The mobile banking revolution truly has swept across the globe.
While Norway has the highest proportion of mobile banking users on the continent – at 42% – users can be found from Paris to Podgorica and Berlin to Belgrade. In China, it is estimated that 47% of phone users have mobile wallets while their popularity in India has also skyrocketed.
According to the Reserve Bank of India , mobile banking services experienced a growth of 92% in volume between 2017 and 2018, while the number of registered customers rose from 163 million to 251 million during the same period. The number of users of the three largest mobile banking platforms; We Chat Pay, AllPay and PayPal, exceeded 1.2 billion in 2017.
The uses of mobile banking are varied and reflect the advantages that the concept brings. Namely, that it allows users to transfer funds from their bank account to another at any time that they have internet connection, regardless of where they are. It is also more cost effective than making a bank-to-bank transfer and usually offers participants a range of other on-the-go services, such as checking their account balance or studying their recent transactions.
Understandably a favorite among businesses, mobile banking has also benefited those on the fringes of society. The Mobile Money for Resilience programme which has been set up in Jordan by the Bill and Melinda Gates Foundation allows Syrian refugees who do not have access to a physical bank the chance to be financially independent. In Stockholm, Sweden, residents can buy the Situation Sthlm, a magazine sold by its homeless population, via iZettle’s mobile banking platform. The money goes direct to the seller, who also does not need to have set up a bank account to receive the funds.
So, what are the problems?
If a user loses their mobile phone, they can leave themselves at risk of fraud after research from Swiss mobile banking firm Aximetria found that between 30-40% of users do not lock their phones.
Date: August 08, 2019