Maximilian Schmeiser

Jeanne M. Hogarth

Division of Consumer and Community Affairs

Federal Reserve Board of Governors

The analysis and conclusions set forth in this presentation represent the work of the author and do not indicate 

concurrence of the Federal Reserve Board, the Federal Reserve Banks, or their staff. Mention or display of a 

trademark, proprietary product, or firm in the presentation by the authors does not constitute an endorsement or 

criticism by the Federal Reserve System and does not imply approval to the exclusion of other suitable products or 

firms.

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 Survey by Knowledge Networks 

 Nationally representative probability-based 

online panel of respondents

◦ December 22, 2011 to January 9, 2012

◦ 2,290 respondents

 Report released March 2012 

(http://www.federalreserve.gov/econresdata/

mobile-device-report-201203.pdf) 

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 Among all mobile phone users:

◦ 21% used mobile banking in past 12 months

◦ 12% used mobile payments in past 12 months

 Among smartphone users (44% of mobile 

phone users)

◦ 42% used mobile banking in past 12 months

◦ 23% used mobile payments in past 12 months

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 78% fully banked; 11% underbanked; 11% 

unbanked

 Underbanked more likely to be: 30-44, less 

educated, minority, lower income (under 

$40,000), working or self-employed

 Unbanked more likely to be: 18-29, less 

educated, minority, low income (under 

$25,000), laid-off or looking for work

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 9 out of 10 have mobile phone

◦ 57% have smart phone

 Nearly 3 out of 10 (28%) use mobile banking

◦ 22% plan to use in next 12 months

 1 out of 6 (17%) use mobile payments

◦ 3 out of 5 pay bills

◦ 1 out of 5 transfer money

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 3 out of 5 (63%) have mobile phone

◦ 26% have smart phone

 10% use mobile banking

◦ 19% plan to use in next 12 months

 1 out of 8 (12%) use mobile payments

◦ 2 out of 5 pay bills

◦ 1 out of 3 make purchase

◦ 1 out of 4 transfer money

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Mobile Banking uses a mobile phone to access your 

bank account, credit card account, or other financial 

account 

You can use mobile banking by:

•Accessing bank’s web page through web browser

•Text messaging

•Using downloaded application

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Mobile payments are purchases, bill payments, charitable donations, 

payments to another person, or any other payments made using a 

mobile phone 

You can make payments by:

• Accessing web page through the web browser

• Text message

• Using downloadable application

The amount of the payment may be: 

• Applied to your phone bill (e.g. Red Cross donation) 

• Billed to credit card

• Debited from bank account or prepaid card

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Where does your mobile payment come from? 
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 Use of smartphones linked to mobile banking 

and mobile payments

◦ Potential for use to increase as more consumers get 

smartphones

 Mobile payments used less frequently than 

mobile banking

◦ Infrastructure issues

◦ Value proposition -- convenience over other forms 

of payment

 Need to address concerns about usefulness 

and security

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 11% of those not currently using mobile 

banking think that they will probably use it 

within the next 12 months

 17% of those who don’t think they will 

adopt mobile banking within 12 months 

indicate that they are likely to do so 

eventually

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