Banking App Users Won Over, Mobile Payment App Users Not So Much

Consumers are using banking apps more often than they’re using mobile payment apps, according to new data from fintech software development company Entersekt. The findings could point to an opportunity for credit unions and other financial institutions to win over more mobile users, it noted.

Done in conjunction with The Harris Poll, the online survey of 1,928 U.S. adults who own mobile devices found that 59% used banking apps at least once a week. Only a third said they used mobile payment apps that often.

“Banking apps are the perfect launchpad for new payment capabilities,” said Entersekt Chief Technology Officer Gerhard Oosthuizen said. “Demand for specialized payment apps isn’t going away, especially for retail brands with superior loyalty programs, better-directed promotions, and on-the-go experiences like low-friction peer-to-peer payments, self-checkout, and in-app ordering. Still, most people use very few of those apps regularly, while banking apps are a leading category, both in downloads and active users. That’s why we think American banks are so well placed to fast-track adoption through an expanded set of consumer enablement use cases.”

The survey also found that 71% of mobile device owners have used mobile payment apps, but only 7% used those payment apps daily. In comparison, 20% said they used banking apps daily.

“No payment app has managed to reach a tipping point in the United States where acceptance is guaranteed. This has slowed adoption, together with lagging contactless infrastructure and issues around interoperability,” Entersekt Chief Commercial Officer Dewald Nolte said.

Many consumers may be in the app-exploration phase, the data suggested. More than two-thirds (68%) said they had more than one app for banking and payments, and 37% had three or more.

“Juggling so many apps, a majority of regular banking app users (those using banking apps once a month or more) understandably found the idea of an all-in-one banking and payment app attractive,” the company reported. “Over two-thirds (68%) of regular banking app users would ‘like to do all banking and payments via one single mobile app.’ A similar majority (67%) claim they would be less likely to use cash or physical credit cards if they had such an app.”

A separate survey from data analytics firm SAS recently found that consumers are also concerned about app security. That poll of 525 U.S. adult customers found that 56% of respondents had deleted an app from their mobile devices. It also found that 73% of respondents were more concerned about their data privacy now than they were a few years ago. In turn, 77% of consumers have changed their privacy settings, 67% changed or declined cookies and 65% declined terms of agreement, it found.