Buying and Banking On-The-Go

by Jack Loechner, Mar 27, 2008, 8:15 AM

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Buying and Banking On-The-Go

A new Harris Interactive study shows that one in four cellular phone users with mobile internet access now use their devices to buy goods and services online with a credit card, and nearly one in five saying they would like to someday use cell phones as a "mobile wallet," where charges would be billed directly to their mobile accounts. In addition, ten percent of the survey participants said they would consider wire transfers and stock trading via their mobile phones.

The study finds that mobile phone users are increasingly comfortable making banking and purchase transactions while on-the-go, a virtual taboo until now. 16 percent of mobile phone subscribers already use mobile banking services, with 60 percent of these people using the services at least once a week. Many others presently not banking and buying on-the-go expressed interest in mobile banking, with 35 percent open to checking bank account balances and transferring funds via their mobile devices. A third of those surveyed also said they would like to receive text message alerts from their financial institutions.

25% of Smartphone or iPhone users are more likely to "occasionally" use their device to make purchases, compared with 17% of mobile or cellular phone users. 77% of mobile users have "never" made a purchase with their device, compared with 65% of those with smartphones or iPhones.

Frequency of Making Purchases with Mobile Phones (% of owners surveyed)
Frequency	Mobile or Cell Phone	Smartphone or iPhone
Daily	1%	5%
Weekly	1	4
Monthly	4	1
Occasionally	17	25
Source: Harris Interactive, March 2008

Some 16% of mobile phone subscribers already use mobile banking services, and 60% of them use the services at least once a week, the study found. Consumers not currently banking or buying on-the-go expressed interest in having such applications on their mobile phones:

Interest in Banking, Commerce of Investment Apps for Mobile Device (% of owner respondents)
Service Interest	% of respondents
Check bank account balance/transfer/funds	35%
Receive text message alerts	33
Mobile wallet	19
Shopping	16
Wire transfer	9
Stock trading	9
Other	3
None of the above	53
Source: Harris Interactive, March 2008

Joseph Porus, vice-president, Harris Interactive, said "Today's mobile devices are the springboard for... services, with huge pent-up demand for mobile commerce capabilities... If security concerns can be quelled, the sky's the limit with consumer acceptance of mobile banking and purchase transactions..."

Anxiety about sharing personal data is the biggest barrier to consumer acceptance of mobile banking and commerce, with two-thirds (66%) of respondents saying so.

Concerns Preventing Use (% of mobile device owners)
Concern	% of respondents
Security encryption	66%
Exposure to fraud and financial scams	63
Lose device with valuable information	61
Cost	58
Usability	43
Reliability	37
Speed of network	23
Other	3
No concerns	11
Source: Harris Interactive, March 2008

17% are "extremely concerned" about the current cost of non-commercial transactions (e.g., sending an SMS, MMS, viewing a web page).

Degree of Concern About Cost Per Transaction
How Concerned	% of mobile owners
Extremely	17%
Very	16
Concerned	21
Somewhat	19
Not at all concerned	26
Source: Harris Interactive, March 2008

Porus concludes that "... concerns associated with using mobile devices for financial transactions... (is) similar to the evolution of the internet as a viable tool for banking and buying... We expect mobile technology to... become even more secure... (which) should ease people's fears and make mobile commerce appealing in the future."

For more information, please visit MarketingCharts here, or HarrisInteractive here.

 

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