Mobile Bill Pay Demand Is the Future
Imagine paying your house payment while riding in a double decker bus in London or making your Visa payment while waiting for a plane.
For Greg Meyer, community relations manager at the $1.2 billion Meriwest Credit Union in San Jose, Calif., those scenarios are beyond dreams. He believes they need to become realities for credit unions that hope to compete in an increasingly technological financial services landscape.
Still, the Javelin report had bad news for credit unions. Monahan said, as a group, they are desperately lagging behind big banks when it comes to mobile banking.
“Over twice as many consumers at the nation’s giant banks over $750 billion in deposits are using mobile banking than are those at credit unions,” Monahan said.
More fuel for mobile payments comes from the fast proliferation of tablet computers. Nearly 50 million Apple iPads had sold by the end of 2011 along with another 10 million Android tablets such as Amazon’s Kindle Fire, according to reports from both companies.
With their comparatively spacious screen real estate tablet, users are telling financial institutions they want to do much more on their devices, said John Flora, a spokesperson with Intuit Financial Services. High on that list is the demand to make payments. Users are also making it clear that they will take their business to the institutions that deliver the tools they want, Flora said.