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.
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.