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BizReport : Trends & Ideas : August 06, 2014

Mobile and PC bill payments to exceed $20 billion in 2014

The number of consumers using computers, tablets and mobiles to pay household bills is rising, according to new analysis released by Juniper Research. Meanwhile, both American and British banks see a rise in the number of mobile banking participants.

by Helen Leggatt

This year, the number of people paying their household bills using a computer or mobile device will exceed 20 billion - that's 16% of the global payment total, according to Juniper.

In the report, 'Mobile & Online Banking: Developed and Developing Market Strategies 2014-2019', Juniper reveals that despite a growing number paying bills by mobile, growth lies mainly with tablet and PC users. This is probably down to security concerns and screen size.

Keen to keep abreast of consumer behavior and new digital trends, banks are also considering the use of wearable technology from which consumers can make payments.

"Customers, particularly those of Gen Y, are attracted to banks that offer innovative and exciting new services," says report author Nitin Bhas. "Banks are eager to capture these customers early and achieve lock-in. The ability to offer cutting edge banking applications and services is also a way for banks to secure customer loyalty and increase customer satisfaction."

Bank of America's inaugural 'Trends in Consumer Mobility Report', released last month, found that more people are using their smartphone to conduct banking tasks. The Bank now has more than 15 million active mobile banking users.

Of those that have tried mobile banking, 31% log on via their smartphone at least once every day while the majority (82%) check their account via mobile at least once a week. However, Bank of America does recognize that banking via a physical branch remains the most popular method by which to monitor accounts.

In the UK, nearly £1 billion a day (US$1.7 billion) is being transacted via mobile and Internet banking, according to the British Banking Association's latest 'Way We Bank Now' report. Banking apps for smartphones and tablets are being downloaded at a rate of around 15,000 per day and have reached 14.7 billion, 2.3 billion of which have occurred since January 2014.

Image via Shutterstock

Tags: banking, bill payment, mobile, wearable technology

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