Technology | Media | Telecommunications

Wednesday, March 20, 2013

Mobile Banking Users will Exceed 1 Billion by 2017

According to the latest market study by Juniper Research, a growing user acceptance of push mobile banking and a sharp rise in media tablet adoption will drive users of transactional mobile banking services to almost 200 million in 2017.

The tablet user base will represent approximately 19 percent of total mobile banking customers in 2017, compared to 9 percent this year -- as consumers engage in increasingly mobile lifestyles.

The study found that adoption of bill presentment and payment (MBPP) transactional banking by tablet users will be higher than mobile phone users, especially in developed areas where there is a higher adoption of tablet devices.

Juniper also found that as consumer tablet adoption continues to rise, there will be significant migration of purchasing and transaction activity from laptop and desktop PCs to media tablets.


Indeed, the development of the couch-commerce trend in the payments industry will be increasingly replicated within the banking industry.

"With online payments accounting for a significant proportion of all bill payments, especially in developed markets, BPP (Bill Presentment and Payment) transactions will indeed migrate from the desktop towards tablet devices," said Nitin Bhas, senior analyst at Juniper Research.

People often prefer managing bill payment and transactions via tablet devices, when compared to using their smartphones.

However, with banks bundling MBPP services within their mobile banking platform and additional momentum from easy to use smartphone apps, mobile phone transactional banking usage will quickly increase.

Other key findings from the study include:
  • The report analyses the relative proportion of mobile banking users accessing information services (“push”) and transactional banking services (“pull”).
  • Mobile banking users will exceed 1 billion in 2017, representing 15 percent of global mobile handset users.
  • The developed markets of Far East and China, North America and Western Europe will have the highest penetration of banking users in 2017.
  • Transactional banking growth across all markets will be at the expense of paper-based bill presentment, cash and check payment.