Will charging for mobile banking apps slow their rate of adoption?
We could see an interesting case study in that debate soon, as PNC bank is reportedly considering charging for its mobile check depositing service.
PNC’s mBanking features are, as they are for most major banks, currently free for customers. But according to this recent Mobile Commerce Daily piece, the potential to add revenue may be too great a temptation for banks to resist: even if it means fewer people us their services.
“In a low interest rate, post-Durbin world, banks are looking for ways to monetize any service they offer. Mobile-based services are not exceptions,” David Kaminsky, emerging technologies analyst at Mercator Advisory Group told Mobile Commerce Daily.
“The reasoning behind this type of measure would be that although mobile banking adoption would slow, the slower adoption would be more profitable. I’m not sure if that is the case, but it would be the only thought process that would lead to a decision like this.”
If consumers are willing to pay for mobile banking, they’d be producing value for banks in two ways: the additional revenue created, as well as the savings received from online banking processes. According to the PNC executive, banks save around $3.88 per transaction with mobile deposits compared to deposits made via teller.
The executive said PNC would only charge for mobile deposits, and if it goes that root it will already have company. U.S. Bank charges $0.50 per each check deposited via mobile, although it’s unknown how – if at all – that’s affected their mChecking adoption.
Still, Kaminsky remained convinced that charging anything for a mobile banking service would indeed curtail adoption.
“Consumers have shown time and time again that they are highly reluctant to paying fees associated with checking accounts, and I’m skeptical that this would prove to be different,” he said.
“This would without a doubt slow the adoption of mobile banking.”
To see more of Kaminsky’s quotes, read the full Mobile Commerce Daily piece here.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More