Most Mobile Banking Users Pay Bills with Apps
Nearly three-quarters (73%) of mobile banking customers use mobile payment apps to pay bills, according to a new study from S&P Global Market Intelligence.
In addition, 41% of respondents said they use mobile payment apps for retail purchases, and 34% said they use them to collect and redeem rewards points.
In terms of person-to-person transactions, 23% of mobile banking users said they use payment apps to send money to friends. 12% said they have received money from friends through these apps. The latest update of the PayPal app allows for more convenient P2P money transfers, giving users the chance to organize their contacts into special groups to send and request money on the fly. Bank of America recently changed their mobile app to all for real time person to person payments. These updates and others like them could increase the use of this feature even more in the future.
A separate study from Fiserv revealed that consumers are now far more likely to pay bills through their phones than they were years ago. 33% of Internet users in the United States say they use mobile bill pay, up from 27% in 2014 and 6% in 2011. The biggest growth in the mobile bill payment market happened between 2013 and 2014, jumping from 16% to 27%.