Mobile banking has become an increasingly popular method of banking in South Africa and across the world. This could be due to the fact that it is quick, easy, and can be done in the comfort of your own home. While some might feel that mobile banking is not safe, it has come a long way since its inception, with apps from major banks such as FNB now offering fingerprint recognition for logging and extra safety.
If you are interested in mobile banking for your business, knowing the statistics can help you to decide on which bank and app is right for you. It has become the norm for many South Africans, with there being 28.99 million active mobile internet users in the country in 2019.
Interested in learning more about mobile banking in South Africa? Below we take a look at the statistics for South Africa and what they could mean for a retail business.
Banking By Numbers
Before we look at what mobile banking could mean for your business, we need to look at the numbers involved. In 2019, one of the more preferred methods of payments by online shoppers is an online bank transfer, with up to 20 percent of shoppers choosing this method over others. Another interesting statistic is that 29 percent of shoppers using devices to make purchases.
Retailers who do not allow online transfers or who do not have mobile-friendly e-commerce stores will be missing out on these consumers, to their own detriment. If you are concerned that you may not have an audience for your online store, and therefore do not need to invest in mobile banking, the e-commerce audience as of 2017 numbered in the millions, reaching up to 18.43 million users.
Now, you must be wondering how many people have actually migrated from physical bank visits to digital channels? In 2018, FNB saw its physical transaction volumes declining from 68 percent in 2009 to just 29 percent – while their digital transactions grew from 32 percent to 71 percent over the same time period. Mobile banking grew by an impressive 65 percent since the bank introduced it, meaning that more consumers are opting to use their devices over desktops for banking.
As a retailer, not having the option for people to use their mobile phones to purchase your products, you will be losing out on a significant audience.
What Does This Mean For Me?
Now that you know just how popular mobile banking is, you are likely wondering what this all means for your business. Below we look at some of the benefits of allowing consumers to use their mobile device to purchase your products.
Be Where Your Customers Are
With so many people using mobile devices for banking and shopping, allowing your product to be purchased using a mobile device enables you to be directly in the palm of your consumers. If they can simply log onto their banking app, add your business details, and make a purchase, you will be more likely to make sales and it can lead to more loyal customers.
Better User Experience
E-commerce has already provided consumers with a simplified shopping experience, but when this is combined with mobile banking capabilities, the user experience is improved ten-fold. With mobile banking, consumers can search for and make buying decisions all on one device. This is the ideal solution for the younger generations, many of whom now expect this type of convenience from brands. A better user experience will help with online rankings, too.
Many consumers enjoy shopping online in the evenings, but some banking websites do not operate as they should with this increased traffic, Mobile banking, by using an app, allows consumers to finish their purchases at whatever time they please. Maintaining your own website and ensuring it is always online will drive more traffic to it and will ensure that all customers have a positive experience. In today’s digital world, being always available is vital.
Make The Most Of Mobile Banking
Mobile banking in South Africa has seen a boom in recent years, with mobile banking app user numbers doubling and growing impressively. For a retail business, being compatible with this new way of banking is vital, especially if you want to appeal to a younger audience. It allows you to be where your customers are, provide a better user experience, and always be available.
If you are interested in using mobile banking to your advantage in South Africa as a retailer, or any type of business, browse through our business categories to find someone who can help you take the first steps.