Mobile Banking Payments Evolve with More Payment Alternatives and Virtual Assistant-Supported Transactions

Keynova Group, the principal competitive intelligence source for Mobile Banking Payments firms, has announced the results of the Q1 2024 edition of its semi-annual Mobile Banker Scorecard. U.S. Bank continued its winning streak, ranking No. 1 with the highest Overall Score for its digital user experience in Keynova Group’s competitive evaluation of 17 leading U.S. mobile bank offerings. U.S. Bank’s mobile app also placed first in the app-specific category.

The Scorecard’s findings reveal a significant evolution of mobile payments, particularly in external, inter-bank and global payments and transactions aided by virtual assistants.

“Advances in digital banking and the growing popularity of mobile banking services has prompted customers’ desire for a more independent mobile channel with full digital capabilities and services,” said Susan Foulds, managing director at Keynova Group.

“Simultaneously, the evolution of mobile payment options is a response to a wider range of consumer needs and expectations, including alternatives for various types of payees and recipients, transaction types, and faster delivery.”

Key Findings:

Mobile Payments Continue to Evolve

With mobile banking adoption becoming more widespread, baseline payment services are also advancing. Full-feature bill payment, including set-up for recurring payments, is now available from 82% of Scorecard banks’ mobile apps. Banks are also implementing usability best practices for bill payments, exemplified by 90% of banks’ mobile apps now showing the last payment amount and date for a payee in the payment scheduling flow, an increase from 70% in 2021. The availability of other payment options including wire transfers for mobile app users has more than doubled since 2021, and wires are now available from nearly 50% of Scorecard banks. As more consumers rely on digital wallets, 82% of Scorecard banks enable customers to add debit and credit cards to third-party digital wallets—increasing 70% since 2021.

Payment Alternatives Expand for Mobile Users

As banks focus on enabling consumers seamless money movement between their bank accounts, the growth of mobile account-to-account (A2A) transfers is an efficient, direct path for customers—particularly for larger dollar amounts. The number of Scorecard banks offering A2A transfers to mobile app users has climbed to 76%, an increase of 44% since 2021. Banks also recognize the importance of enabling consumers to initiate incoming payments from other financial institutions. Today, 82% of Scorecard banks allow customers to pay credit card bills from an external account, and global payment options are also on the rise. In today’s more connected economy, 29% of banks provide the option for mobile users to transfer global funds in foreign currencies.

One area mobile banking lags is Real-Time Payments (RTP). Citi offers RTP through online banking for consumer accounts, and Chase provides RTP to small business desktop users; however, none of the Mobile Banker Scorecard banks currently offer mobile RTP. Real-time payments may gain ground as the implementation of FedNow increases among U.S. banks and credit unions.

Virtual Assistants Streamline Mobile Payments Navigation

Smart virtual assistants are changing the game for mobile payments by enabling quick and informed payment guidance. Customers of more than one-third of the Scorecard banks can schedule payments using a virtual assistant, and half of those assistants can also aid customers with initiating Zelle payments. Some virtual assistants facilitate access to key account information, including deposit details and warnings of potential account overdrafts. Mobile assistants can speed the delivery of bank services and personalized insights to customers as well. Today, 24% of Scorecard banks’ virtual assistants or advanced chatbots display embedded Zelle payments, and 18% can filter transaction history to show bill payments, transfers or check deposits. And Bank of America and U.S. Banks’ virtual assistants anticipate a user’s intention—contextually aware of the customer’s location––by offering relevant payment and service options.

About the Mobile Banker Scorecard

Keynova Group’s semi-annual, fact-based Mobile Banker Scorecard, offered for more than two decades, evaluates digital user capabilities, customer experience elements, and best practices to identify evolving trends and insights that drive mobile strategy in banking. The evaluation encompasses the mobile apps and websites of Bank of America, BMO, Capital One, Chase, Citibank, Citizens Bank, Fifth Third Bank, Huntington Bank, KeyBank, M&T Bank, PNC, Regions Bank, TD Bank, Truist, USAA, U.S. Bank, and Wells Fargo. For more information please visit: https://www.keynovagroup.com/scorecards/#banking