Financial Implications Of Mobile Financial Service

According to the most recent Federal Reserve study; most of us haven’t set foot in a banking hall in ages. It is a lost battle to banks that opt to use traditional methods to conduct their banking transactions (Gup 2003). By December of last year, close to half of all smartphone users in the United States had transacted some or all of their banking on their phones and iPhones. In the United Kingdom alone, rates of mobile banking transactions doubled over the course of a single year (Scn Education 2001). A banking business that invests in this type of technology gets assured of increasing their customer base.

Mobility has brought a huge difference in the IT industry. Most companies are dependent on doing business via mobile devices. Most individuals with mobile phones, this is their only connection to information and entertainment.(class notes) Every company is now looking to emerge on top by using the latest mobility features that are not only efficient, but also effective. Mobility will allow for easy access of company documentation, easy collaboration and communication between teams both here and also offshore. In this paper today I will write about Mobile payments and how it affects retail competitiveness and operations.

Mobile banking is also popularly known as SMS banking or M-banking. It is the latest development in the banking sector that enables us to conduct banking transactions by using the mobile phone.

In many developing countries it's common for a person to have a mobile phone but not a bank account. In fact, more than 1 billion people fit this description, and the number is only likely to increase. To that end, many companies are considering how to give residents access to banking services via their handsets. The GSM Association predicts that by 2012, nearly 300 million of the previously "unbanked" will be using some form of mobile banking.

Furthermore, the development of the mobile phone also benefits the banking services. People can easily access to their account through the mobile Internet. Secondly, particular applications have been invented for mobile users to manipulate their banking service. For example, HSBC has

The emergence of smartphones, such as iPhone, Android, and BlackBerry, allowed banks to provide a richer

Currently available, but with expectations of large increases, are mobile pay methods which are becoming more convenient and more secure. Retailers need to offer mobile payment or be left behind. We have Apple Pay and Google Wallet. PayPal has an app that allows customers to “check-in” when entering a store. Users can then punch in their phone numbers and a code at the cashier station and the charge is put on your account (Williams). Chase Pay allows consumers to show a code to their cashier and their account will be billed. On the horizon are Bluetooth payments where customers don’t even have to take their phones out of their pockets or purses. More advanced mobile changes are predicted in the future, like the Bluetooth payments (Kearsley). The goal of mobile payments is to make the process quicker, easier and more secure.

According to the GMSA, approximately 255 mobile money services were operating across 89 countries in 2014. Sub-Saharan Africa is the region where mobile money services are most widely adopted, followed by Southeast Asia and Latin America. By enabling users to transfer money to each other and make payments directly to businesses and service providers, M-Pesa cuts down on corruption by reducing the need to operate in a cash-only economy. As a result, M-Pesa empowers individuals and supports entrepreneurial creativity in a less constrained financial marketplace. M-Pesa has proven that mobile payments can work in Africa, and other developing regions of the

Nowadays using mobile banking make checking and making payments from your account a lot easier because you are able to check your balance and then transfer money were needed

Some companies have decided to outsource something as small as their mobile bank industry. For some smaller banks in the United Kingdom it seems to be a lot easier to have another company be in charge of their mobile banking so that they focus on core competencies within the organization (Yurcan). In addition to that, with other larger companies who have the resources and money to engage in house control of their own mobile banking IT software, it leaves the smaller businesses with their hands tied. There is no doubt that since 2010 there has been a need for mobile banking, as it is the most efficient and convenient way to bank for customers (Yurcan). Thus, in order

In this scenario, consumers are recognized by the signals they emit, most likely from their wireless phones or PDAs, and they can purchase goods and services from vending machines and businesses without having to use a checkbook, credit card or cash. But making the wireless wallet a reality will require an evolution of both technology and consumer attitudes that is still far in the distance. Moreover, at the commerce phase, in which consumers should realize that using wireless devices to purchase real goods in the physical world does not necessarily deliver those goods to their wireless device. It will be a challenge to convince consumers to leave their credit cards at home and let their phones do the purchasing. In addition to this, consumers will need easy-to-carry wireless devices that they will always have with them, and terminals will have to be available at stores or in vending machines. Both of these devices must have the necessary infrastructure to enable transactions. Last, and most difficult, there must be a worldwide standards initiatives. However, the most important aspect is to explain to the consumers, what is their bennefit to use the services of m-commerce, instead of the brick-and-mortal

With the rapid growth of the mobile handset market and market penetration of mobile internet, the mobile payment industry has started to take off. While there are lots of established players in the online payments arena, the mobile payments sector is ripe for disruption both by industry leaders and newcomers. Mobile payments have been suggested as a solution to facilitate micropayments in electronic and mobile commerce, and to provide an alternative for the diminishing use of cash at point of sale (POS) (Menke and de Lussanet, 2006; Ondrus and Pigneur, 2006)

Payment solutions have changed drastically over time, going from bartering goods in ancient times, using gold and silver, paying with cash and coins, using credit cards, and now mobile devices. There are five main types of mobile payments: mobile at the point of sale, mobile as the point of sale, mobile payment platform, direct mobile billing, and closed loop mobile payments (1). However, this paper will focus on the three most familiar to college students and young adults.

Mobile banking is an application of mobile computing which provides customers with the support needed to be able to bank anywhere, anytime using a mobile handheld device and a mobile service such as text messaging (SMS). Mobile banking removes space and time limitations from banking activities such as checking account balances, or transferring money from one account to another. In recent research and studies it was found that while mobile banking and more specifically SMS-based mobile banking applications have become popular in some countries and regions, they were still not widely used.

For service providers, Mobile banking offers the next surest way to achieve growth. Countries like Korea where mobile penetration is nearing saturation, mobile banking is helping service providers increase revenues from the now static subscriber base. Also service providers are increasingly using the complexity of their supported mobile banking services to attract new customers and retain old ones.