Mobile banking

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Mobile banking is a service provided by a bank or other financial institution that allows its customers to conduct financial transactions remotely using a mobile device such as a smartphone or tablet. Unlike the related internet banking it uses software, usually called an app, provided by the financial institution for the purpose. Mobile banking is usually available on a 24-hour basis. Some financial institutions have restrictions on which accounts may be accessed through mobile banking, as well as a limit on the amount that can be transacted. Mobile banking is dependent on the availability of an internet or data connection to the mobile device.

Bank financial institution

A bank is a financial institution that accepts deposits from the public and creates credit. Lending activities can be performed either directly or indirectly through capital markets. Due to their importance in the financial stability of a country, banks are highly regulated in most countries. Most nations have institutionalized a system known as fractional reserve banking under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity, banks are generally subject to minimum capital requirements based on an international set of capital standards, known as the Basel Accords.

Financial institution institution that provides financial services for its clients or members

Financial institutions, otherwise known as banking institutions, are corporations that provide services as intermediaries of financial markets. Broadly speaking, there are three major types of financial institutions:

  1. Depository institutions – deposit-taking institutions that accept and manage deposits and make loans, including banks, building societies, credit unions, trust companies, and mortgage loan companies;
  2. Contractual institutions – insurance companies and pension funds
  3. Investment institutions – investment banks, underwriters, brokerage firms.
Financial transaction agreement, or communication, carried out between a buyer and a seller to exchange an asset for payment

A financial transaction is an agreement, or communication, carried out between a buyer and a seller to exchange an asset for payment.

Contents

Transactions through mobile banking depend on the features of the mobile banking app provided and typically includes obtaining account balances and lists of latest transactions, electronic bill payments, remote check deposits, P2P payments, and funds transfers between a customer's or another's accounts. [1] Some apps also enable copies of statements to be downloaded and sometimes printed at the customer's premises. Using a mobile banking app increases ease of use, speed, flexibility and also improves security because it integrates with the user built-in mobile device security mechanisms.[ citation needed ]

Electronic bill payment is a feature of online, mobile and telephone banking, similar in its effect to a giro, allowing a customer of a financial institution to transfer money from their transaction or credit card account to a creditor or vendor such as a public utility, department store or an individual to be credited against a specific account. These payments are typically executed electronically as a direct deposit through a national payment system, operated by the banks or in conjunction with the government. Payment is typically initiated by the payer but can also be set up as a direct debit.

Peer-to-peer banking is a term used in the blockchain banking industry and designates an act of transfer of value without the need of an intermediary such as a bank.

A giro, or giro transfer, is a payment transfer from one bank account to another bank account and initiated by the payer, not the payee. The debit card has a similar model. Giros are primarily a European phenomenon; although electronic payment systems such as the Automated Clearing House exist in the United States and Canada, it is not possible to perform third party transfers with them. In the European Union, there is the Single Euro Payments Area (SEPA) which allows electronic giro or debit card payments in euros to be executed to any euro bank account in the area.

From the bank's point of view, mobile banking reduces the cost of handling transactions by reducing the need for customers to visit a bank branch for non-cash withdrawal and deposit transactions. Mobile banking does not handle transactions involving cash, and a customer needs to visit an ATM or bank branch for cash withdrawals or deposits. Many apps now have a remote deposit option; using the device's camera to digitally transmit cheques to their financial institution.

Branch (banking) subsidiary office of bank

A branch, banking center or financial center is a retail location where a bank, credit union, or other financial institution offers a wide array of face-to-face and automated services to its customers.

Automated teller machine electronic banking kiosk

An automated teller machine (ATM) is an electronic telecommunications device that enables customers of financial institutions to perform financial transactions, such as cash withdrawals, deposits, transfer funds, or obtaining account information, at any time and without the need for direct interaction with bank staff.

Remote deposit is the ability of a bank customer in the United States and Canada to deposit a check into a bank account from a remote location, such as an office or home, without having to physically deliver the check to the bank. This is typically accomplished by scanning a digital image of a check into a computer, then transmitting that image to the bank. The practice became legal in the United States in 2004 when the Check Clearing for the 21st Century Act took effect, though not all banks have implemented the system.

Mobile banking differs from mobile payments, which involves the use of a mobile device to pay for goods or services either at the point of sale or remotely, [2] analogously to the use of a debit or credit card to effect an EFTPOS payment.

Mobile payment generally refer to payment services operated under financial regulation and performed from or via a mobile device. Instead of paying with cash, cheque, or credit cards, a consumer can use a mobile to pay for a wide range of services and digital or hard goods. Although the concept of using non-coin-based currency systems has a long history, it is only in the 21st century that the technology to support such systems has become widely available.

Point of sale time and place where a retail transaction is completed

The point of sale (POS) or point of purchase (POP) is the time and place where a retail transaction is completed. At the point of sale, the merchant calculates the amount owed by the customer, indicates that amount, may prepare an invoice for the customer, and indicates the options for the customer to make payment. It is also the point at which a customer makes a payment to the merchant in exchange for goods or after provision of a service. After receiving payment, the merchant may issue a receipt for the transaction, which is usually printed but can also be dispensed with or sent electronically.

Electronic funds transfer at point of sale is an electronic payment system involving electronic funds transfers based on the use of payment cards, such as debit or credit cards, at payment terminals located at points of sale. EFTPOS technology originated in the United States in 1981 and was adopted by other countries. In Australia and New Zealand, it is also the brand name of a specific system used for such payments; these systems are mainly country specific and do not interconnect.

History

The earliest mobile banking services used SMS, a service known as SMS banking. With the introduction of smart phones with WAP support enabling the use of the mobile web in 1999, the first European banks started to offer mobile banking on this platform to their customers. [3]

SMS Text messaging service component

SMS is a text messaging service component of most telephone, Internet, and mobile device systems. It uses standardized communication protocols to enable mobile devices to exchange short text messages. An intermediary service can facilitate a text-to-voice conversion to be sent to landlines. SMS was the most widely used data application at the end of 2010, with an estimated 3.5 billion active users, or about 80% of all mobile subscribers.

SMS banking

SMS banking is a form of mobile banking. It is a facility used by some banks or other financial institutions to send messages to customers' mobile phones using SMS messaging, or a service provided by them which enables customers to perform some financial transactions using SMS.

Wireless Application Protocol (WAP) is a technical standard for accessing information over a mobile wireless network. A WAP browser is a web browser for mobile devices such as mobile phones that uses the protocol. Introduced in 1999, WAP achieved some popularity in the early 2000s, but by the 2010s it had been largely superseded by more modern standards. Most modern handset internet browsers now fully support HTML, so they do not need to use WAP markup for web page compatibility, and therefore, most are no longer able to render and display pages written in WML, WAP's markup language.

Mobile banking before 2010 was most often performed via SMS or the mobile web. Apple's initial success with iPhone and the rapid growth of phones based on Google's Android (operating system) have led to increasing use of special mobile apps, downloaded to the mobile device. With that said, advancements in web technologies such as HTML5, CSS3 and JavaScript have seen more banks launching mobile web based services to complement native applications. These applications are consisted of a web application module in JSP such as J2EE and functions of another module J2ME. [4]

Mobile web browser-based Internet services accessed from handheld mobile devices through a mobile or other wireless network

The mobile web refers to browser-based World Wide Web services accessed from handheld mobile devices, such as smartphones or feature phones, through a mobile or other wireless network.

Apple Inc. Technology company; developer of consumer electronics and multimedia platforms

Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Four tech companies along with Amazon, Google, and Facebook.

iPhone line of smartphones designed and marketed by Apple Inc.

The iPhone is a line of smartphones designed and marketed by Apple Inc. All generations of the iPhone use Apple's iOS mobile operating system software. The first-generation iPhone was released on June 29, 2007, and multiple new hardware iterations with new iOS releases have been released since.

A recent study (May 2012) by Mapa Research suggests that over a third of banks [5] have mobile device detection upon visiting the banks' main website. A number of things can happen on mobile detection such as redirecting to an app store, redirection to a mobile banking specific website or providing a menu of mobile banking options for the user to choose from.

A mobile banking conceptual

In one academic model, [6] mobile banking is defined as:

Mobile Banking refers to provision and availment of banking- and financial services with the help of mobile telecommunication devices.The scope of offered services may include facilities to conduct bank and stock market transactions, to administer accounts and to access customised information."

According to this model mobile banking can be said to consist of three inter-related concepts:

Most services in the categories designated accounting and brokerage are transaction-based. The non-transaction-based services of an informational nature are however essential for conducting transactions - for instance, balance inquiries might be needed before committing a money remittance. The accounting and brokerage services are therefore offered invariably in combination with information services. Information services, on the other hand, may be offered as an independent module.

Mobile banking may also be used to help in business situations as well as for financial situation

Mobile banking services

Typical mobile banking services may include:

Account information

  1. Mini-statements and checking of account history
  2. Alerts on account activity or passing of set thresholds
  3. Monitoring of term deposits
  4. Access to loan statements
  5. Access to card statements
  6. Mutual funds / equity statements
  7. Insurance policy management

Transaction

  1. Funds transfers between the customer's linked accounts
  2. Paying third parties, including bill payments and third party fund transfers(see, e.g., FAST)
  3. Check Remote Deposit

Investments

  1. Portfolio management services
  2. Real-time stock

Support

  1. Status of requests for credit, including mortgage approval, and insurance coverage
  2. Check (cheque) book and card requests
  3. Exchange of data messages and email, including complaint submission and tracking
  4. ATM Location

Content services

  1. General information such as weather updates, news
  2. Loyalty-related offers
  3. Location-based services

A report by the US Federal Reserve (March 2012) found that 21 percent of mobile phone owners had used mobile banking in the past 12 months. [7] Based on a survey conducted by Forrester, mobile banking will be attractive mainly to the younger, more "tech-savvy" customer segment. A third of mobile phone users say that they may consider performing some kind of financial transaction through their mobile phone. But most of the users are interested in performing basic transactions such as querying for account balance and making bill

Future functionalities in mobile banking

Based on the 'International Review of Business Research Papers' from World business Institute, Australia, following are the key functional trends possible in world of Mobile Banking. With the advent of technology and increasing use of smartphone and tablet based devices, the use of Mobile Banking functionality would enable customer connect across entire customer life cycle much comprehensively than before.

Illustration of objective based functionality enrichment In Mobile Banking:

Challenges for a mobile banking solution[ buzzword ]

Key challenges in developing a sophisticated mobile banking application are :

Handset accessibility

There are a large number of different mobile phone devices and it is a big challenge for banks to offer a mobile banking solution[ buzzword ] on any type of device. Some of these devices support Java ME and others support SIM Application Toolkit, a WAP browser, or only SMS.

Initial interoperability issues however have been localized, with countries like India using portals like "R-World" to enable the limitations of low end java based phones, while focus on areas such as South Africa have defaulted to the USSD as a basis of communication achievable with any phone.

The desire for interoperability is largely dependent on the banks themselves, where installed applications(Java based or native) provide better security, are easier to use and allow development of more complex capabilities similar to those of internet banking while SMS can provide the basics but becomes difficult to operate with more complex transactions.

There is a myth that there is a challenge of interoperability between mobile banking applications due to perceived lack of common technology standards for mobile banking. In practice it is too early in the service lifecycle for interoperability to be addressed within an individual country, as very few countries have more than one mobile banking service provider. In practice, banking interfaces are well defined and money movements between banks follow the IS0-8583 standard. As mobile banking matures, money movements between service providers will naturally adopt the same standards as in the banking world.

In January 2009, Mobile Marketing Association (MMA) Banking Sub-Committee, chaired by CellTrust and VeriSign Inc., published the Mobile Banking Overview for financial institutions in which it discussed the advantages and disadvantages of Mobile Channel Platforms such as Short Message Services (SMS), Mobile Web, Mobile Client Applications, SMS with Mobile Web and Secure SMS. [8]

Security

As with most internet-connected devices, as well as mobile-telephony devices, cybercrime rates are escalating year-on-year. The types of cybercrimes which may affect mobile-banking might range from unauthorized use while the owner is using the mobile banking, to remote-hacking, or even jamming or interference via the internet or telephone network data streams. This is demonstrated by the malware called SMSZombie.A, which infected Chinese Android devices. It was embedded in wallpaper apps and installed itself so it can exploit the weaknesses of China Mobile SMS Payment system, stealing banks credit card numbers and information linked to financial transactions. [9] One of the most advanced malwares discovered recently was the Trojan called Bankbot. It went past Google's protections in its Android app marketplace and targeted Wells Fargo, Chase, and Citibank customers on Android devices worldwide before its removal by Google in September 2017. [10] This malicious app was activated when users opened a banking app, overlaying it so it can steal banking credentials. [11]

In the banking world, currency rates may change by the millisecond.

Security of financial transactions, being executed from some remote location and transmission of financial information over the air, are the most complicated challenges that need to be addressed jointly by mobile application developers, wireless network service providers and the banks' IT departments.

The following aspects need to be addressed to offer a secure infrastructure for financial transaction over wireless network :

  1. Physical part of the hand-held device. If the bank is offering smart-card based security, the physical security of the device is more important.
  2. Security of any thick-client application running on the device. In case the device is stolen, the hacker should require at least an ID/Password to access the application.
  3. Authentication of the device with service provider before initiating a transaction. This would ensure that unauthorized devices are not connected to perform financial transactions.
  4. User ID / Password authentication of bank's customer.
  5. Encryption of the data being transmitted over the air.
  6. Encryption of the data that will be stored in device for later / off-line analysis by the customer.

One-time password (OTPs) are the latest tool used by financial and banking service providers in the fight against cyber fraud. [12] Instead of relying on traditional memorized passwords, OTPs are requested by consumers each time they want to perform transactions using the online or mobile banking interface. When the request is received the password is sent to the consumer's phone via SMS. The password is expired once it has been used or once its scheduled life-cycle has expired.

Because of the concerns made explicit above, it is extremely important that SMS gateway providers can provide a decent quality of service for banks and financial institutions in regards to SMS services. Therefore, the provision of service level agreements (SLAs) is a requirement for this industry; it is necessary to give the bank customer delivery guarantees of all messages, as well as measurements on the speed of delivery, throughput, etc. SLAs give the service parameters in which a messaging solution[ buzzword ] is guaranteed to perform.

Scalability and reliability

Another challenge for the CIOs and CTOs of the banks is to scale-up the mobile banking infrastructure to handle exponential growth of the customer base. With mobile banking, the customer may be sitting in any part of the world (true anytime, anywhere banking) and hence banks need to ensure that the systems are up and running in a true 24 x 7 fashion. As customers will find mobile banking more and more useful, their expectations from the solution[ buzzword ] will increase. Banks unable to meet the performance and reliability expectations may lose customer confidence. There are systems such as Mobile Transaction Platform which allow quick and secure mobile enabling of various banking services. Recently in India there has been a phenomenal growth in the use of Mobile Banking applications, with leading banks adopting Mobile Transaction Platform and the Central Bank publishing guidelines for mobile banking operations.

Application distribution

Due to the nature of the connectivity between bank and its customers, it would be impractical to expect customers to regularly visit banks or connect to a web site for regular upgrade of their mobile banking application. It will be expected that the mobile application itself check the upgrades and updates and download necessary patches (so called "Over The Air" updates). However, there could be many issues to implement this approach such as upgrade / synchronization of other dependent components.

Studies have shown that a huge concerning factor of having mobile banking more widely used, is a banking customer's unwillingness to adapt. Many consumers, whether they are misinformed or not, do not want to begin using mobile banking for several reasons. These can include the learning curve associated with new technology, having fears about possible security compromises, just simply not wanting to start using technology, etc.

Personalization

It would be expected from the mobile application to support personalization such as :

  1. Preferred Language
  2. Date / Time format
  3. Amount format
  4. Default transactions
  5. Standard Beneficiary list
  6. Alerts

Mobile banking in the world

This is a list of countries by mobile banking usage as measured by the percentage of people who had non-SMS mobile banking transactions in the previous three months. The data is sourced from Bain, Research Now and Bain along with GMI NPS surveys in 2012. [13] [14]

RankCountry/TerritoryUsage in 2012
1Flag of South Korea.svg  South Korea 47%
2Flag of the People's Republic of China.svg  China 42%
3Flag of Hong Kong.svg  Hong Kong 41%
4Flag of Singapore.svg  Singapore 38%
5Flag of India.svg  India 37%
6Flag of Spain.svg  Spain 34%
7Flag of the United States.svg  United States 32%
8Flag of Mexico.svg  Mexico 30%
9Flag of Australia (converted).svg  Australia 27%
10Flag of France.svg  France 26%
11Flag of the United Kingdom.svg  United Kingdom 26%
12Flag of Thailand.svg  Thailand 24%
13Flag of Canada (Pantone).svg  Canada 22%
14Flag of Germany.svg  Germany 14%
15Flag of Pakistan.svg  Pakistan 9%

African nations such as Kenya would rank highly if SMS mobile banking were included in the above list. Kenya has 38% of the population as subscribers to M-Pesa as of 2011. [15] Though as of 2016 mobile banking applications have seen a tremendous growth in Kenyan banking sector who have capitalised on android play store and apple store to put their applications. Kenyan banks like Equity Bank Kenya Limited Eazzy banking application and The Co-operative Bank Mco-op cash application have proved to be a success mobile banking applications.

Mobile banking is used in many parts of the world with little or no infrastructure, especially remote and rural areas. This aspect of mobile commerce is also popular in countries where most of their population is unbanked. In most of these places, banks can only be found in big cities, and customers have to travel hundreds of miles to the nearest bank.

In Iran, banks such as Parsian, Tejarat, Pasargad Bank, Mellat, Saderat, Sepah, Edbi, and Bankmelli offer the service. Banco Industrial provides the service in Guatemala. Citizens of Mexico can access mobile banking with Omnilife, Bancomer and MPower Venture. Kenya's Safaricom (part of the Vodafone Group) has the M-Pesa Service, which is mainly used to transfer limited amounts of money, but increasingly used to pay utility bills as well. In 2009, Zain launched their own mobile money transfer business, known as ZAP, in Kenya and other African countries. Several other players in Kenya such as Tangerine, MobiKash and Funtrench Limited also have network-independent mobile money transfer. In Somalia, the many telecom companies provide mobile banking, the most prominent being Hormuud Telecom and its ZAAD service.

Telenor Pakistan has also launched a mobile banking solution[ buzzword ], in coordination with Taameer Bank, under the label Easy Paisa, which was begun in Q4 2009. Eko India Financial Services, the business correspondent of State Bank of India (SBI) and ICICI Bank, provides bank accounts, deposit, withdrawal and remittance services, micro-insurance, and micro-finance facilities to its customers (nearly 80% of whom are migrants or the unbanked section of the population) through mobile banking. [16]

In a year of 2010, mobile banking users soared over 100 percent in Kenya, China, Brazil and United States with 200 percent, 150 percent, 110 percent and 100 percent respectively. [17]

Dutch Bangla Bank launched the very first mobile banking service in Bangladesh on 31 March 2011. This service is launched with 'Agent' and 'Network' support from mobile operators, Banglalink and Citycell. Sybase 365, a subsidiary of Sybase, Inc. has provided software solution[ buzzword ] with their local partner Neurosoft Technologies Ltd. There are around 160 million people in Bangladesh, of which, only 13 per cent have bank accounts. With this solution[ buzzword ], Dutch-Bangla Bank can now reach out to the rural and unbanked population, of which, 45 per cent are mobile phone users. Under the service, any mobile handset with subscription to any of the six existing mobile operators of Bangladesh would be able to utilize the service. Under the mobile banking services, bank-nominated Banking agent performs banking activities on its behalf, like opening mobile banking accounts, providing cash services (receipts and payments) and dealing with small credits. Cash withdrawal from a mobile account can also be done from an ATM validating each transaction by 'mobile phone & PIN' instead of 'card & PIN'. Other services that are being delivered through mobile banking system are person-to-person (e.g. fund transfer), person-to-business (e.g. merchant payment, utility bill payment), business-to-person (e.g. salary/commission disbursement), government-to-person (disbursement of government allowance) transactions.

In May 2012, Laxmi Bank Limited launched the very first mobile banking in Nepal with its product Mobile Khata. Mobile Khata currently runs on a third-party platform called Hello Paisa that is interoperable with all the telecoms in Nepal viz. Nepal Telecom, NCell, Smart Tel and UTL, and is also interoperable with various banks in the country. The initial joining members to the platform after Laxmi Bank Limited were Siddartha Bank, Bank of Kathmandu, Commerz and Trust Bank Nepal and International Leasing and Finance Company. In country with roughly 30 million population, over 5 million have subscribed to mobile banking in Nepal [18] as per the recent data from Nepal Rastra Bank, [19] the central bank of Nepal.

Barclays offers a service called Barclays Pingit, and Hello Money offering services in Africa, allowing transfer of money from the United Kingdom to many parts of the world with a mobile phone. Pingit is owned by a consortium of banks. In April 2014, the UK Payments Council launched the Paym mobile payment system, allowing mobile payments between customers of several banks and building societies using the recipient's mobile phone number. [20]

In Nov 2017 the State Bank of India launched an integrated banking platform in India called YONO offering conventional banking functions but also payment services for things such as online shopping, travel planning, taxi booking or online education. [21]

In January 2019, the German direct bank N26 overtook Revolut as the most valuable mobile bank in Europe with a valuation of $2.7 billion and 1.5 million users. [22] [23]

Following is a list showing the share of people using mobile banking apps during the last three months in selected countries worldwide in 2014. The list is based on a survey conducted by statista.com including 82,914 respondents. [24]

RankCountry/TerritoryUsage in 2014
1Flag of Indonesia.svg  Indonesia 77%
2Flag of the People's Republic of China.svg  China 73%
3Flag of Thailand.svg  Thailand 64%
4Flag of India.svg  India 59%
5Flag of Singapore.svg  Singapore 58%
6Flag of Poland.svg  Poland 58%
7Flag of the United States.svg  United States 32%
8Flag of Malaysia.svg  Malaysia 54%
9Flag of Hong Kong.svg  Hong Kong 49%
10Flag of Australia (converted).svg  Australia 47%
11Flag of Mexico.svg  Mexico 45%
12Flag of Spain.svg  Spain 44%
13Flag of the United States.svg  United States 43%
14Flag of Italy.svg  Italy 42%
15Flag of the United Kingdom.svg  United Kingdom 41%
16Flag of Brazil.svg  Brazil 39%
17Flag of Canada (Pantone).svg  Canada 34%
18Flag of Portugal.svg  Portugal 31%
19Flag of France.svg  France 30%
20Flag of Belgium (civil).svg  Belgium 27%
21Flag of Germany.svg  Germany 21%
22Flag of Japan.svg  Japan 19%

See also

Notes

  1. BBVA. Mobile Banking. Centro de Innovación BBVA. p. 22.
  2. KPMG "Monetizing Mobile" July 2011
  3. "The World's first WAP Bank is Norwegian". itavisen.no. 24 September 1999. Archived from the original on 4 May 2011. Retrieved 18 October 2010.
  4. Das, Kedar; Deep, Kusum; Pant, Millie; Bansal, Jagdish; Nagar, Atulya (2014). Proceedings of Fourth International Conference on Soft Computing for Problem Solving: SocProS 2014, Volume 2. Heidelberg: Springer. p. 377. ISBN   9788132222194.
  5. "A third of banks have mobile detection". Mapa Research. 16 May 2012. Archived from the original on 28 January 2013. Retrieved 16 May 2012.
  6. Tiwari and Buse, 2007, p. 73-74
  7. Federal Reserve Board, "Consumers and Mobile Financial Services," March 2012
  8. "Archived copy" (PDF). Archived from the original (PDF) on 27 November 2010. Retrieved 9 September 2010.CS1 maint: archived copy as title (link)
  9. Papajorgji, Petraq; Pinet, Francois; Guimaraes, Alaine; Papathanasiou, Jason (2015). Automated Enterprise Systems for Maximizing Business Performance. Hershey, PA: IGI Global. p. 7. ISBN   9781466688414.
  10. Palmer, Danny. "BankBot Android malware sneaks into the Google Play Store - for the third time | ZDNet". ZDNet. Retrieved 3 October 2018.
  11. Brook, Chris (21 November 2017). "Mobile Banking Trojan BankBot Identified, Removed From Google Play". Digital Guardian. Retrieved 3 October 2018.
  12. , Mobile payments
  13. "Countries With the Most 4G Mobile Users: Top 10 Nations - Bloomberg". bloomberg.com. Retrieved 29 April 2014.
  14. "Mapping out the world's LTE coverage (It's in fewer places than you think)Tech News and Analysis". gigaom.com. Retrieved 29 April 2014.
  15. "Celebrating 9 years of changing lives". Safaricom. 10 August 2010. Retrieved 31 March 2019.
  16. Friedman, Thomas (2 November 2010). "Do Believe the Hype". New York Times.
  17. Mobile Banking Surges As Emerging Markets Embrace Mobile Finance
  18. "Over 5 Million Use Mobile Banking In Nepal". Khalti Digital Wallet. 6 November 2018. Retrieved 6 November 2018.
  19. "Nepal Rastra Bank Monthly Statistics" (PDF). Nepal Rastra Bank. 6 November 2018. Retrieved 6 November 2018.
  20. "Paym overview". Payments Council. Retrieved 21 April 2014.
  21. "SBI launches YONO, an integrated app for financial services". Business Line, The Hindu. 23 November 2017. Retrieved 24 November 2017.
  22. Smith, Oliver. "With A $2.7 Billion Valuation, N26 Overtakes Revolut As Europe's Most Valuable Mobile Bank". Forbes. Retrieved 7 February 2019.
  23. "Banking startup N26 raises $300 million at $2.7 billion valuation". TechCrunch. Retrieved 7 February 2019.
  24. "Usage of mobile banking apps by country 2014 | Statistic". Statista. Retrieved 1 September 2018.

Related Research Articles

Online banking, also known as internet banking, is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution's website. The online banking system will typically connect to or be part of the core banking system operated by a bank and is in contrast to branch banking which was the traditional way customers accessed banking services.

An e-commerce payment system facilitates the acceptance of electronic payment for online transactions. Also known as a subcomponent of Electronic Data Interchange (EDI), e-commerce payment systems have become increasingly popular due to the widespread use of the internet-based shopping and banking.

A transaction authentication number (TAN) is used by some online banking services as a form of single use one-time passwords (OTPs) to authorize financial transactions. TANs are a second layer of security above and beyond the traditional single-password authentication.

3-D Secure is an XML-based protocol designed to be an additional security layer for online credit and debit card transactions. It was originally developed by Arcot Systems and first deployed by Visa with the intention of improving the security of Internet payments, and is offered to customers under the Verified by Visa/Visa Secure brands. Services based on the protocol have also been adopted by Mastercard as SecureCode, Discover as ProtectBuy and by JCB International as J/Secure. American Express added 3-D Secure in selected markets on November 8, 2010 as American Express SafeKey, and continues to launch additional markets.

The term mobile commerce was originally coined in 1997 by Kevin Duffey at the launch of the Global Mobile Commerce Forum, to mean "the delivery of electronic commerce capabilities directly into the consumer’s hand, anywhere, via wireless technology." Many choose to think of Mobile Commerce as meaning "a retail outlet in your customer’s pocket."

Safaricom telecommunication company in Kenya

Safaricom PLC is a listed Kenyan mobile network operator headquartered at Safaricom House in Nairobi, Kenya. It is the largest telecommunications provider in Kenya, and one of the most profitable companies in the East and Central African region. The company offers mobile telephony, mobile money transfer, consumer electronics, ecommerce, cloud computing, data, music streaming, and fibre optic services. It is most renowned as the home of MPESA, a mobile banking SMS-based service.

Google Pay Send Mobile payment system developed by Google

Google Pay Send, previously known as Google Wallet, was a peer-to-peer payments service developed by Google before its merger into Google Pay. It allowed people to send and receive money from a mobile device or desktop computer at no cost to either sender or receiver.

Man-in-the-browser, a form of Internet threat related to man-in-the-middle (MITM), is a proxy Trojan horse that infects a web browser by taking advantage of vulnerabilities in browser security to modify web pages, modify transaction content or insert additional transactions, all in a completely covert fashion invisible to both the user and host web application. A MitB attack will be successful irrespective of whether security mechanisms such as SSL/PKI and/or two or three-factor Authentication solutions are in place. A MitB attack may be countered by using out-of-band transaction verification, although SMS verification can be defeated by man-in-the-mobile (MitMo) malware infection on the mobile phone. Trojans may be detected and removed by antivirus software with a 23% success rate against Zeus in 2009, and still low rates in 2011. The 2011 report concluded that additional measures on top of antivirus were needed. A related, simpler attack is the boy-in-the-browser. The majority of financial service professionals in a survey considered MitB to be the greatest threat to online banking.

Banking agent

A banking agent is a retail or postal outlet contracted by a financial institution or a mobile network operator to process clients’ transactions. Rather than a branch teller, it is the owner or an employee of the retail outlet who conducts the transaction and lets clients deposit, withdraw, transfer funds, pay their bills, inquire about an account balance, or receive government benefits or a direct deposit from their employer. Banking agents can be pharmacies, supermarkets, convenience stores, lottery outlets, post offices, and more.

Citibank (Malaysia)

Citibank Berhad is a licensed commercial bank operating in Malaysia with its headquarters in Jalan Ampang, Kuala Lumpur. Citibank Berhad operates as a subsidiary of Citigroup Holding (Singapore) Private Limited. Commencing its banking operations in Malaysia in 1959, Citibank Berhad was locally incorporated in 1994.

M-Pesa mobile banking service

M-Pesa is a mobile phone-based money transfer, financing and microfinancing service, launched in 2007 by Vodafone for Safaricom and Vodacom, the largest mobile network operators in Kenya and Tanzania. It has since expanded to Afghanistan, South Africa, India and in 2014 to Romania and in 2015 to Albania. M-Pesa allows users to deposit, withdraw, transfer money and pay for goods and services easily with a mobile device.

Multi-factor authentication (MFA) is an authentication method in which a computer user is granted access only after successfully presenting two or more pieces of evidence to an authentication mechanism: knowledge, possession, and inherence.

National Payments Corporation of India

The National Payments Corporation of India is an umbrella organisation for operating retail payments and settlement systems in India.

Mobile payments is a mode of payment using mobile phones. Instead of using methods like cash, cheque, and credit card, a customer can use a mobile phone to transfer money or to pay for goods and services. A customer can transfer money or pay for goods and services by sending an SMS, using a Java application over GPRS, a WAP service, over IVR or other mobile communication technologies. In India, this service is bank-led. Customers wishing to avail themselves of this service will have to register with banks which provide this service. Currently, this service is being offered by several major banks and is expected to grow further. Mobile Payment Forum of India (MPFI) is the umbrella organisation which is responsible for deploying mobile payments in India.

Venmo is a mobile payment service owned by PayPal. Venmo account holders can transfer funds to others via a mobile phone app; both the sender and receiver have to live in the U.S. Venmo is a type of payment rail. It handled $12 billion in transactions in the first quarter of 2018.

Oxigen Services India Pvt. Ltd., an ISO 9001:2008 certified FinTech company, is one of the major payment solutions providers in India. It is involved in micropayment of services and remittances in real time. The company was started in 2004 by an alumnus of IIT Roorkee with the help of Blue Label Telecom, and the company was listed on the South African Stock Exchange.

Peer-to-peer transactions are electronic money transfers made from one person to another through an intermediary, typically referred to as a P2P payment application. P2P payments can be sent and received via mobile device or any home computer with access to the Internet, offering a convenient alternative to traditional payment methods.

Dinarak

Dinarak is a mobile wallet, money transfer, electronic bill payment, funds disbursement service, licensed by the Central Bank of Jordan under the jomopay national switch and launched in late 2015 as Dinarak wallet as part of the Jordanian central bank's efforts to advocate financial inclusion for the un-banked segment of the Jordanian population. Dinarak allows users to deposit, withdraw, transfer money and pay for goods and services via their mobile phone. The service can be accessed by Dinarak mobile applictaion.

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