With the growing user acceptance of 'push' mobile banking and an exponential increase in smartphone adoption will drive users of transactional mobile banking services up from 185 million in 2011 to over 550 million in 2016, according to Juniper Research's 'Mobile Banking for Developed & Developing Markets' report.
The report found that mobile phone banking is increasing in popularity, owing to the leverage of advanced functionalities such as banks bundling MBPP (Mobile Bill Presentment and Payment) services within their overall mobile banking platform and additional momentum from easy-to-use smartphone apps.
It also finds that users who do not make bill payments are expected to continue conducting transactions like before as they become used to it.
Mobile life styles will see about 80% of total mobile banking customers paying their bills through a mobile device by 2016.
Juniper's Research Director Windsor Holden said customers are becoming increasingly more confident in using basic informational mBanking services.
"The natural progression is to engage in transactional banking, as they demand tighter control over their finances within a turbulent economic environment and busier lifestyle which are at odds with a 9 to 5 branch-based service," added Holden.
The report, however, warns that security concerns, which have increased manifold due to spyware and malware, will make elderly people wary of mobile transactions.
The report also found that triple-play solutions (i.e. SMS, Web browser, and app) experience the highest adoption rates; transaction frequency will be higher in developing regions where users have fewer alternative options for bill payment, given the limited physical branch presence; and increased usage of transactional services will boost other facets of mobile commerce.