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Released: January 2012
The smartphone revolution is underway, and it is changing how we live and how we manage our money. Banks and other financial services providers are increasingly recognizing consumers’ demands for greater convenience, speed, and engagement. In response, leading financial services competitors are now developing an array of mobile banking offerings to meet the needs of consumers’ increasingly mobile lifestyles. Research has shown that the use of image capture technology in these mobile banking applications is not only providing increased convenience to consumers, but it is also changing how and with whom consumers bank. Specifically, Mobile Remote Deposit Capture (RDC) is gaining increasing consumer attention and adoption, and is a key decision factor driving bank choice.
Another image-based mobile banking application, Mobile Photo Bill Pay (MPBP), offers consumers greater simplicity and choice in paying bills. With Mobile Photo Bill Pay, consumers with a camera-equipped smartphone or tablet have the ability to take a picture of a bill, confirm payment, and click to pay. This capability not only gives consumers a new payment option, but it also gives them a fast way to use their mobile device to pay one-time or non-recurring bills, quickly add a new payee to their traditional online bill pay, and set up recurring bills and payments. The ability to add a new payee with a mobile device is a key competitive advantage over existing online bill pay applications.
As mobile banking applications have increasingly become table stakes, it is even more critical for financial service providers to understand which new value-added applications should become a part of their core suite of mobile banking offerings. Mobile image capture technologies, and specifically MPBP, can provide banks with the critical marketplace differentiators they need.
Market growth of Mobile Photo Bill Pay will be driven by continued aggressive adoption of smartphones and tablets among consumers and the implementation of broadening mobile capabilities by leading financial services firms. MPBP adoption is forecasted to reach 33% among adult U.S. consumers by 2018, and result in 1.4 billion bills migrating to the MPBP channel. To fully understand the potential of this mobile banking application, it is important to first consider existing consumer behavior in the bill payment market.