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Consumers Prefer Single Mobile Banking/Payments App

Mobile banking apps have become one of the most popular self-service channels in banking, and usage figure from a recent survey revealed that approximately three out of five mobile device owners (59 percent) report using their banking app at least twice a week.

The survey, conducted online by The Harris Poll on behalf of mobile-first, fintech solutions provider Entersekt (Atlanta, Ga.) canvassed more than 1,900 U.S. adults who own mobile devices.

Apps for mobile payments are less widely used than banking apps, the results showed, with only a third of mobile device owners (33 percent) using them on a weekly basis. It seems that most Americans are familiarly with payment apps, but they have yet to become a feature of daily life to the extent that banking apps have. While nearly three-quarters of mobile device owners (71 percent) have used mobile payment apps, only 7 percent use payment apps daily compared to 20 percent who use banking apps daily.

“No payment app has managed to reach a tipping point in the United States where acceptance is guaranteed,” said Dewald Nolte, Entersekt’s chief commercial officer. “This has slowed adoption, together with lagging contactless infrastructure around interoperability.”

Over two-thirds of mobile device owners (68 percent) say they have more than one app for banking and payments, with 37 percent having three or more. Juggling so many apps, a majority of regular banking apps users (those using banking apps once a month or more) understanding found the idea of an all-in-one banking and payment app attractive. Over two -thirds (68 percent) of regular banking app users would “like to do all banking and payments via one single mobile app.” A similar majority (67 percent) claim they would be less likely to use cash or physical credit cards if they had such an app. The lure of an all-in-one combination app is stronger among younger adults (18 to 44 years) who regularly used banking apps: just over three-quarters (76 percen) want one, compared to only 50 percent of those aged 55 and over.

“Banking apps are the perfect launchpad for new payment capabilities,” said Gerhard Oosthuizen, chief technology officer at Entersekt. “Demand for specialized payment apps isn’t going away, especially for retail brands with superior loyalty programs, better-directed promotions and on-the-go experiences like low-friction peer-to-peer payments, self-checkout and in-apps ordering. Still, most people use very few of those apps regularly, while banking apps are a leading category, both in downloads and active users.

“That’s why we think American banks are so well placed to fast-track adoption through an expanded set of consumer enablement use cases.”

Methodolody

The survey was conducted online from Jan. 22-24 among 2,076 U.S. adults ages 18+, among whom 1,928 are mobile device owners, including 1,362 who use banking apps at least once a month. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.

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