What Drives Mobile Banking and Payments?

Across the globe, one segment of consumers, called "smartphonatics" by researchers at Aite Group, is driving the demand for mobile payments and banking.

The differences in mobile payments and banking behavior between Smartphonatics and other consumers are significant.

In 2012, 70 percent of "smartphonatics" worldwide have used their mobile device to make a payment, and 80 percent have used their device for banking purposes.

In contrast, less than a quarter of other consumers have made a mobile payment, and only a third have completed mobile banking transactions.

But the relationship here is correlative, not causal, Aite Group suggests."The smart phone is simply an enabler, not a driver, of changing behavior," Aite Group researchers say. In other words, heavy mobile payment and mobile banking behavior is not "caused" by smart phone ownership.

Rather, some people who own smart phones are more inclined to find value in doing so. The notion of "early adopters" is relevant here, as well as the notion of customer segments and value. Where banking is difficult, and a smart phone enables convenient banking, smart phone users will adopt at high levels.

Where banking infrastructure is highly developed, smart phone users do not have as much incentive to use mobile banking or payments products.