Mobile Banking Transactions to explode by 2011

Juniper Reseach has published a new set of researches which point out to a massive growth in the number of mobile banking transactions, hoping that it will grow from 2.7 billion to 37 billion by 2011 while the number of people using it will increase tenfold.

According to the research company, by 2011, there will be more than 800 million consumers using their mobile phone to pay for services, access their bank accounts and conduct transactions, all from their mobile phones.

China and the far east are pegged to be the biggest market for mobile banking and already South Korea and Japan users have been early adopters.

Juniper however reckons that there are still a number of obstacles that need to be solved first; security for example is still a major deterrent as is payment transaction costs and financial regulations.

The rise of smartphones and always-on wireless connectivity will make it easier for customers to connect to banking services while on the move.

A separate Harris Interactive US study showed that more than half of Americans do not want to use their mobiles for financial transactions.