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Mobile Banking Use and Consumer Readiness to Benefit from Faster Payments

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  • Fumiko Hayashi
  • Ying Lei Toh

Abstract

The U.S. payments industry is currently implementing faster payments that will enable consumers and businesses to send and receive payments almost instantly at any time of day, any day of the year. Mobile banking in particular may allow consumers to realize the full benefits of faster payments. As a result, a consumer’s use of mobile banking is a good indicator of their readiness to benefit from faster payments. Fumiko Hayashi and Ying Lei Toh examine which consumer characteristics are associated with mobile banking use as well as what other factors may influence consumer readiness. They find that banked households that are younger, higher income, college-educated, employed, or that occasionally use alternative financial services are significantly more likely to have used mobile banking for transactions. Their results suggest three additional factors may influence consumer readiness to fully benefit from faster payments: the availability and cost of digital infrastructure, the availability of mobile banking and its transaction functions, and consumers’ perceptions of and savviness with mobile banking and related technologies.

Suggested Citation

  • Fumiko Hayashi & Ying Lei Toh, 2020. "Mobile Banking Use and Consumer Readiness to Benefit from Faster Payments," Economic Review, Federal Reserve Bank of Kansas City, vol. 105(no.1), pages 1-5, April.
    • Handle: RePEc:fip:fedker:87834
    DOI: 10.18651/ER/v105n1HayashiToh
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    References listed on IDEAS

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    1. Terri Bradford & Fumiko Hayashi & Ying Lei Toh, 2019. "Developments of QR Code-Based Mobile Payments in East Asia," Payments System Research Briefing, Federal Reserve Bank of Kansas City, pages 1-14, June.
    2. Gulamhuseinwala, Imran & Bull, Thomas & Lewis, Steven, 2015. "FinTech is gaining traction and young, high-income users are the early adopters," Journal of Financial Perspectives, EY Global FS Institute, vol. 3(3), pages 16-23.
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    Cited by:

    1. Hiroshi Fujiki, 2023. "Attributes needed for Japan’s central bank digital currency," The Japanese Economic Review, Springer, vol. 74(1), pages 117-175, January.
    2. Mansurali Anifa & Swamynathan Ramakrishnan & Shanmugan Joghee & Sajal Kabiraj & Malini Mittal Bishnoi, 2022. "Fintech Innovations in the Financial Service Industry," JRFM, MDPI, vol. 15(7), pages 1-19, June.
    3. Arango-Arango, Carlos A. & Ramirez-Pineda, Ana Carolina & Restrepo-Bernal, Manuela, 2021. "Person-to-business instant payments: Could they work in Colombia?," Journal of Payments Strategy & Systems, Henry Stewart Publications, vol. 15(4), pages 376-397, December.
    4. Ying Lei Toh & Thao Tran, 2020. "How the COVID-19 Pandemic May Reshape the Digital Payments Landscape," Payments System Research Briefing, Federal Reserve Bank of Kansas City, pages 1-10, June.

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