An Examination of Mobile Banking and Mobile Payments: Building Adoption as Experience Goods?

Consumer experience and familiarity with mobile devices is considered along with three relatively new communication technologies — SMS text messaging, wireless Internet access, and near field communication (NFC) — that are making important contributions to mobile financial services. Online banking and contactless payments — and consumers’ experience with them — are also studied as "building blocks" to mobile financial services. Furthermore, this analysis considers other factors that are affecting adoption patterns, including financial inclusion opportunities, data security problems, and coordination issues. Together, the building blocks and these other factors will influence how markets for mobile financial services develop.