'Adapt or die' as mobile payments to top 1.8bn

Banks must 'adapt or die' when it comes to the digital world, with a number of people using mobile banking set to double in the next four years.

According to figures from accountancy firm KPMG, 80 million people used mobile banking in 2014, but this will reach 1.8 billion by 2019 - more than 25 percent of the global population.

Mobile is already the largest banking channel by terms of volume of transactions, according to KPMG's figures which used primary survey data supplied by UBS Evidence Lab, but the sector is about to experience rapid growth.

The Global Mobile Banking Report suggests the volume will increase as mobile banking and payment systems are integrated into other technologies.

INVEST NOW

Banks must adapt of die. Mobile banking is clearly supplanting all other channels as the main portal between the bank and the consumer. Many banks have already risen to the challenge and invested in new infrastructure and pioneering initiatives, but others must follow suit and commit to building both immediate propositions and ongoing capability to keep up with the pace of change.

'Banks must overcome substantial infrastructural challenges and reconcile consumers’ appetite for ease of use with greater security. Boldness will be required to overcome these challenges and the only sure-fire winner will be the consumer'.

DEVELOPING WORLD

KPMG claims that in the short-term, the availability of mobile banking is a key factor when customers choose to switch provider. Adoption rates are highest in developing countries reaching 60-70 per cent in China and India, as opposed to developed nations such as the US, UK and Europe.

Samsung has partnered with MasterCard for the European launch of its contactless payments service Samsung Pay.

The Korean manufacturer will use MasterCard's Digital Enablement Service (MDES) to allow users to make purchases through their mobile devices.

"Both organisations are committed to ground breaking tech innovations that will deliver on the promise of a true mobile wallet," said Global Head of Samsung Pay - Injong Rhee.

Samsung Pay is scheduled to launch in the US and Korea later this summer, and now the manufacturer and Master Card will work with card issuers to bring the service to Europe, but the firm did not reveal a launch date.

MDES was announced in 2013 and MasterCard claims 'millions' of accounts have been 'tokenised', which provides the security aspect of the transaction when making digital wallet services.

MasterCard Europe president Javier Perez added; "With the continued global growth and reliance on connected mobile devices, we are delighted to expand our relationship with Samsung by extending the reach of Samsung Pay and MDES to cardholders in Europe. Europeans have been leading the way in the adoption of new ways to shop, buy and make payments. Through our strong partnership with Samsung we look forward to continuing to drive innovation in mobile commerce by creating a simple and secure digital payment experience for consumers"

The news comes following the UK launch of Apple Pay on 14 July '15. The service is currently available in more than 250,000 locations across the country. No more digging for your card in your wallet, pay using your iPhone 6, Apple Watch or iPad. Banks participating in Apple Pay;

• American Express • first direct • HSBC • NatWest • Nationwide Building Society • MBNA • Royal Bank of Scotland • Santander • Ulster Bank

Ofcom asks industry to help rewrite portability rule book

Ofcom has launched a consultation on the process used to change mobile provider and port their number.

The current process requires a consumer wishing to port their number to first inform their provider and request a Porting Authorisation Code (PAC), which they must provide within 24 hours. That code, which is valid for one month, must then be issued to their new provider in order to retain their existing number. Ofcom said it is concerned this process has led to some operators making it deliberately difficult to switch provider and as of last month, opened an investigation into arrangements for cancelling services.

The investigation comes after it was revealed that operators were using 'dirty tricks' to delay providing PAC codes and ultimately preventing customers from leaving. The regulator has already requested feedback from UK operators on the current system and is now inviting comments from operators and other parties involved in the industry for ideas on how to change the porting process. Interested parties must submit comment by October 6th.

Ofcom has already suggested the introduction of its 'gaining-operator led service', that would cut out the part where customers have to contact the network they are leaving.

Ofcom requested users with suggestions go online to www.ofcom.org.uk and select the stakeholders option, which brings up contact details where ideas can be submitted.