According to a new survey from the Federal Reserve, using mobile phones to make purchases at the point of sale remains fairly uncommon. Yet, the number of these transactions has gone up since 2011.
Specifically, 6 percent of survey respondents reported using a mobile phone to make a purchase in 2012. That's a pretty big jump from the 2 percent of respondents who reported using their phone at the POS in 2011.
In addition to POS purchases, the survey asked about other forms of mobile payments including bill payments, charitable donations, person-to-person payments, and other forms of payment using a mobile phone.
Overall, 15 percent of respondents said they had made some form of mobile payment in 2012. This was up from 12 percent in 2011. The most common form of payment was bill payment at 42 percent, followed by online purchases at 35 percent.
The percentage of mobile payers making those two types of payments actually declined slightly from 2011, but those making P2P payments increased to nearly 30 percent from 21 percent in 2011. Fifteen percent of respondents reported receiving money last year from another person via a mobile phone, up from 8 percent in 2011.
Young people are clearly out in front when it comes to mobile banking. Respondents aged between 18 and 29 account for 39 percent of mobile banking customers, although they represent just over 22 percent of mobile phone owners.
The 30 to 44 age bracket adds a further 36 percent of mobile banking users, though only 27 percent of all mobile device owners are in this age group.
Meanwhile, the 45 to 59 year olds make up 27 percent of all mobile device owners in the U.S., but represent only 19 percent of mobile banking adopters. Lastly, the over-60 age group shows a high degree of mobile phone ownership — 24 percent of the total — but this group makes up just 8 percent of those who say they have used mobile banking services.
While the use of mobile phones in personal financial management is growing, the Fed also found a large group of individuals who are consistently opposed to the idea. Of the mobile phone owners who did not use mobile banking, more than 50 percent said they have no interest in doing so, and were skeptical of the benefits of and security behind such technology. The survey concluded that fewer than one-quarter of mobile phone owners have any interest in using their phone to make purchases.
Your financial institution's existing customer base and strategic growth goals will be important as you consider the mobile solutions you'll need to roll out this year and into next. What is the average age of your customer? Do you want that to change? How can mobile solutions help you achieve that goal more quickly?
