Debit Cards (13%). The UnderBanked also favour cash, with the second form of chosen payment being mobile (19%), followed by the use of prepaid cards (15%).The future is mobile
The rise of mobile payments is clearly being fuelled by the Underbanked but the next phase of growth for mobile banking and payments will be among those with bank accounts who are not yet using their mobiles for banking (44%). It is apparent that further education among potential mobile bankers will need to be implemented across the board to reassure them of the security and safety aspects and emphasise the availability, and convenience of third party transactions.
The survey results forms part of The BuzzCity Report covering the third quarter of 2013. During this period the network delivered some 69 billion banner ads, a quarterly growth of 6%. For more information or to view the report, visit reports.buzzcity.com
For more information please contact:
Siobhan Eyres, Rachel Bell or Sian Gaskell at CubanEight
Tel: +44 1869 238089
BuzzCity is a mobile advertising network that offers brand owners and agencies access to a global display network of publishers. As a leading international player, BuzzCity has developed in-depth knowledge of the mobile consumer and provides marketers with clear opportunities to reach this audience via its advertising and publisher programmes. The network also offers opportunities for publishers, developers and owners of mobile media properties to monetise their traffic through mobile internet advertising.
Additional information can be found at www.buzzcity.com.