The proliferation of smartphone technology has changed the way consumers bank and make everyday purchases. Now, a new study conducted by financial services consulting firm Mercatus LLC has quantified this growing trend.
Those between the ages of 18 to 25 have tripled their use of mobile banking services between 2008 and 2009 from 7% to 21% according to the company’s preliminary survey results. In contrast, those aged 65 and older haven’t been as quick to incorporate mobile banking into their everyday lives, with mobile banking usage holding steady at 3% for both years for this age segment.
Overall, the study found that consumers in all age brackets had increased their use of mobile banking technologies from 7% to 11% between 2008 and 2009. Here’s how it broke down by age:
As far as mobile payments go, the rate at which consumers make mobile payments also jumped significantly. Again, those in the youngest age bracket—18 to 25—were quicker than most to adopt mobile payment platforms and increased their usage from 7% to 18%. Also similar to mobile banking, those aged 65 and older were less likely to use their mobile phones to make payments and had actually decreased the rate at which they used such services from 2% in 2008 to just 1% a year later.
Mobile Banking, Mobile Payments Take Flight:
Banks have been quick to parlay the popularity of smartphones into new channels to reach consumers. In fact, a recent Mobile Money Study showed that 70% of smartphone users access mobile banking and payment services. Another study conducted by eMarketer showed that by the year 2015 at least half of mobile phone users would be conducting transactions from their mobile phones.
If you do use your mobile phone frequently to make payments then linking it to your credit card could be your best bet. A recent study showed that mobile payments linked to credit cards offer the most federally-mandated consumer protections of any other payment option available, including debit cards or bank accounts, prepaid cards and even direct-to-mobile billing options.