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Consumer Credit Card Mobile Apps: Waiting for Prime Time

Mercator Advisory Group Announces New Research Examining Developments and Potential in Mobile Apps for Credit Cards

Boston, MA -- With the U.S. on the eve of the era of mobile phone-based payments and with mobile banking applications gaining consumer traction, mobile apps for credit cards may become critical features of credit card accounts in the future. Surprisingly, many issuers bury their current credit card apps in a broader online/mobile banking site and fail to feature the full extent of their mobile app features.

Mercator Advisory Group's latest report, Consumer Credit Card Mobile Apps: Waiting for Prime Time?, reviews consumers current mobile banking activities and the positioning of leading issuers' mobile apps today, and discusses future fields of mobile app development.

"Credit card issuers may be waiting for the highly anticipated dawn of the era of mobile payments, with its presumed dependence upon Near Field Communication-equipped smartphones and POS terminals. As discussed in the report, enabling a card account on a smartphone may indeed open new frontiers for account management tools and other mobile apps. However, these capabilities also open new battlefields for competitive account offerings, and issuers not serving their account holders," growing mobile appetites may find themselves at a competitive disadvantage. The era of mobile payments is not yet here, and the road to NFC-based payments seems longer every day, so there is still time to develop competitive mobile apps to intrigue and please account holders," comments Ken Paterson, VP for Research Operations at Mercator Advisory Group and the primary author of the report.

This report reviews Highlights of the report include:

  • Current usage of banking apps and alerts
  • Smartphone penetration of the adult population in the U.S. and consumer attitudes toward mobile security for banking and payments
  • Opportunities for credit card issuers (especially those with broad retail banking business lines) to highlight the availability of mobile credit card apps and the value they can deliver to cardholders
  • Reasons for major issuers' delay in developing credit card apps that can leverage new mobile capabilities
  • The potential mobile payments offer for differentiating apps for account management, personal financial management, rewards and offer presentment, and security

One of the nine exhibits included in this report:

Source: Mercator Advisory Group Customer Monitor
Survey Series 2011, Questions 34,38,39

This report contains 18 pages and nine exhibits.

Companies mentioned in this report include: American Express, Bank of America, Barclays, Capital One, Chase, Citibank, Discover, HSBC, US Bank, USAA, and Wells Fargo.

Table of Contents

Executive Summary

Introduction

Consumer Use of Mobile Banking and Mobile Card Apps

  • Above Critical Mass
  • Consumers Still Web-Focused

Credit Card Apps Today

  • Hidden in Plain Sight
  • Account Management
  • Other Benefits Featured

Credit Card Mobile Apps: A Vision of Prime Time

  • Issuer Dashboard
  • PFM Wallet
  • Embedded Closed-Ended Credit/Customized Credit Offers/Credit Manager
  • Coupon Wallets and Merchant Deals
  • More Than Fraud Apps
  • Video Customer Service
  • Parting Thoughts

Copyright Notice

Figures and Tables

  • Figure 1: Mobile Banking Has Already Reached Critical Mass
  • Figure 2: Demographics of Current Mobile Banking Users
  • Figure 3: The Web Remains the Most Used Mobile Channel for Financial Interaction
  • Figure 4: Upside Potential Exists for Migrating Selected Online Activities to Mobile
  • Table 1: Mobile App Users Are More Fully Immersed in Card Functions Than Are Mobile Web Users
  • Table 2: Positioning of Credit Card Mobile Apps
  • Table 3: Account Alerts
  • Table 4: Account Management Mobile Apps
  • Table 5: Discounts, Coupons, Rewards, Shopping, and Travel Apps
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