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FOS Blog

23 Mar

Sending Payments in a Digital Age

Sending Payments in a Digital Age

If you utilize mobile banking you undoubtedly have seen and more than likely have used the payments options your bank provides. But how many of us that use mobile banking truly utilize these payments solutions or others like it? Venmo, Zelle, Apple Pay, Square and PayPal all offer alternative ways to send money to other parties and the Peer to Peer (P2P) payments market has continued to grow exponentially in recent years. Research has shown that consumers expect these services from their banking institutions and have become as normal as seeing your balance. But how many of us truly are super users?

A recent survey conducted by the U.S. Bank revealed that nearly half (47%) of consumers prefer the use of digital payment apps versus cash. In a similar online survey conducted by the American Banking Association (ABA), it was noted that consumers trust banks the most to safeguard their payments, compared to only 12% who place their trust in alternative fintech providers.

Not to be out done the Federal Reserve also conducted a study and that while there is a strong a consumer sign-up for mobile banking the usage remains very rudimentary – checking balances, making internal transfers versus more advanced functions. Mobile banking is offered by 89% of banks and credit unions but only a small percentage of those enrolled are actively using the services.

There is no doubt that banks that offer a robust mobile platform enjoy improved customer satisfaction rates but what is their return on investment? There really is no clear answer for that question and banks have realized that it is more about engaging the customer. Providing a more seamless and less time consuming customer experience builds customer loyalty and growth potential. With that in mind banks need to be on the cutting edge of these payment options regardless of consumer consumption. The growth potential and building competitiveness for the consumers payment solution is suggests that banks cannot afford to not bank on payment solutions. Hopefully, mobile initiatives are on your Bank’s plan in order to keep your customers happy.

For additional information contact Chad at