Payments

The Mobile Component Is Growing Across US Financial Services

MEDICI

The revolution in FinTech has changed the way banks and payment companies are retaining their customers. For most technological innovations in the financial industry, mobile has acted as a base platform for the entire infrastructure. Mobile payments, due to its penetration potential and easy-to-access platform, has the ability to capture the underbanked population as well. Globally, the mobile-first FinTech market is evolving at a high rate, and the adoption of mobile payments & banking has increased significantly over the years. According to a report, the global mobile payment technology market is expected to reach approximately $3,371.6 billion by 2024. Looking at the growth of this market in the US in particular, we found that 55 million people transacted through mobile in 2018 and the number is expected to increase to 61.6 million in 2019. The infographic below illustrates the adoption of mobile devices across different financial domains in the US:

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  • The number of mobile transactions and users have consistently increased alongside its growing popularity. The large banks in the US have a higher number of active mobile users than any other segment. In 2018, JPMorgan Chase had 67% of active mobile users. Similarly, out of their total digital banking customers, Wells Fargo and Bank of America had 77% and 74% of active mobile users, respectively.

  • Bank of America experienced a steady growth of 20% from 2017 to 2018 with respect to their active mobile users.

  • Out of all the transactions processed on Amazon Pay, approximately 23% were mobile transactions in 2018.

  • Approximately 70% of Western Union’s digital transactions globally now happens on mobile devices.

  • About 41% of the total payments processed on PayPal is done on mobile. The number has grown by 109% since 2017.

  • In the United States, Starbucks’ mobile payment application accounted for 14% of all US transactions in Q4 2018.

  • Mobile payments accounted for an estimated 42% of Starbucks’ total transactions in Q4 2018.

According to a report, the mobile payment industry in the United States is expected to record a CAGR of 6.0% to reach $1,074,071.4 million by 2025. It is clear that mobile components have been enjoying tremendous momentum in US financial services industry – this will continue to grow further as smartphone adoption & usage increases and more businesses start harnessing the potential of mobile applications.

Ravi Rathi & Shivangi

MEDICI

Ravi conducts research across all FinTech domains and has in-depth experience in the areas of consulting & research. He also has a deep understanding of talent mapping solutions and has previously worked with Fortune 500 companies to solve their talent-related problems. Ravi is especially interested in Cryptocurrency and Blockchain. He has helped various companies understand upcoming technologies in the FinTech domain across the globe. He truly believes that the two things that matter the most in any business is ‘money’ and ‘talent’ and loves solving problems related to these two drivers.

Shivangi is a FinTech enthusiast and an avid researcher who spends her time learning, researching, and writing about market trends, traction & disruptions in the industry. She focuses on understanding FinTech companies and various emerging technologies impacting the business model. She has been active in the financial services space for 1.9 years.

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