Javelin Strategy & Research has released a report that indicates financial institutions must act now to implement person-to-person (P2P) mobile solutions before telcos capture the market.
The report also reveals that conditions are growing ripe for potential widespread consumer use of mobile devices to send payments between one another: smartphones are now used by 17% of consumers, mobile banking is used by many, and use of the internet for banking and shopping has been common for years. These are just some of the conditions that have created an increased likelihood that consumers will soon begin to use mobile P2P transfers.
‘The opportunity for mobile P2P is growing faster than we expected,’ explains James Van Dyke, president, Javelin Strategy & Research. ‘There’s a higher interest among tech-savvy consumers to engage in mobile P2P, and domestic transfers and international remittances have emerged as the two primary reasons. Banks are weary of deploying more technology in a tough economy, yet we could soon see a battlefield for mobile money that pits telco carriers against financial institutions.’
The Javelin report also reveals that the number of consumers likely to use mobile P2P payments and transfers has increased sharply to 26 million, with an additional 6 million people expressing interest since 2008. Mobile P2P may finally be ready for prime time and major banks should not risk losing out to telcos and their many smartphone-equipped customers.
Mobile P2P payments and transfers offer an initial income-generating step for financial institutions on the pathway from mobile banking to eventual mobile payments for everyday purchases in physical-world stores.
Key Findings of Mobile Person-to-Person Payments Report: