Banks’ payment revenue may be at risk as the mobile payments value chain evolves, according to the new KPMG report.

As payments made from mobile phones and other mobile devices increasingly become a popular preference over checks, cash and even debit cards, many banks around the world are rapidly re-evaluating and evolving their business models. New competition from non-traditional sources such as Apple, Google and PayPal is forcing banks to move quickly in order to preserve their payments revenues and take advantage of emerging mobile platforms, according to new report from KPMG International.

“Regarding mobile payments, I think that bank interests coincide with customer interests. On one hand, it is convenient for banking customers to use mobile devices, such as mobile phones, for basic banking operations. On the other, our analysis shows that processing mobile payments costs banks ten times less than transactions using a PIN pad, and fifty times less than using traditional channels such as bank branches.” said Alexander Sokolov, Partner, Head of Financial Services, KPMG in Russia and CIS. “In terms of the Russian market, I believe that many banks will adopt a "wait-and-see" approach, and will not start offering such a service until it is clear which mobile technology platforms are most effective for payments.”

Almost 85 percent of respondents to KPMG International’s survey of banking and financial services executives saying that mobile payments will have significant importance to their business within the next one to four years.
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