Consumers and Mobile Financial Services
March 2014
Print- Preface
- Executive Summary
- Introduction
- Accessing Financial Services
Accessing Financial Services
Survey respondents were given a set of screening questions that asked if they had access to a bank account, the Internet, and a mobile phone or smartphone. They were further asked about the various ways in which they access their financial accounts. Of the 89 percent of consumers who have a checking, savings, or money market account, the majority use some form of technology to interact with their financial institution. (The Board survey also included questions about attitudes toward alternative financial services; see box 2 for more information.)
As shown in figure 2, the most common way of interacting with a financial institution remains in-person at a branch, with 82 percent of consumers who have a bank account reporting that they had visited a branch and spoken with a teller in the past 12 months. The second most common means of access in the past 12 months was using an ATM at 75 percent, followed by online banking at 72 percent. Approximately one-third of all consumers with bank accounts used telephone banking, while 30 percent used mobile banking.
Note: The denominator is all respondents with a checking, savings, or money market account for each question, regardless of mobile phone ownership.
Box 2. Alternatives to Traditional Banking and Financial Services
As in its previous surveys, the Board's 2013 survey included questions regarding consumers' usage and attitudes toward alternative financial services, such as payday loans and prepaid cards.
Products such as payday loans and reloadable prepaid cards are becoming increasingly used, as people look outside mainstream financial products to meet their financial needs. However, these alternatives to traditional banking may have relatively high interest rates and service charges or fees, which can vary widely depending on the specific product used. This can make alternative financial services a costly way of managing household finances if not used carefully. Moreover, consumers may have fewer regulatory protections on some non-traditional financial services when problems arise.
Prepaid Cards
Prepaid cards have remained the most-used alternative financial service over the past several years. The share of respondents who report using a general purpose card was 15 percent in 2013, while 8 percent use a government-provided card, and 3 percent use a payroll card. Just over one-fifth (22 percent) of all consumers surveyed use some type of prepaid card.
Some general purpose prepaid cards can be reloaded with money and used as an alternative to a checking account. Among respondents with general purpose prepaid cards, 38 percent report that it is reloadable, and of those with reloadable cards, 50 percent added money to their cards in the previous month.
Only 6 percent of respondents report having used a payday loan, paycheck advance, or deposit advance service in the past 12 months. As shown in figure A, respondents report that these payday loans or paycheck advances were used primarily for daily essentials such as utility bills (53 percent); for food, groceries, and other living expenses (51 percent); for emergency expenses (39 percent); for rent or mortgage payments (38 percent); or for miscellaneous bills (37 percent). Almost one in four respondents deposited the money from the payday loan into their bank account in order to avoid overdraft charges. The median payday loan borrower took out two loans in the past 12 months, while the average number of payday loans among borrowers was four.
According to respondents, the main reasons for using payday loans or advances instead of other, more traditional financial services are perceptions that the borrower didn't think they would qualify for a bank loan or credit card (28 percent), that the location of the payday lender was more convenient (19 percent), that the payday loan was quicker to get than a bank loan or credit card advance (19 percent), and it would be easier to get a payday loan than to qualify for a bank loan or credit card (15 percent). One in ten borrowers used a payday loan because they didn't think that banks made loans for small amounts of money, and only 3 percent felt more comfortable going through a payday lender than using a bank, as shown in figure B.
Mobile Banking
The Federal Reserve survey defines mobile banking as "using a mobile phone to access your bank or credit union account. This can be done either by accessing your bank or credit union's web page through the web browser on your mobile phone, via text messaging, or by using an app downloaded to your mobile phone."
The adoption of mobile banking has continued to increase in the past year. Just over 33 percent of mobile phone users in the survey report that they used mobile banking in the past 12 months. This is an increase from the nearly 28 percent of mobile phone users who indicated that they used mobile banking in the 2012 survey, and 21 percent in the 2011 survey. Use of mobile banking is substantially higher for smartphone users at 51 percent, up from 48 percent in the 2012 survey, and 42 percent in the 2011 survey. The higher incidence of mobile banking adoption among smartphone users suggests that as smartphone adoption continues to increase, so too will use of mobile banking.
Among those consumers with mobile phones who do not currently use mobile banking, 12 percent report that they will "definitely" or "probably" use mobile banking in the next 12 months. An additional 18 percent of those who report that they are unlikely to use mobile banking in the next 12 months report that they will "probably" adopt mobile banking at some point.
Although previous surveys suggest that the reported adoption intentions of the respondents do not perfectly reflect subsequent behavior, there is a strong correlation between the planned use of mobile banking and subsequent adoption. Using the panel of respondents to both the 2012 and 2013 Board surveys, it is possible to compare the reported mobile banking adoption intention over the next 12 months from the 2012 survey to the reported use of mobile banking in the 2013 survey. Of those consumers who reported in 2012 that they will "definitely" or "probably" adopt mobile banking in the next 12 months, 37 percent had adopted mobile banking one year later. Conversely, for those who indicated that they "probably will not" and "definitely will not" adopt mobile banking, 19 percent and 5 percent, respectively, had adopted mobile banking in 2013. In total, 14 percent of those who reported that they were not mobile banking users in 2012 (7 percent of all mobile phone users) reported being mobile banking users in 2013. However, 19 percent of those who were mobile banking users in 2012 (3 percent of all mobile phone users) reported that they had not used mobile banking in 2013. Among panel respondents, mobile banking usage increased from 27 percent in 2012 to 33 percent in 2013.
The 2012 survey included a group of respondents who indicated that they would "definitely" or "probably" adopt mobile banking in the coming year. For that group of respondents who believed they were "likely" to adopt mobile banking, the most significant difference between those who actually did adopt mobile banking by the 2013 survey and those who did not was that the adopters were more likely to own a smartphone. Of this likely-to-adopt group, 40 percent with smartphones used mobile banking, while none of the people with feature phones (phones that don't have Internet access) used mobile banking. In both the panel and cross-sectional data, smartphone users are more likely to adopt mobile banking than non-smartphone users.
Use of mobile banking continues to be highly correlated with age (table 2). In the 2013 survey, individuals between ages 18 and 29 account for approximately 39 percent of mobile banking users, relative to 21 percent of mobile phone users overall. The next age group (30 to 44) accounts for 34 percent of mobile banking users, relative to 26 percent of mobile phone users overall. Those ages 45 to 59 account for 21 percent of mobile bankers, relative to 28 percent of mobile phone users. Finally, individuals ages 60 and over account for only 7 percent of all mobile banking users, but represent 25 percent of all mobile phone users. In 2012, those ages 18 to 29 accounted for 39 percent of mobile bankers, while those ages 45 to 59 accounted for 19 percent, and those ages 60 and over accounted for only 8 percent.
Reinforcing the data from previous surveys, minorities continue to be more likely to adopt mobile banking than non-Hispanic whites. In particular, Hispanic mobile phone users show a disproportionately high rate of adoption of mobile banking (table 3), comprising 19 percent of all mobile banking users relative to 14 percent of mobile phone users overall. Conditional on owning a mobile phone, use of mobile banking remains unrelated to household income or education level, with each group making up a similar share of mobile banking users as they do mobile phone users.
In 2013, the most common mobile banking activity continued to be checking financial account balances or transaction inquiries, with 93 percent of mobile banking users having performed this function in the past 12 months (figure 3). This was followed by transferring money between their own accounts, performed by 57 percent of users. In addition, 53 percent of mobile banking users received e-mail alerts from their financial institution, and 43 percent received text message alerts. Making online bill payments from a bank account using a mobile phone was the next most common activity (done by 44 percent of mobile banking users), followed by locating an in-network ATM (done by 41 percent). Further, using mobile banking to deposit a check by phone, known as "remote deposit capture," is becoming highly prevalent, with 38 percent of mobile banking users having performed this activity in the past 12 months. Mobile banking users appear to be using mobile applications to conduct their banking transactions, as 72 percent have installed such applications on their phones.
Figure 3. Using your mobile phone, have you done each of these in the past 12 months? (Among mobile banking users)
Among mobile banking users, the frequency of mobile banking use has decreased somewhat over the past year. The median reported usage declined from six times per month in 2012 to four times per month in 2013.
A significant fraction of mobile banking users have only recently adopted the technology. Although the majority of mobile banking users report that they started using it more than one year prior, 9 percent report that they adopted mobile banking in the last six months, and 20 percent report that they adopted mobile banking between six and twelve months prior.
In the past year, the convenience of mobile banking has overtaken smartphone adoption as the driving force behind mobile banking adoption. Indeed, 37 percent of consumers indicate that the convenience was the main reason they started using mobile banking, compared to 32 percent of consumers who said getting a smartphone was the main reason. A further 16 percent of consumers indicated that the timing of their adoption of mobile banking was driven by their bank starting to offer the service.
Among those consumers with mobile phones who do not currently use mobile banking, several reasons for not using the service predominate--namely, they believe that their banking needs are being met without mobile banking (89 percent), they don't see any reason to use mobile banking (75 percent), and they are concerned about security (69 percent) (figure 4). The small size of the mobile phone screen and lack of a smartphone are each cited by 44 percent of consumers as reasons they do not use mobile banking. Less commonly cited reasons include a lack of trust in the technology to process transactions properly (35 percent) and the difficulty associated with using mobile banking (17 percent).
Figure 4. What are the main reasons you have decided not to use mobile banking? (Among those who do not use mobile banking)
Consumers who expressed concerns about the security of mobile banking were asked to specify what aspect was of greatest concern. Some reported fears of data interception (25 percent), phone "hacking" (12 percent), and lost or stolen phones (8 percent). Other consumers' areas of greatest concern were someone using their phone without permission to access their account (5 percent), companies misusing personal information (3 percent), and malware or viruses being installed on their phone (2 percent). However, the most common response was that they were concerned with all of those security risks occurring (45 percent).
When consumers who don't use mobile banking were asked what mobile banking activities they would be interested in performing if their concerns were addressed, their responses largely mirrored those of current users. Checking financial account balances or recent transactions was the most commonly cited (39 percent), followed by receiving text message alerts from their bank (29 percent), transferring money between accounts (27 percent), depositing checks electronically (26 percent), and making bill payments (25 percent). However, 51 percent of those who do not use mobile banking indicated that they had absolutely no interest in performing any mobile banking activities.
Table 2. Use of mobile banking in the past 12 months by age
Percent, except as noted
| Age categories | No | Yes | Total |
|---|---|---|---|
| 18-29 | 11.4 | 39.1 | 20.6 |
| 30-44 | 22.3 | 33.7 | 26.1 |
| 45-59 | 31.7 | 20.7 | 28.1 |
| 60+ | 34.5 | 6.6 | 25.2 |
| Number of respondents | 1,540 | 640 | 2,180 |
Table 3. Use of mobile banking in the past 12 months by race
Percent, except as noted
| Race/ethnicity | No | Yes | Total |
|---|---|---|---|
| White, non-Hispanic | 73.8 | 62.5 | 70 |
| Black, non-Hispanic | 7.4 | 11.1 | 8.6 |
| Other, non-Hispanic | 5.6 | 5.9 | 5.7 |
| Hispanic | 11.8 | 19.2 | 14.3 |
| 2+ races, non-Hispanic | 1.4 | 1.3 | 1.3 |
| Number of respondents | 1,540 | 640 | 2,180 |
Mobile Payments
The Federal Reserve survey defined mobile payments as "purchases, bill payments, charitable donations, payments to another person, or any other payments made using a mobile phone. You can do this either by accessing a web page through the web browser on your mobile device, by sending a text message (SMS), or by using a downloadable app on your mobile device. The amount of the payment may be applied to your phone bill (for example, Red Cross text message donation), charged to your credit card, deducted from a prepaid account, or withdrawn directly from your bank account."
The use of mobile payments continues to be less common than the use of mobile banking. Based on the responses to the broad definition of mobile payments listed above, only 17 percent of mobile phone users report that they made a mobile payment in the past 12 months, up slightly from 15 percent in 2012, and 12 percent in 2011. However, rates of mobile payments usage are much higher when asked about each of these activities individually.
Among all smartphone owners, 30 percent made an online purchase using their phone in the past 12 months, 24 percent paid bills online, 17 percent paid for a product or service at a store, 15 percent transferred money directly to another person's financial account, and 12 percent received money from another person. Far less common was making a payment by text message (5 percent) or paying for parking, a taxi, or public transit (4 percent).
Focusing only on those who reported that they had made a mobile payment in the past 12 months, the most common mobile payment activity is paying bills (66 percent), followed by making online purchases (59 percent). The next most-common activities reported by mobile payment users--at 39 percent each--are paying for a product or service at a store and transferring money directly to another person. Almost 30 percent received money from another person using a mobile phone, while 13 percent made a payment by text message, and 9 percent paid for parking, a taxi, or public transit using their mobile phone.
Mobile payments are most commonly funded using debit cards (54 percent), credit cards (42 percent), directly from a bank account (40 percent), or from an account at a non-financial institution such as PayPal (9 percent). Only 5 percent of mobile payment users report that they used a general purpose prepaid card, and 4 percent had the charge directly applied to their phone bill. The type of payment used to fund the mobile purchase has implications for the consumer protections the payer is afforded on the transaction, as different payment sources are covered by different consumer regulations and regulatory agencies.5 (See box 3 for a discussion of mobile wallets and consumer protections.)
Overall, using mobile phones to make retail purchases has become much more commonplace. In 2013, 17 percent of all smartphone users made POS purchases with their mobile phone in the past 12 months. This represents a near tripling in the incidence of POS mobile payments among smartphone users from the 6 percent rate found in the 2012 survey. However, among those who have made a POS mobile payment in the past 12 months, only 43 percent had done so in the preceding month, and less than a quarter had made more than two such payments.
Scanning a QR code displayed on a mobile phone is the most common method that consumers use to make mobile payments at the point-of-sale, and it is used by 39 percent of those who made mobile POS payments. This is followed by 18 percent who made a payment using a mobile app that doesn't require scanning a barcode or tapping their device, and 14 percent of mobile payment users that made a payment by waving or tapping their mobile phone at the POS terminal. Thus, despite the increasing availability of phones equipped with near field communication (NFC) chips, it appears that non-NFC-based mobile payment services currently dominate the market.6 This prevalence of non-NFC payment services is highlighted by the reported usage of several different services by those making mobile POS payments, with 14 percent having used Starbucks mobile payments in the past 12 months, 11 percent having used PayPal In-Store Payment, 7 percent having used Google Wallet, 5 percent having used Square Wallet, and 1 percent or less having used Isis, Tabbedout, or Dwolla.7
There continues to be only modest interest in the use of mobile phones to pay for purchases in a store among the broader mobile phone user population. Less than a quarter of all mobile phone users say that they already make POS mobile payments (2 percent), or are "likely" (15 percent) or "very likely" (6 percent) to use mobile POS payments if offered the opportunity. Almost half of mobile phone users (44 percent) say that they are "very unlikely" to use mobile POS payments.
Mobile payments broadly defined are disproportionately used by younger consumers (table 4). Individuals ages 18 to 29 account for 36 percent of mobile payment users, relative to 22 percent of all mobile phone users, while individuals ages 30 to 44 account for a further 33 percent of mobile payment users, relative to 27 percent of all mobile phone users. Those ages 45 to 59 account for 27 percent of all mobile phone users, but only 21 percent of mobile payment users. Those ages 60 and above make up another 24 percent of mobile phone users, but account for only 10 percent of mobile payment users.
Table 4. Use of mobile payments in the past 12 months by age
Percent, except as noted
| Age categories | No | Yes | Total |
|---|---|---|---|
| 18-29 | 18.9 | 35.7 | 21.8 |
| 30-44 | 25.3 | 32.6 | 26.6 |
| 45-59 | 28.6 | 21.4 | 27.4 |
| 60+ | 27.2 | 10.4 | 24.3 |
| Number of respondents | 1,956 | 372 | 2,328 |
Conditional on owning a mobile phone, minorities are disproportionally likely to adopt mobile payments. Non-Hispanic whites account for 49 percent of mobile payment users but make up 68 percent of mobile phone users (table 5). Hispanics account for 22 percent of all mobile payment users relative to 14 percent of all mobile phone users, and 21 percent of mobile payment users are non-Hispanic black compared to their 11 percent share of the mobile phone user population.
Table 5. Use of mobile payments in the past 12 months by race
Percent, except as noted
| Race/ethnicity | No | Yes | Total |
|---|---|---|---|
| White, non-Hispanic | 72.1 | 49 | 68.1 |
| Black, non-Hispanic | 8.2 | 21.2 | 10.5 |
| Other, non-Hispanic | 5.8 | 5.3 | 5.7 |
| Hispanic | 12.8 | 22.1 | 14.4 |
| 2+ races, non-Hispanic | 1.1 | 2.4 | 1.3 |
| Number of respondents | 1,956 | 372 | 2,328 |
As with mobile banking, there is no clear correlation between mobile payments usage and income or education level among those who own a mobile phone.
Of current mobile payment users, 18 percent started using mobile payments in the prior six months, while 20 percent began using mobile payments six to twelve months prior to the survey. A further 18 percent report that they started using mobile payments in the prior one to two years, and 15 percent report that they began using mobile payments more than two years prior to the survey. A significant number of users are unable to recall when they began using mobile payments (25 percent).
Similar to the findings for mobile banking usage, convenience is the main reason most people started using mobile payments (37 percent). Getting a smartphone is also a major driver of mobile payment adoption (26 percent). The ability to make mobile payments becoming available to them was cited by 14 percent of users, while 7 percent indicated that they began using mobile payments because they became comfortable with the security.
Among those who do not use mobile payments, the main reason they have not adopted the technology is that they see little value or benefit from using mobile payments: 76 percent report that it is easier to pay with other methods, and 61 percent report that they do not see any benefit from using mobile payments. Concerns about the security of mobile payments are also a significant reason why people do not use them (63 percent), as is a lack of trust in the technology (44 percent). Not having the necessary feature on their phone was cited by 46 percent of consumers, while 37 percent said that they don't understand mobile payments, and 27 percent said the places they shop don't accept mobile payments (figure 5).
For those worried about the security of mobile payments, the aspects of concern largely mirror those reported by those concerned about the security of mobile banking. The main fears associated with mobile payments include the interception of payment information (22 percent), phone "hacking" (10 percent), lost or stolen phones (9 percent), misuse of personal information (4 percent), and malware or viruses installed on their phone (2 percent). As with mobile banking, the most common response was that they were concerned with all of those security risks occurring (52 percent).
When consumers who do not use mobile payments were asked to indicate all the mobile payment activities they would have an interest in using if their concerns about the technology were addressed, 62 percent indicated that they simply had no interest in using mobile payments even if their concerns were addressed. Of the potential activities of interest by others, receiving/using coupons on their phone was the most commonly cited (22 percent), followed by paying bills online using their phone (21 percent), receiving specials and discount offers (20 percent), and making online purchases (17 percent). Using a mobile phone at a cash register to make POS purchases was of interest to 16 percent, while 13 percent were interested in using their phone as a virtual wallet. Consumers also expressed some interest in accepting payments from another person (12 percent) as well as using mobile payments to transfer money to another person in the United States (11 percent) and to friends or relatives in other countries (4 percent).
All mobile phone users were asked about the likelihood that they would use their mobile phone as a means of payment at the POS if the service were available to them. Among mobile phone users, 6 percent would be "very likely" to use this type of mobile payment and 16 percent are "likely" to use it. However, the vast majority of consumers indicated that they would be "unlikely" (30 percent) or "very unlikely" (44 percent) to use their mobile phone to make purchases in a store.
Consumers appear more inclined to believe that mobile contactless payments will become a major form of payment than that they themselves would adopt such technology. When consumers were asked whether they thought that mobile contactless payments will become a major form of payment in the next five years, more than half of consumers reported that it is "very likely" (17 percent) or "likely" (40 percent). This is an increase from the 15 percent who responded "very likely" and 35 percent who responded "likely" in November 2012.
When those with a smartphone were asked if they plan to use their mobile phone to make a payment in a store in the next 12 months, 2 percent said they "definitely will" and 15 percent said they "probably will." The majority of smartphone users say that they "probably will not" (44 percent) or "definitely will not" (38 percent) use their phone to make an in-store payment.
Box 3. Mobile Wallets and Consumers
In 2013, mobile point-of-sale (POS) purchases tripled in usage from the previous year, with 9 percent of all adults in the U.S. and 17 percent of all smartphone users having made such a payment in the past 12 months, according to the Board's survey. Many of these mobile POS purchases were executed using a "mobile wallet" that stores payment card information.
What Is a Mobile Wallet?
Although no consensus definition of what constitutes a mobile wallet yet exists, it can be thought of in many regards as similar to a physical wallet. Payment cards from the mobile wallet can be used to complete a purchase at a store. However, rather than presenting a physical card to the retailer, a mobile wallet presents the payment card information electronically through a mobile phone. Mobile wallets also commonly store loyalty cards, rewards programs, discounts, and coupons, and automatically present them when using the phone to make payment.
Using a mobile wallet may appeal to some consumers because it can replace the need to physically carry different payment or membership cards. Accessing discounts and coupons that are exclusively offered to mobile wallet users may be another attraction, as is the potential to streamline the checkout process.
Considerations for Using Mobile Wallets
As mobile wallets and mobile POS payments are relatively new technologies, consumers appear to have questions and concerns about the security of these services, as reflected in the Board's survey. Consumers should apply the same cautions to the use of mobile wallets as they do to any financial activities they perform on their smartphones or computers. Basic security steps people can take to protect themselves include password-protecting their phone, using security (antivirus, anti-spyware) software, avoiding opening e-mails or texts from unknown senders, and being mindful of the encryption and authenticity of any wireless networks they use.
Payments made using a mobile device that seem quite similar to consumers may, in fact, carry with them fairly different consumer protections depending on how they are funded. When the payment is funded using a credit card, for instance, the consumer's liability under federal law for unauthorized transactions is limited to $50. If a mobile wallet payment is made using a debit card, on the other hand, the consumer's liability for unauthorized transactions under federal law can vary depending on when the consumer notifies the financial institution and whether the unauthorized transaction involves the loss or theft of an access device. In contrast to debit or credit card payments, if the mobile wallet payment is charged to a pre-funded account, gift-card, or general purpose reloadable card, the protections are different still. Federal law provides no limit on consumer liability, except for payroll cards and electronic benefit cards containing certain government benefits. (While not required by law, some companies who issue debit cards or pre-paid cards offer consumers additional protection in their usage contracts.) Because of this variation, the protections against fraudulent or unauthorized transactions that cover consumers when using mobile devices to make payments differ depending on the method of payment ultimately used to fund the particular transaction.
Return to textMobile Security
One of the main reservations consumers express about adopting mobile banking and mobile payments is concern about the security of the technology. Despite the increased prevalence of mobile banking and mobile payments, a significant share of consumers believe the technology to be unsafe or don't know how safe it is for protecting their personal financial information. Among all mobile phone users, 25 percent believe that people's personal information is "somewhat unsafe" when using mobile banking and 18 percent believe that it is "very unsafe." A further 17 percent of mobile phone users simply don't know how safe it is to use mobile banking. Only 6 percent said it was "very safe" to use mobile banking (table 6).
Table 6. How safe do you believe people's personal information is when they use mobile banking? (2012 and 2013 surveys)
Percent, except as noted
| 2012 | 2013 | |
|---|---|---|
| Very safe | 9.2 | 6 |
| Somewhat safe | 24.9 | 32.1 |
| Somewhat unsafe | 14.5 | 25.5 |
| Very unsafe | 11.5 | 18 |
| Don't know | 38.5 | 17.2 |
| Refused to answer | 1.4 | 1.3 |
| Number of respondents | 2,291 | 2,341 |
Note: The wording of the questions differed slightly from the 2012 to 2013 survey. The previous wording of the question was "How would you currently rate the overall security of mobile banking for protecting your personal information?"
Table 7. How safe do you believe people's personal information is when they use a mobile phone to pay for a purchase at a store?
Percent, except as noted
| Very safe | 4.3 |
|---|---|
| Somewhat safe | 29.9 |
| Somewhat unsafe | 26.5 |
| Very unsafe | 19.3 |
| Don't know | 18.3 |
| Refused to answer | 1.7 |
| Number of respondents | 2,341 |
When mobile phone users were asked how safe they believe people's personal financial information is when they use a mobile phone to pay for a purchase at a store, 27 percent said it was "somewhat unsafe" and 19 percent said it was "very unsafe." As with mobile banking, there exists significant uncertainty about the security of POS mobile payments, with 18 percent saying they "don't know" whether people's personal financial information is safe when making such a payment. The share of consumers saying that POS mobile payments are "very safe" was only 4 percent, while 30 percent say that it is "somewhat safe" (table 7).
There is a dichotomy in the perception of the security of people's personal financial information when using mobile banking. Among mobile phone owners who do not use mobile banking, only 2 percent rate mobile banking as "very safe," while 22 percent rate it "somewhat safe." One-fifth of non-users indicate that they "don't know" how safe it is to use mobile banking. Mobile banking users, however, rate mobile banking as "very safe" (15 percent) or "somewhat safe" (56 percent) in terms of protecting their personal information. Only 7 percent of mobile banking users indicate that they "don't know" how safe mobile banking is at protecting their personal information (figure 6).
Figure 6. How safe do you believe people's personal information is when they use mobile banking? (By use of mobile banking)
References
5. For further details on how existing consumer regulations relate to the various methods for making mobile payments, see Stephanie Martin (2012), "Statement before the Committee on Financial Services Subcommittee on Financial Institutions and Consumer Credit U.S. House of Representatives" (Washington: Federal Reserve Board, June), www.federalreserve.gov/newsevents/testimony/martin20120629a.pdf. Return to text
6. NFC (near field communication) is wireless communication technology that allows data to be exchanged between devices that are a few centimeters apart. NFC-enabled mobile phones incorporate a smart chip (called a secure element) that allows the phone to store the payment application and consumer account information securely and use the information as a virtual payment card. Return to text
7. Isis was only available in Austin, Texas, and Salt Lake City, Utah, until launching nationally in November 2013. Return to text
