After decades of procrastination, and ultimately pushed by development from companies such as Apple and Google, the era of m-payments has finally begun to take off, with all four banks now seeing breakneck growth in m-payments. Further expansions are expected in other sectors of m-banking as smartphones and tablets are quickly becoming customers’ preferred way to interact with their banks. By 2015 it is expected that m-banking will overtake the online banking in the number of transactions done electronically.
Early m-payment trials started in the 1980s but PC online banking eventually became the first cab off the rank during the 1990s. BuddeComm assisted the Commonwealth Bank to set up the first national online banking system in the world, Telebank.
The arrival of the iPhone proved that the mobile operators’ restrictive portal market could be bypassed and this produced an explosion in new mobile applications, to such an extent that the value of this market overtook the mobile portal market within two years; it is now the dominant m-commerce platform. Possibly within another year or two the open Android platform, together with an open API type access, will support more m-commerce and drive the development and uptake of m-payment facilities further.
Mobile banking didn’t develop until the arrival of smartphones. While initially taking a cautious approach the banks could not hold back customer demand and since services started to become available in 2010-2011 the banks have seen unprecedented growth of these services.
Near Field Communications (NFC), person-to-person (P2P) payments Retail POS, contactless payments, interactive voice recognition (IVR).
Companies covered in this report include:
Commonwealth Bank, ANZ Bank, Westpac, National Australia Bank, Visa, MasterCard, mHITs, Hoyts, CabCharge, Taxis, Coles, Vodafone, Optus.