Survey: Consumers Prefer Mobile Money Transfers over Banks

If mobile money transfers are available to consumers it could help ease the frustration felt by consumers when making bank transfers. A new Amdocs survey noted that 83 percent of the 3,000 respondents were displeased with current international money transfer services available through banks and money transfer operators (MTOs), while almost half of respondents said the speed at which their money is transferred is the biggest issue. These respondents also said they’d be very willing to use their mobile devices to send money internationally. 

Seven Remittance Corridors

The study centered around seven main remittance corridors and their users: US-Mexico, US-Rest of CALA, US-Philippines, UK-Nigeria, US-Vietnam, US-India, and Germany-Turkey. These corridors make up $78.6 billion in annual remittances.

Mobile’s Opportunity

According to Sharath Dorbala, the vice president and head of products, sales, and marketing for mobile financial services at Amdocs, mobile technology has a fantastic opportunity to overtake other money transfer possibilities and become the dominant option. Dorbala further remarked to eWeek that mobile devices provide the ultimate convenience regarding transfer accessibility, ease of use, and availability. Mobile is making over the money transfer business the same way Uber changed the transportation business. 

The Right Time

Dorbala also cited people’s serious dissatisfaction with current money transfer options as another reason that mobile is poised to become the dominant choice. Convenience, cost, and security are among the top features people look for when sending money internationally, and mobile offers all of these things. Survey respondents even said they’d be willing to pay as much as $4 or $5 per transaction. 

Security Issue

Security is unsurprisingly a huge issue with international money transfers, and while MTOs aren’t the most convenient option, they have proven secure. Mobile money solutions are subsequently raising security standards to provide users with the reassurance they need. Biometrics such as facial recognition, fingerprinting, two-factor authentications, encryption technologies, and mobile network security are receiving adjustments to create the high standard of security associated with more traditional options. 

According to Dorbala, sending money internationally using a mobile device is just as secure if not more so than a credit transaction. 

Consultancy firm Juniper Research conducted the money transfer study on behalf of Amdocs. Dr. Windsor Holden, head of forecasting and consultancy at Juniper Research, echoes Dorbala’s comments about mobile’s position to take over as the main international money transfer option. He noted that mobile provides banks and MTOs with much-needed competition, and that its affordability lends itself to further evolution and efficiency. 

Yet Another Application

Mobile technology’s emerging role as a viable money transfer option is yet another way the technology is changing how people pay for goods and services. There are already numerous apps dedicated to bill-splitting and similar practices, including Google Wallet and Lovely, which take the headaches out of determining who owes what. Mobile is increasingly the popular way to pay for anything and everything, and there are suggestions it might overtake credit cards and cash as the favorite way to pay. 

Transferring money overseas, paying bills, splitting costs...mobile is arguably making these processes much, much easier.