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How Can Banks Meet The Challenges Of The Mobile Payment System?

Today, the global financial system is increasingly relying on mobile phone technology which is largely transforming the people's lifestyle. Banking is one of the areas where the effect of mobile payment technology is undoubtedly being noticed.

Earlier, mobile device was just another medium for receiving alerts and transaction notifications, but with the increasing penetration of Smartphone and the widespread availability of mobile payment applications, it has become a considerably reliable channel to cater the financial need of customers and process a huge number of payment transactions.

However, mobile payment system is facing a number of challenges to have widespread adoption. At the same time, because customers shift away from bank branches towards electronic banking, banking is also undergoing several changes thereby facing some challenges.

Today, consumers and merchants already have a wide range of payment access options. They are used to with payment options such as cash and checks, credit and debit cards. These options are convenient, widely accepted, and even, trusted as well.

Through credit and debit card transactions, banks make a huge amount of money. But various findings show that banks are under a threat to their payments business because of not keeping up with fast-changing technology. Industry experts believe that if banks fall behind in mobile wallets they could lose more of their banking business.

Despite the fact that mobile banking has a set of challenges, banks are in the race of leveraging mobile payment system and creating tough competition scenario in the mobile payment industry. What are those challenges and how the banks are meeting them? Let's see some of them here:

- How can banks deliver banking services to their customers 24x7?

- How can they fulfill the need of all customers using different handsets?

- How can they assure customers the highest levels of security?

- How can they create a personalized and branded customer experience?

An ideal and efficient mobile banking system will enable banks generate more revenue, enhance user experience, reduce operating costs, and make the most of market opportunities. Banks need a secure and convenient mobile banking system that has no any barriers to providing user-centric banking services and encourages mass adoption.

Here are some solutions:

1. Security is the main hurdle for widespread adoption of mobile banking and payment system. Poor security inhibits the range of services banks are ready to offer through this system. However, if banks show great concerns over security and enhance the features of security system, there could be a massive growth in its adoption.

2. With the growing Smartphone market, consumers prefer to access their mobile phone applications for almost everything. So their usability experience is very crucial to improving the adoption of mobile banking systems. Various findings show that customers prefer mobile apps to that of mobile websites. This is because apps provide convenient and fast user experience, low data consumption and built-in notifications thus significantly enhancing the user experience.

Like internet banking, through mobile banking mobile devices can also store digital receipts, coupons, vouchers, loyalty cards, gift cards, tickets and much more. This allows end users to do any financial and payment transaction directly from their device. The good news for banks is that some consumers would prefer to get their mobile payment system from a financial institution only.

xpWallet's best-in-class mobile banking system allows for the seamless deployment of new services and the apps can be updated centrally as frequently as desired, allowing banks to launch new services, products and campaigns whenever they want. The mobile banking system enables banks to introduce new features and integrate into a single mobile wallet, keeping a secure and integrated customer experience. The system also offers mobile apps that are compatible with any mobile platform i.e. USSD, SMS, NFC, J2ME, Android, iPhone, BlackBerry platforms, thus banks don't have to settle for mobile web interfaces.

Click here for details for Next Generation mWallet mobile payment system.

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