Traditional Big Banks Threatened By Growing Mobile Wallet Apps

With an increase in the use of mobile phones and mobile banking, the need for traditional banking services are slowly reducing due to multiple transaction solutions provided by Mobile Wallets.

US financial institutions face a serious competitive threat from the rise of Mobile Wallet payment apps, according to a consumer study released by Carlisle and Gallagher, a consulting firm that specializes in financial services. The study also revealed a number of other eye opening results.

What is a Mobile Wallet?

A Mobile Wallet is a Smartphone app that supports multiple payment options, including credit cards, potential coupon offers and purchasing wish lists. The most popular Mobile Wallet is Google Wallet, and Apple is soon expected to join the Mobile Wallet league. PayPal is also making significant advances in the Mobile Wallet domain.

Carlisle and Gallagher took a sample of 605 individuals and almost 50% sample showed their interest in using a Mobile Wallet, an alarming sign for big traditional banks. PayPal scored the highest in Mobile Wallet usage consideration followed by Google and Apple; about 80% of the people were keen on using the Mobile Wallet for credit cards and other banking services. Using one’s handset as a financial tool, or the Mobile Wallet is a new concept which is becoming increasingly popular and integrated across consumer platforms. It not only helps users on the move to access financial accounts, but also plays an integral part in the development of digital commerce and banking. Appostrophic is also considering such mobile wallet apps for iPhone and iPad to sustain the element of leadership and innovation in the mobile application development industry.

How is a Mobile Wallet different from traditional banks?

The Mobile Wallet is proving especially effective in developing countries where desktop access to the Internet and banking opportunities are still a privilege. But access to mobile phones is extremely high. Traditional banks offer physical branches and ATMs, while the Mobile Wallets use the Internet, mobile devices and affiliations with established businesses to offer services in new ways. Now, Mobile Wallets are opening up even more doors for conducting daily as well as enterprise functions.

Today, the fact that more and more people are drifting towards Mobile Wallets is not the worry factor for big banks, because these banks already have alternatives to Mobile Wallets like mobile banking. But the threat that these banks may eventually have to close down their traditional ways of doing business and accept Mobile Wallets and future technologies is very real.

Mobile wallet is certainly opening doors for new apps development and initiating another apps war among the mobile apps developers. Appostrophic has always been ready for new challenges and opportunities and with the help of its highly professional and experienced app developers; it is able to compete drastically to be a winner.

It is predicted that within five years, half of today’s Smartphone users will take advantage of phones and Mobile Wallets as their preferred form of payment method. With the physical wallet disappearing, banks will need to quickly figure out what they can offer customers that PayPal, Google and other competitors haven’t thought of.

Appostrophic - Turning Opportunities into Strengths!

Since the tech-world is advancing day by day, new mobile apps are developing at a similar pace. Appostrophic, being part of the mobile apps development business, remains on its toes and immediately grabs any opportunity arising in the industry. Our highly experienced and expert team of strategists, designers, programmers & app developers, at Appostrophic, always comes up with novel ideas to create exceptional apps for iPhone, iPad, Android, Facebook and Windows that exactly suit the needs of our customers. Should we mention that the result has always been beyond their expectations? After all, Appostrophic builds Mobile apps like no other!