By: Kelly Anderson
Banks and other financial institutions that offer reward programs and mobile payment channels are likely to increase customer traffic in the future as demand for these services rises.
A new study conducted by IDC Financial Insights reveals the popularity of mobile payment platforms has more than doubled since 2011, with 33 percent of respondents saying they now use this channel. Having access to a variety of payment options, including online bill pay, is central to many Americans' banking decisions. The study revealed that 73.5 percent of consumers now utilize online bill pay, making this method the most dominant payment platform in the country.
In addition to convenience, Americans want to be rewarded for their spending, and analysts say that offering reward programs is a channel that more financial institutions need to develop further to stay competitive.
"The advent of new card-linked offer programs should increase the influence of rewards on the average consumer, however, this will depend on how many banks choose to move ahead aggressively with these programs, and how many merchants choose to support them," said IDC Financial Insights practice director Aaron McPherson.
This may have an adverse effect on larger institutions that are now doing away with free checking and scaling back their rewards programs. Many smaller institutions, such as community banks and credit unions, have managed to continue offering reward programs and free checking throughout the economic downturn.