According to figures from accountancy firm KPMG, the number of mobile banking users will hit 1.8 billion by 2019
Banks must “adapt or die” when it comes to the digital world, with the number of people using mobile banking set to double in the next four years.
According to figures from accountancy firm KPMG, 800 million people used mobile banking in 2014, but this will reach 1.8 billion by 2019 – more than 25 per cent of the global population.
Mobile is already the largest banking channel by terms of volume of transaction, according to KPMG’s figures which used primary survey data supplied by UBS Evidence Lab, but the sector is about to experience rapid growth.
The Global Mobile Banking Report suggests the volume will increase as mobile banking and payment systems are integrated into other technologies.
KPMG’s David Hodgkinson said: “Banks must adapt or die. Mobile banking is clearly supplanting all other channels as the main portal between the bank and the consumer. Many banks have already risen to the challenge and invested in new infrastructure and pioneering initiatives, but others must follow suit and commit to building both immediate propositions and ongoing capability to keep up with the pace of change.
“Banks must overcome substantial infrastructural challenges, and reconcile consumers’ appetite for ease of use with greater security. Boldness will be required to overcome these challenges, and the only sure-fire winner will be the consumer.”
KPMG claims that in the short-term, the availability of mobile banking is a key factor when customers choose to switch provider. Adoption rates are highest in developing countries reaching 60-70 per cent in China
and India, as opposed to developed nations such as the US, UK and Europe.
Samsung and MasterCard
Samsung has partnered with MasterCard for the European launch of its contactless payments service Samsung Pay.
The Korean manufacturer will used MasterCard’s Digital Enablement Service (MDES) to allow users to make purchases through their mobile devices.
“Both organisations are committed to ground breaking tech innovations that will deliver on the promise of a true mobile wallet,” said global head of Samsung Pay Injong Rhee.
Samsung Pay is scheduled to launch in the US and Korea later this summer, and now the manufacturer and MasterCard will work with card issuers to bring the service to Europe, but the firm did not reveal a launch date.
MDES was announced in 2013 and MasterCard claims “millions” of accounts have been ‘tokenised’, which provides the security aspect of the transaction when making digital wallet services.
MasterCard Europe president Javier Perez added: “With the continued global growth and reliance on connected mobile devices, we are delighted to expand our relationship with Samsung by extending the reach of Samsung Pay and MDES to cardholders in Europe.
“Europeans have been leading the way in the adoption of new ways to shop, buy and make a payment. Through our strong partnership with Samsung we look forward to continuing to drive innovation in mobile commerce by creating simple and secure digital payment experiences for
The news comes following the UK launch of Apple Pay on July 14. The service is currently available in more than 250,000 locations across the country.