Security, Privacy, and Cost major barriers to mass adoption of mobile banking, says KPMG's US survey

Mobile Payments and Financial Transactions Findings

According to the survey, the majority of U.S. consumers also are not comfortable with using their mobile device for financial transactions (66 percent).

With regards to payments, 95 percent of U.S. respondents said they never made a purchase from a vending machine using their mobile device and 95 percent said they never made a purchase using a mobile device through a retailer's mobile Web site, further suggesting an unfamiliarity or lack of comfort in using a mobile device for transactions and payments.

"U.S. consumers -- as well as worldwide -- need to be convinced that new payment methods and banking vehicles are safe and secure for them to succeed," said Mitch Siegel, director of payment advisory services in KPMG LLP's Financial Services practice. "Once these concerns are addressed, consumer confidence can grow and adoption could potentially increase."

"With high mobile device penetration rates, U.S. consumers are accustomed to using the mobile channel to access data," added Siegel. "And it may only be a matter of time before they grow comfortable with using -- and potentially paying a premium to use -- the mobile device for browser-based and point-of-sale, 'contactless' financial transactions."

"Banks that include the mobile channel as a component of their payment strategy -- including a roadmap of products and a tactical plan -- will position themselves well for the future," concluded Siegel. "As part of this effort, banks will need to address complex arrangements for account ownership and revenue sharing between device manufacturers, carriers, merchants and application/network providers. The navigation of these complex arrangements may help drive consumers' eventual adoption of the mobile device as a 'virtual wallet' and the culmination of a channel that could represent the ultimate convergence of payment instruments."

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(This is press release of KPMG LLP, US)

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