Frost & Sullivan analysed mobile banking and mobile payments

According to the new analysis from Frost & Sullivan, it is expected that the mobile financial services markets in the United States will reach $1.46 billion in 2013.

The nation's leading financial institutions utilizes mobile banking services more and more for all types of electronic transactions – including commerce. Trends indicate that mobile banking and mobile payment services will see deeper market penetration in the near future. Though mobile banking and mobile payments are now two distinct, discrete categories of mobile financial services, the future will see the gradual integration of these two categories into a single interface. Deciding upon the right business models, handing revenue settlements, designing and offering new user interfaces, and integrating technology are some of the issues that need to be addressed. To guarantee the safety of providing card numbers or bank account information directly on mobile devices the end-users should be also supplied with the optimized levels of security afforded by the online environment.

Vikrant Gandhi, Frost & Sullivan Strategic Analyst, explains: “Alternate payment mechanisms such as credit cards, stored value accounts, and on-bill payments have helped broaden the scope of m-commerce and go beyond micro-transactions. Unlike the case of online financial processing systems, the biggest challenge is to gain subscribers' confidence and persuade them to use their mobile phones for sensitive financial transactions.”