SAN FRANCISCO (3/19/08)--Speed and convenience drive the demand for mobile banking services, but only one in 10 consumers is willing to adopt mobile person-to-person (P2P) payment services, according to recent research. Security concerns remain the leading deterrent, with 63% of consumers surveyed saying enhanced security would encourage them to use the mobile P2P payments. The online survey was conducted by Javelin Strategy & Research, a financial services research firm based in San Francisco. "Perceived security threats are definitely the sticking point for mobile P2P payments right now," said Mary Monahan, partner and senior analyst with Javelin. "Once the safety and access hurdles are cleared, we expect this technology will become part of everyday life." Even tech-savvy consumers, while interested in mobile P2P payments, strongly fear the loss of personal information (62%) and fraudulent transfers (52%), said Javelin. Credit unions can use some of the findings to shed light on the interests of different member segments. Those most willing to employ mobile payment services were 25 to 44 years old and/or earning more than $100,000. Thirty-nine percent of 45- to 55- year-olds said that anytime, anywhere access to their money was important--but only 14% would use the mobile P2P payment. The 55- to 64-year-old group surveyed cared more about sending and receiving money quickly than any other age group (39%), but it was only 11% likely to use the mobile service. For consumers aged 18 to 23, about 23% said that avoiding cash and checks was the primary motivation to adopt the service. The report outlines two key consumer segments that remain largely untapped: unbanked consumers without checking or savings accounts, and consumers who send remittances to other countries. Other key findings:
* Consumers must have a strong sense of security in the mobile channel before they will adopt additional mobile banking services like mobile P2P. * Financial institutions, through consumer education, must provide convincing evidence of the safety and security of member/customer information across the mobile channel. * Mobile bankers and tech-savvy consumers will be early adopters of mobile P2P payments and will be critical in driving overall adoption because recipients of their transfers will also be pulled into the market. * These payments could lead to mobile merchant payments and mobile shopping, and with advances in mobile browser technology, mobile devices could eventually replace the use of credit or debit cards for purchases.