76% of young adults prepared to pay £5 a month for mobile banking

The ability to instantly block a lost or stolen card — a key feature of NFC payments services — topped the list of transactional features 18- to 26-year-olds would be prepared to pay for, a UK survey has found.

Simon-Kucher & Partners
SURVEY: Young adults will pay for mobile banking security

People in the 18-26 age bracket are willing to spend about £5 (US$8.07) every month to access mobile banking services, a UK survey from pricing consultants Simon-Kucher & Partners has revealed.

Simon-Kucher’s survey found:

  • 94% said blocking lost or stolen cards was the most important transactional feature.
  • Retail payments are wanted by 59% of respondents.
  • P2P payments are wanted by 57% of respondents.
  • 84% said fraud monitoring was the most important interactive feature.
  • 73% were interested in using mobile banking services, even though only 13% currently do so.
  • 81% of those questioned said information services were important or very important. 60% of those who were interested in information services said that checking their bank balance on the go was the most important feature.

“This demographic represents an untapped market opportunity; this group identified a fair price for mobile banking and over three quarters of respondents are willing to use it,” says Georg Wuebker, global head of banking at Simon-Kucher & Partners.

Ben Snowman, the study’s author, adds: “Paid-for mobile banking can also play a long-term strategic role in customer succession planning. If banks launch fee-carrying mobile banking services, they will see consecutive generations of customers moving towards paid-for services and an increasingly lower portion of the customer base will use free banking.”

“Banks are increasingly looking to promote single-fee service plans, for example packaged current accounts, rather than component-level pricing structures and therefore we believe that a monthly service plan will be the simplest and most natural price structure for a full, functionally rich mobile banking service,” Snowman told NFC World.