Business tipped to be more mobile
As consumers embrace smart phones, the number of Australians with mobile banking has rapidly grown. The number of mobile banking customers surged to 6 million earlier this year, and is tipped by banks to eventually overtake banking through traditional websites.
But for all the growth in customer numbers, new figures highlight that mobile transactions are still relatively small in value terms.
The Market Intelligence Strategy Centre, a consultancy, said mobile banking activity accounted for 40 per cent of all digital banking log-ons, but just 9.6 per cent of total digital transactions.
The finding comes as the banks rush to offer more advanced mobile products to consumers and small businesses, such as "digital wallets" that allow consumers to use their phones as credit cards.
Banks such as Commonwealth have also heavily promoted consumer payment systems such as Kaching, which allows instant money transfers.
But the key driver of future growth is tipped to be small business users, which can use mobile banking applications for larger transactions, such as paying bills or their staff.
A spokesman for MISC said mobile payment transactions were likely to rise strongly over the next 18 months, as there had been signs of significant growth among small and medium enterprises.
Frequently Asked Questions about this Article…
The article says the number of Australians using mobile banking surged to about 6 million earlier this year, and banks expect mobile banking adoption to keep growing as more customers manage finances on the go.
According to the Market Intelligence Strategy Centre (MISC), mobile activity accounts for roughly 40% of all digital banking log‑ons but only about 9.6% of the total value of digital transactions, so mobile is a large share of access but a much smaller share of transaction value.
Yes. The article notes mobile banking still accounts for under 10% of the value of digital transactions, despite rapid growth in the number of mobile customers.
Banks are rushing to offer more advanced mobile products such as digital wallets that let consumers use phones like credit cards. The article also mentions Commonwealth promoting consumer payment systems like Kaching for instant money transfers.
The article references the Market Intelligence Strategy Centre (MISC) for the data and commentary, and mentions Commonwealth (the bank) promoting payment tools such as Kaching.
The article says small business users are tipped to be the key driver of future growth because they can use mobile banking for larger transactions—for example, paying bills or staff—which would raise the overall value of mobile transactions.
Yes. A MISC spokesman in the article said mobile payment transactions are likely to rise strongly over the next 18 months, citing signs of significant growth among small and medium enterprises.
The article suggests investors should watch banks' rollout of advanced mobile products (like digital wallets and instant‑transfer tools such as Kaching) and the uptake of mobile banking by small businesses—both are highlighted as factors that could lift mobile transaction volumes and value.
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