Mobile Payments: Is Security The Key To Consumer Uptake? Banking Review: Fall 2012

THE MOBILE LANDSCAPE

Smartphones are increasingly becoming an indispensable tool in daily life. A third of Canadians own smartphones and the numbers are growing exponentially. A vast majority may leave their wallets behind but can't think of going anywhere without their phones. As new services emerge, Canadians are starting to research and shop using their smartphones, with 20% of smartphone users having made a purchase on their phone.¹ In fact, smartphone market penetration has grown from 5% to 40%, despite the economic downturn.² The implication is clear: mobile will become pervasive and having a coherent strategy is critical to customer engagement.

Canadian banks have started going down this path and have introduced mobile banking on major smartphone platforms: BlackBerry, Apple and Android. However, adoption of mobile banking has been slow. According to a PwC survey of Canadian consumers³, just 13% of Canadians use mobile banking applications on their