Mobile Banking 2015: Changing face of payments in the digital age
Mobile banking is perhaps most often lauded for its anytime, anywhere convenience; however, this survey of 14,829 people in 15 countries explores whether there are other benefits as well.
Executive summary
The Netherlands is the “most developed” mobile banking market in the ING International Survey 2015, with the United States in second place, closely followed by the United Kingdom. Overall, uptake in Europe is lower than the United States and Australia, but the share in Europe who intend to use it in the next 12 months is higher. Turkey is identified as a future “hotspot” for mobile banking as it has the highest share of internet users who use the technology, suggesting that the usage in Turkey has potential to rapidly grow. This year, the question about use of mobile banking was only asked to people in the survey who indicated they own a mobile device (such as a smart phone or tablet). Because of this change, direct comparisons cannot be made with mobile banking penetration rates in ING International Surveys from previous years.
Mobile banking is perhaps most often lauded for its anytime, anywhere convenience; however, there appear to be many other benefits as well. The vast majority – 85% – of mobile bankers in Europe list at least one way it has improved their money management. Moreover, instead of wearing off over time as you might expect if people get bored of the technology, the positive effects actually appear to gain momentum the longer people use mobile banking.
Mobile shopping is another way people make financial decisions on the go. More than half of people in Europe and the United States who have a mobile device have shopped on it in the last 12 months, buying goods and services via a smartphone or tablet. Mobile shopping is most popular among men and under 35s. Mobile bankers are also much more likely to be mobile shoppers.
Clothes and electronics are the items most commonly bought using mobile. However, within countries in Europe there are some nuances, with buying groceries using a mobile phone particularly popular in the United Kingdom, where it is the second most popular category after clothing.
However, the new technology may also leave these people vulnerable to tempting shortcuts when shopping. Overall, 34% of people in Europe agree that if a store saves their payment details for one-click ordering, they are more inclined to shop there – a figure that rises to 55% among mobile shoppers.
The number of ways to pay are increasing, with credit cards, contactless payments, mobile payment apps and cash among the choices. Against this backdrop, half of people in Europe say they are using physical cash less than 12 month ago.
Few people in Europe – 28% – see digital currencies, such as bitcoin, as the future of spending online. In addition, only 4% in Europe say they have used bitcoin in the last year. Media hype makes bitcoin attractive to a particular group but, overall, awareness of it is still low.
Mobile payment apps, however, have been used by 33%, with 51% saying they expect to definitely or probably use one in the next year. Mobile payment apps are new technologies that involve using smartphones or tablets to pay for a good or service, or to send or receive money. When asked which channel they trust most for mobile payment apps, 84% chose their own bank, compared with 5% for named groups (such as Google and Apple) and 4% for social media.
The ING International Survey on Mobile Banking, New Technologies and Financial Behaviour also examines mobile shopping – another way people make financial decisions on the go. In addition, it explores new payment methods, such as use of mobile payment apps, cash and digital currencies.
Download
Download report"THINK Outside" is a collection of specially commissioned content from third-party sources, such as economic think-tanks and academic institutions, that ING deems reliable and from non-research departments within ING. ING Bank N.V. ("ING") uses these sources to expand the range of opinions you can find on the THINK website. Some of these sources are not the property of or managed by ING, and therefore ING cannot always guarantee the correctness, completeness, actuality and quality of such sources, nor the availability at any given time of the data and information provided, and ING cannot accept any liability in this respect, insofar as this is permissible pursuant to the applicable laws and regulations.
This publication does not necessarily reflect the ING house view. This publication has been prepared solely for information purposes without regard to any particular user's investment objectives, financial situation, or means. The information in the publication is not an investment recommendation and it is not investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Reasonable care has been taken to ensure that this publication is not untrue or misleading when published, but ING does not represent that it is accurate or complete. ING does not accept any liability for any direct, indirect or consequential loss arising from any use of this publication. Unless otherwise stated, any views, forecasts, or estimates are solely those of the author(s), as of the date of the publication and are subject to change without notice.
The distribution of this publication may be restricted by law or regulation in different jurisdictions and persons into whose possession this publication comes should inform themselves about, and observe, such restrictions.
Copyright and database rights protection exists in this report and it may not be reproduced, distributed or published by any person for any purpose without the prior express consent of ING. All rights are reserved.
ING Bank N.V. is authorised by the Dutch Central Bank and supervised by the European Central Bank (ECB), the Dutch Central Bank (DNB) and the Dutch Authority for the Financial Markets (AFM). ING Bank N.V. is incorporated in the Netherlands (Trade Register no. 33031431 Amsterdam).