M For Mobile recently created an infographic with an overview of mobile payments across Europe and around the globe:
Click here to view the full infographic.
Europe
New three-year deal represents minimum revenues to Monitise of 45m Euros; Acceleration of Buy Anything mobile services with continued development of Bank Anywhere, Pay Anyone
Monitise plc (LSE: MONI, the ”Company”) and Visa Europe are further strengthening their partnership with a new three-year commercial agreement spanning the development and deployment of Mobile Money payments and mobile commerce solutions for Europe’s leading financial institutions.
Heads of terms have been signed for the agreement, which covers license rights to all aspects of Monitise’s mobile technology.
The new relationship incorporates minimum revenues to Monitise of €45 million over the first three years with the potential for greater revenues as certain user generated thresholds are achieved. A further announcement will be made when the Company has entered into the final contractual agreement with Visa Europe (the “Agreement”).
At the same time the Agreement for this extended commercial partnership is entered into, Monitise will grant Visa Europe a warrant to purchase 43 million ordinary shares of one pence each in the Company (“Ordinary Shares”) at a price of 36.25p per Ordinary Share, representing the closing mid-market price of March 4, 2013. This warrant will be exercisable from the point at which the Agreement is entered into between Monitise and Visa Europe until August 4, 2014. In addition, the Company will grant Visa Europe a further warrant to purchase an additional six million Ordinary Shares at a price of one pence per Ordinary Share, being the nominal value.
Monitise has been working in partnership with Visa Europe since February 2011 to deploy mobile payments services to its more than 3,000 member banks and financial institutions across 36 countries. Visa Europe owns 7.5 percent of the shares in Monitise via an investment that forms part of its strategy to deliver increased value for financial institutions and consumers through enabling and supporting mobile payments.
Steve Chambers, Chief Information Officer at Visa Europe, said: “Mobile is changing the way we pay and buy. Visa continues to ensure that financial institutions remain at the center of this important landscape. We are delighted to be deepening our long-standing relationship with Monitise to ensure continued best-in-class services for Visa Europe members.” Read More »
This year, 590 million mobile phone users around the world will use their device for banking purposes, according to a new report from Juniper Research. By the end of 2017, that number will exceed 1 billion, representing more than 15 percent of the world’s mobile subscribers.
The Juniper study, “Mobile Banking: Handset & Tablet Market Strategies 2013-2017,” found that mobile banking is already proven and available in most areas of the world — especially within the developed regions — driven by strong consumer demand.
The report also revealed that most banks offer at least one mobile banking method — text messaging, mobile browser or mobile app — and many of the larger banks are now providing two, or even all three.
“From the banks’ perspective the triple play platform is advantageous as it avoids them having to switch suppliers for different approaches, as well as maximizing client reach,” said report author Nitin Bhas. “While messaging remains highly popular and relevant in the financial sector, apps will be the dominant access mode in developed markets with banks reporting an increased number of visits per month on their mobile apps.”
Other key findings from the Juniper report include:
- The ability to access banking information and make transactions “whenever you want” and “wherever you are” is a compelling proposition to most banking customers.
- Transactional mobile banking (e.g., conducting transactions, such as fund transfers) will reflect similar growth rates to informational mobile banking (e.g., getting account information, such as account balances).
- The developed markets of the Far East and China, North America and Western Europe will have the highest penetration of users in 2017.
In spite of a tough economic climate, the vast majority of retail banks around the world are still increasing their spending on innovation, with online and mobile services seen as priorities, according to a recent study from Infosys and Efma.
The poll of 300 bankers in 66 countries across EMEA, Asia-Pacific and the Americas shows that 73% increased their investment in innovation in 2012, despite budgetary constraints.
Asked the reason why they spent money on innovation, respondents most often cited attracting new customers and growing revenues.
When it came to spending by channel, branches received the highest proportion of discretionary IT budget at 27%, compared to 26% for online and 20% for mobile. However, there is a consistent view across the regions that online and mobile are the most important channels for innovation.
93% expect to offer mobile payment services and 89% plan to offer tablet banking apps within the next three years. The area of fastest growth will come from value-added services such as personalized location-based offers, a space where more than three quarters of banks will invest within three years, up from only eight percent today.
“The growing focus on mobile devices and online innovation reinforces the rapid adoption of these channels. By offering increased interactivity and personalization, they clearly have the potential to drive growth,” said Patrick Desmarès, secretary general, Efma.
Half of Britain’s financial institutions believe that mobile banking is already important to their customers, while 71% predict it will be by 2015, according to a recent survey by Fujitsu.
According to the study, which surveyed 50 CIOs in the UK investment, wholesale and retail banking sector, the main reason for putting resources into mobile is its potential as a new revenue stream; additionally, 75% cited customer retention and loyalty as reasons to invest in mobile banking.
Respondents also opined that mobile banking provided a better customer experience.
“The reputational crisis that the financial services industry has been through has tested customer loyalty”, said Anthony Duffy, director of retail banking at Fujitsu UK & Ireland. “Mobile banking offers a growing route to customer acquisition and to enhance satisfaction. There is a need for financial institutions to reinvigorate their relationships with customers – and mobile provides a great opportunity for them to do this.”
A recent survey revealed that more than a third (36%) of UK consumers believe that they will be doing all of their banking through smartphones by 2020. Additionally, two-thirds of UK banks predict that all UK consumers will be using mobile banking in some form by 2017, and 93% feel that “mobile is the future.”
According to the survey conducted by Vanson Bourne on behalf of Avanade, two-thirds (66%) of UK consumers felt that their bank could do more for them; among the most popular improvements being “making more of available technology” (19%). Thirty-two per cent of consumers wanted more mobile apps, and 31% wanted more personalized services.
Of those consumers who said that their bank fails to make the most of available technology, 49% aged 18-to-25 wanted more mobile apps. This is a key demographic for banks, as this is the age when critical brand loyalty can be won or lost.
