Increase in number of community banks offering mobile payments – Independent Community Bankers of America

The number of US community banks offering mobile payments has risen to 37% according to a survey by the Independent Community Bankers of America.

The number of US community banks offering mobile payments has risen to 37% according to a survey by the Independent Community Bankers of America.

The rise represents an increase of 23% since 2011. Another 43% intend to roll out mobile payments by 2015 and community banks offering P2P payments were also on the rise, up to 40% from 27% in 2011.

Viveca Ware, ICBA executive vice president of regulatory policy, said: "The 2013 ICBA Community Bank Payments Survey confirms what we are seeing anecdotally in the marketplace — that community banks are increasingly offering mobile banking services to meet the evolving needs of their customers and enhance overall customer service.

"The survey also reveals that community banks are increasingly seeing payments as a relationship-builder — something that is right in line with the community bank relationship lending model."

The rise in mobile payments has not overshadowed card payments, with 99% of surveyed banks saying cards were important and 87% saying they were very important. This was despite 94% of banks suffering losses due to debit card fraud.

The larger banks surveyed were more likely to offer mobile payments, with 54% of banks with assets of $501m or more offering mobile payments. 46% banks with between $251m and $500m offered mobile payments.

Smaller banks’ fortunes were on the decline with those holding under $100m in assets least likely to see increases in revenue and most likely to suffer declines in revenues.

 

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