Banks have long enjoyed an unrivalled position of dominance in the payments world, but the advent of mobile payments is beginning to change all that.
There is a steady rise of digital brands as credible providers of mobile payments, aggressively launching new mobile shopping and payments capabilities aimed at meeting the needs of today’s increasingly mobile consumer. This fast paced expansion threatens to outpace slow moving banks. However, banks still have an opportunity to preserve their position if they move quickly.
The current landscape features rapid adoption of mobile payments by young consumers, with inroads being made by new digital brands. Mobile money-related transactions have become a more common occurrence in recent years. From making P2P transfers and ordering takeout, to purchasing everyday items and paying for lunch—mobile is transforming shopping and payments among consumers under the age of 35.
Banks are still enjoying the advantage of being trusted more than emerging digital providers when it comes to looking after a consumer’s payment security. However, amongst the younger generation this is rapidly changing. Banks need to realise that customers will not wait for them to deliver new payment services, and move quickly to leverage their current “trust advantage”.
by Hollie Stephens
European Marketing Campaign Executive at Jumio