Is This the Future of Banking?

Focus group views on mobile payments

Is This the Future of Banking?
banking; mobile bankingiStock

Mobile payments and the barriers that may prevent consumers from adopting or safely using the technology.

Use of mobile payments in the United States is projected to grow at a 22 percent compound annual rate through 2019 and could offer a more convenient and less expensive way for Americans to manage their money, especially the more than 9 million U.S. households that are unbanked—that is, do not have bank accounts. To better understand whether mobile payments could meet the needs of this population and to learn consumers’ views on the possible benefits and risks of mobile payments, The Pew Charitable Trusts in May 2015 convened focus groups with people who use mobile payments and with unbanked customers who own smartphones.

This brief highlights the findings about the potential of mobile payments and the barriers that may prevent consumers from adopting or safely using the technology.

The research found that:

  • Younger smartphone owners with bank accounts used mobile banking more regularly than similar consumers over age 66.
    • More: Those who had adopted mobile banking were using it to pay bills and transfer funds; some were also using it to deposit checks.
  • Mobile payments were used most frequently for online shopping and funds transfers.
    • More: Users cited convenience and speed as reasons for adopting the technology.
  • All groups had relatively high awareness of major mobile payments brands, which allow consumers to make mobile purchases at a variety of online and brick-and-mortar retailers—through services such as PayPal, Apple Pay, and Google Wallet—and to buy coffee at Starbucks, currently the most popular mobile payments app.
  • Nonusers found potential incentives—cash back, reward points, discounts and coupons, and free items—enticing and suggested that they might use mobile payments if these were offered.
  • Participants cited several barriers to using mobile payments, including a lack of perceived personal benefit as well as discomfort with some industry practices, particularly regarding security.
The front facade of the Supreme Court of the United States in Washington, DC.
ian-hutchinson-U8WfiRpsQ7Y-unsplash.jpg_master

Agenda for America

A collection of resources to help federal, state, and local decision-makers set an achievable agenda for all Americans

Quick View

Data-driven policymaking is not just a tool for finding new solutions for emerging challenges, it makes government more effective and better able to serve the public interest. In the coming months, President Joe Biden and the 117th Congress will tackle a number of environmental, health, public safety, and fiscal and economic issues—nearly all of them complicated by the COVID-19 pandemic. To help solve specific, systemic problems in a nonpartisan fashion, Pew has compiled a series of briefings and recommendations based on our research, technical assistance, and advocacy work across America.

Lightbulbs
Lightbulbs

States of Innovation

Data-driven state policy innovations across America

Quick View

Data-driven policymaking is not just a tool for finding new solutions for difficult challenges. When states serve their traditional role as laboratories of innovation, they increase the American people’s confidence that the government they choose—no matter the size—can be effective, responsive, and in the public interest.

mobile banking
mobile banking
Press Releases & Statements

Pew: Consumers See Mobile Payments as Helpful but Potentially Troublesome

Focus group participants say technology is risky but rewarding

Quick View
Press Releases & Statements

WASHINGTON—A new issue brief from The Pew Charitable Trusts finds that consumers are interested in using mobile payments for speed and convenience but also have concerns about security of their personal information.

mobile banking
mobile banking
Report

Mobile Remote Deposit Capture

The disclosure practices of banks and prepaid card companies

Quick View
Report

This report examines how financial institutions present mobile remote deposit capture (mRDC) to their customers.