Fiserv, Inc. has announced that it has integrated its Popmoney person-to-person payments service with its widely used Mobilit mobile banking and payments platform. P2P payments can now be initiated directly from a user’s mobile banking account, enhancing the functionality of mobile banking by enabling consumers to pay people they know or owe using their email address or mobile phone number. Consumers can also manage incoming payments and review their transaction history.
More than 16 billion person-to-person payments are made each year, according to an analysis done by McKinsey & Company on behalf of Fiserv. While most of these payments are currently made with cash or checks, electronic payments between people, also known as “social payments,” are an emerging trend. Tablet banking and mobile banking users have indicated that they are interested in making these types of payments, with the April 2012 Forrester Research, Inc. report, “US Bankers Want More From Digital Banking,” showing that 51% of tablet banking users and 46% of mobile banking users would like to make person-to-person payments via their devices.
With mobile banking adoption surging and consumers beginning to utilise the service in more sophisticated ways, it has become increasingly important for financial institutions to deliver a unified set of mobile banking and payments options. Transactional capabilities, such as the ability to deposit checks, pay bills and make person-to-person payments, are increasingly in demand, and delivering them drives convenience and satisfaction with the service and the financial institution. According to the 2012 Fiserv Consumer Trends Survey, the number of U.S. households using mobile banking increased by 33 percent from 2011 to 2012, to almost 25 million households.
“As mobile bankers grow more comfortable using mobile features to conduct banking activities, mobile money movement will increase in usage and value to users,” writes Peter Wannemacher, analyst, eBusiness and Channel Strategy, Forrester Research, Inc. in the April 2012 report, “2012 US Mobile Banking Functionality Rankings.” “In the near future, banks will differentiate by the mobile capabilities they offer users, including P2P, expedited payments, and the ability to manage recipients.”
“For many consumers, their financial institution is the ideal hub from which to manage the many types of payments they make each month — from paying bills to paying other people,” said Rahul Gupta, group president, Digital Payment Solutions, Fiserv. “The integration of Popmoney with Mobiliti gives financial institution customers another convenient way to access person-to-person payments, which will drive adoption and use of both services.”
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