Mobile Bill Pay, mPOS, and P2P

Fraud and Security Issues

Challenges and Opportunities

Key Finding from the Phoenix SYNERGISTICS Report:

More than half of mobile phone users find some appeal in the concept of biometrics as a means of completing a purchase or transaction.

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Highlights of the Study

This study examines consumer experience with various mobile payment activities – mobile bill pay, mPOS, and P2P.  Consumer reaction to fraud and security issues as related to mobile payments is also assessed.


National Internet Survey – 1,008 consumers age 18 or older.

Key Dates


December 2016 – Project Report available.

Strategic Questions

  • How widespread is usage of mobile bill payment?  Which access methods – biller sites/apps or FI sites/apps – are most used?  Do financial institutions face barriers in expanding usage of this service?
  • What is the consumer experience with mobile payments at the point of sale?  At which locations are these types of mobile payments most prevalent?  Are problems being encountered?
  • Have mobile P2P payments gained acceptance among consumers?  Which providers are prominent in this space?  Is there potential for wider adoption?  Are consumers willing to pay fees for immediate funds availability?
  • What experience have consumers had with mobile apps or scanners used by merchants for processing card payments?  Are these devices seen as being secure for payment transactions?
  • Are there benefits or advantages that providers should emphasize to encourage adoption of mobile payments and purchases?  What barriers or objections are impeding growth of this market?
  • What is the “next step” in innovative mobile payments capabilities?  How do consumers respond to biometric identification technology?  Will “wearables” have a place in the mobile payments space?
  • Which demographic or behavioral segments should providers focus on to increase and expand mobile payments activity?

Research Issues

  • According to the Pew Research Center, seven in ten U.S. consumers own a smartphone, representing a wide potential user base for mobile payments. Competition in mobile payments continues to be intense as new players and new services are announced on a regular basis.  Yet even with all the activity and potential in terms of user base, the market is experiencing growing pains.
  • Mobile payments can include a number of activities – mobile bill payment, mobile payment at the point of sale (mPOS), and person to person (P2P) mobile payments.  Mobile payments at the point of sale has seen a great deal of activity. The advent of Apple Pay was one of the most dramatic developments in this space.  Samsung Pay and Android Pay are now available for use by consumers. However, usage of these payment services has met with some difficulty and has not lived up to expectations.  For a number of years, P2P payment services were aggressively marketed, but activity appears to have declined. Mobile bill payment, an outgrowth of PC bill payment, has significant potential and may serve as a catalyst or first step for other types of mobile payments.  In addition, banks may be able to capture new or incremental online bill payment volume, particularly among millennial consumers who have an affinity for smartphones and apps.
  • The mobile payments market is also complex with a growing list of services and systems.  PayPal is a notable player and a major factor in the market. Projections regarding mobile payment users and transaction volume are wide and far ranging.  Some industry observers suggest that the innovators or early adopters have largely been captured and that for the remaining consumers mobile payments is a low priority.  Underlying all of this are consumers’ concerns regarding privacy, financial security, and fraud prevention. In this project, Phoenix SYNERGISTICS will evaluate the current status of mobile payments including mobile bill payment, mPOS, and P2P to assist providers in competing in this expanding market opportunity. [A89]