Use of M-Banking & M-Commerce Rising

A study by Harris Interactive revealed that mobile users feel more comfortable in using their mobiles for carrying out purchase transactions and banking operations.

Harris Interactive, a new market research organization, in a study revealed that 16% of mobile phone subscribers are already using mobile banking facility and 60% are using these services once in a week, as reported by Cellular news on March 12, 2008.

According to the survey, many mobile users feel comfortable in making purchase transactions and banking through their mobiles, while 33% of people expressed that they would like to receive SMS alerts from the financial institutions. Almost 35% of mobile subscribers would like to transfer funds and check their bank balances though their mobile.

Mobile Commerce (M- commerce) is a medium of selling and buying goods and services with the help of wireless handhelds, like Personal Digital Assistants (PDAs) and cell phones. A user can use m-commerce easily without looking for a place to plug in. M-Commerce is also famous as next -generation e-commerce.

The new technology of m-commerce is based on the Wireless Application Protocol (WAP). This technology has made its wide presence in Europe as the mobile devices in Europe are well equipped with web-ready micro-browsers in Europe than in the US.

Also, mobile sales are rising due to the fact that around 25% of mobile users access Internet through their mobiles to buy various goods and services by using a credit card. About 20% of respondents expressed that in a near future, they would like to use their mobile as a "mobile wallet" where charges would be credited to their phone bills. About 10% of the mobile users said that they would like to do stock trading and wire transfers through their phones.

The Vice President of Harris Interactive, Mr. Joseph Porus, said that today, people can get any service through their mobile devices and this has increased the demand for m-commerce facilities, as reported by TMCnet on March 12, 2008.

Mr. Joseph added that mobile banking has a bright future, considering the fact that people have already adopted various mobile technologies that offer more than simple communications.

The major problem faced by the customers in adopting m-commerce and banking facility is the fear of exposing the personal data. Almost 66% of mobile phone users do not feel secure in transmitting their financial information through phone.