Javelin Strategy & Research Explores if the color of Money is Green...or Pink or Blue?
San Francisco, CA, March 26, 2014: Bankers and the financial services industry have much to gain analyzing ways to make digital channels more compelling, more useful, and more satisfying to the nation's 126 million women. Today, Javelin Strategy & Research released Banking with Women Customers: Strategies to Increase Digital Banking Engagement, which explores how gender plays a role in financial decision-making, the financial products women buy, what influences them as they decide whether to swipe a debit or a credit card, habits for handling essential financial chores, desire for smartphone-powered control, and need for better online and mobile personal finance management.
Women engage in more activities that point to day-to-day, on-the-go financial management, while men play a greater role in longer-term chores such as orchestrating more complex financial affairs and financial planning. As...
San Francisco, CA, March 19, 2014: The year 2013 saw an enormous influx of consumers flocking to mobile banking, with 74,000 new users joining mobile banking each day. Today, Javelin Strategy & Research released Mobile Banking, Tablet and Smartphone Forecast 2013-2018: Smart Device Adoption Drives Mobile Banking Boom, which outlines a five-year forecast of mobile banking and mobile phone and tablet adoption factoring for key drivers and potential roadblocks. In addition, the report discusses strategies for banks and credit unions to thrive as mobile banking institutions.
Among mobile bankers, 17%-18% use their phones to check balances and review recent transactions over 20 times a month. The rate of Generation Y (18-34) mobile bankers that check their balances and transactions over 20 times a month is twice that of Baby Boomers (48-68). Given this high level of interaction, financial institutions (FIs) can drive the popularity of...
San Francisco, CA, March 5, 2014: The e-commerce market is evolving at a spectacular rate, and never before has it been more competitive. In 2013, consumers spent a total of $351.9 billion online. Today, Javelin Strategy & Research released Online Retail Payments Forecast 2013-2018 report which evaluates forecast changes in the e-commerce market, tracks the payments mix, and identifies key drivers of market change. Additionally, the report evaluates online share and transaction growth of credit cards, debit cards, online alternative payments like PayPal and Amazon Payments, online credit services like Bill Me Later, prepaid cards, and gift cards.
Do not be deceived by the use of "alternative" in online alternative payments, as these payment options have clearly become mainstream for online retail payments. Over 80% of online shoppers...
San Francisco, CA, February 20, 2014: E-commerce transactions constitute a growing share of the overall retail market. Merchants and payments processors alike are expanding their platform solutions for card-not-present (CNP) payment acceptance and processing. Today, Javelin Strategy & Research released E-Commerce Platform Review - Fueling Online Shopping for Tomorrow which compares the capabilities of seven leading e-commerce platform providers.
Consumers are relying on e-commerce platforms as reliable shopping venues with 9 out of 10 consumers having made an online purchase just last year. There are fewer consumers that have not had an online shopping experience, with 7% have never shopped online, compared to 22% just four years ago in 2009. Today's consumers are more sophisticated online and vendor solutions need to continue to evolve. Javelin's study evaluates e-commerce processors' platforms in five categories: core back-end processing functions, domestic payments, international payment processing, fraud and security features, and mobile capabilities.
San Francisco, CA, February 12, 2014: 2013 marked an important mobile payment's "first," with tablet payments comprising almost half of all mobile commerce. Today, Javelin Strategy & Research released Mobile Payments Market: Tablet Payments Surge as Overall Mobile Retail Sales Top $60 Billion, an in-depth study of the mobile shopping market, including market sizing of online, app and proximity payments by device type and a five-year forecast of mobile proximity payments and strategies for merchants, vendors, and mobile payment and wallet platforms to expand in this market.
In 2013, tablets accounted for a massive $28.7 billion in mobile online commerce, or over 50% of the entire mobile online payments space. That is quintuple 2012's $5.1 billion. The portion of commerce generated through tablets is fueled by rising device ownership, as mobile consumers ownership of the device doubled since 2012. As tablet ownership rates continue to...
Number of Identity Fraud Victims Rose to 13.1 Million, but Fraud Decreased to $18 Billion
Dramatic Increase in Account Takeover
Data Breaches Become Even More Damaging
Fraudsters use Stolen Information with eBay, PayPal, Amazon and other Internet Accounts
SAN FRANCISCO, February 5, 2014 – The 2014 Identity Fraud Study released today by Javelin Strategy & Research (@JavelinStrategy), reports an increase of more than 500,000 fraud victims to 13.1 million people in 2013, the second highest number since the study began. Account takeover fraud hit a new record in incidence for the second year in a row and accounted for 28 percent of all identity fraud. Additionally, fraudsters increasingly turned to eBay, PayPal and Amazon with the stolen information to make purchases. In 2013, data breaches became more damaging, with one in three people who received a data breach notification letter becoming an identity fraud victim. Encouragingly, the amount criminals stole decreased by $3 billion to $18...
Javelin Finds Retailers Embrace Social media to Enhance In-Store shopping Experience
San Francisco, CA, January 23, 2014: Social networks have become an additional arm of payments and retail, rather than just a virtual place for individuals to socialize. Today, Javelin Strategy & Research (@JavelinStrategy) released the Social Media Payments: Redefining Shopping for a New Era report, which explores the growth of social networks and the changes to retail shopping, consumer behavior, and payment transactions. It also examines the demographics of social shoppers, their attitudes toward payment and alternative payment means, and brands they trust when making purchases on social networks.
Sixty-two million adults have purchased on a social network in the past 12 months. Surprisingly, the most likely purchase made on a social network is not a virtual or digital item but actually a physical item like clothing, shoes, electronics, etc. Yet social networks might not be ready to fill in for Amazon or eBay in the immediate future, but social-network sites are beginning...
San Francisco, CA, January 22, 2014: The results of Javelin Strategy & Research (@JavelinStrategy) recent study of credit card issuers' security show that Bank of America, USAA and Wells Fargo are topping all competitors in prevention, detection and resolution. Javelin's ninth annual credit card issuers' study scores 24 of the nation's top credit card issuers – providing credit card issuers with insight into recent fraud trends, and ways they can improve their security posture.
Card fraud is highly pervasive. Affecting 7.5 million Americans in 2012, total card fraud losses reached almost $8 billion in 2012. Credit card accounts were the most common account takeover target, affecting 36% of consumers who experienced account takeover in 2012. The scorecard analyzes the security features of the nation's top credit card issuers using Javelin's Prevention, Detection, and Resolution Model™, which has become an important tool for issuers in thwarting fraudsters.
"Retailers, common targets for data breach crimes, scored lowest in Prevention and among the lowest overall. The three retailer issuers reviewed placed lowest in Prevention...
San Francisco, CA, December 17, 2013: The results of Javelin Strategy & Research's annual Mobile Banking Vendor Scorecard show that FIS, Monitise and Fiserv are outperforming all competitors with mobile banking solutions. Javelin's fourth annual Mobile Banking Vendor Scorecard evaluates vendors' solutions—standard out-of-the-box and customizable—to assess critical categories of features and functionality that will drive mobile banking adoption among consumers.
At long last, 100% of the top 25 retail financial institutions offer downloadable mobile banking applications, up from 84% in 2010. With mobile banking usage on the rise, vendors have a strong case to present to financial institutions still skeptical on the value of investing in the channel. As adoption rises, financial institutions with strong mobile banking capabilities will find themselves increasingly appealing to the growing base of smartphone owners.
Financial institutions need to adopt a strategic plan for mobile banking," according to Mary Monahan, Research Director of Mobile at Javelin...
Javelin Strategy & Research Finds Data Breach the Primary Source of Misused Payment Cards
San Francisco, CA, December 12, 2013: Over the past several years, criminals have proven immensely capable of compromising massive volumes of credit and debit card data by breaching the systems of organizations that store or transmit payment information. Among the most recognizable businesses to do so, merchants and processors have become high-profile targets. Javelin identified a connection between consumers being compromised in data breaches and later actually becoming a fraud victim. Today, Javelin Strategy & Research (@JavelinStrategy) released the Payment Card Data Security Report: Combatting Breaches, Perfecting EMV and Safeguarding Mobile Payments, which found that the number of notified card-breach victims who suffered fraud increased 340% from 2010 to 2012, resulting in $4.8B in fraud losses.
Despite industry guidelines to protect payment card data, 15.8 million consumers were notified that their card information was compromised in 2012. Criminals are motivated...
EZShield tops Best in Class as Identity Protection Service, while LifeLock and IdentityForce Earn Top Awards too
San Francisco, CA, December 4, 2013: The results of Javelin Strategy & Research’s annual Identity Protection Services study show that EZShield, LifeLock and IdentityForce are among the best in preventing, detecting and resolving identity fraud. Javelin’s seventh annual Identity Protection Services study examines the issues affecting consumer adoption of identity protection services and the means by which service providers can maximize their share of an increasingly consolidated market.
“The identity protection industry has historically been dominated by several core products. However, providers are beginning to leverage new technologies and relationships in order to protect consumers from a broader variety of fraud threats,” said Al Pascual, Senior Industry Analyst, Security, Risk & Fraud at Javelin Strategy & Research.
- EZShield Earns Best in Class Identity Protection Service Provider. Javelin awarded Best in Class to EZShield with impressive prevention, detection and resolution capabilities....
Bank of America tops Best in Class as Mobile Banking Provider, while BBVA Compass, Chase, Citizens Bank, USAA, Wells Fargo, and others Earn Top Awards too
San Francisco, CA, November 21, 2013: The results of Javelin Strategy & Research’s annual Mobile Banking Financial Institution study show that Bank of America, Citizens Bank, USAA, BBVA Compass, Wells Fargo, Chase and others banks are topping all competitors in mobile banking. Javelin’s sixth annual Mobile Banking Financial Institution study evaluates the abilities of financial institutions (FIs) to meet consumers’ growing mobile banking needs as they evolve from mobile account monitoring to mobile money movement and beyond.
At long last 100% of the top 25 retail financial institutions offered mobile banking offerings, up from 63% in 2010. Growth in mobile banking adoption was strong in 2013, as financial institutions bolstered their offerings as consumers continued to adopt new mobile devices.
“These financial institutions are moving ahead of the competition by offering advanced features like enrolling in mobile banking using a mobile phone, mobile bill payment, actionable alerts and consistent experience across all banking channels,” according to Mary Monahan, Research Director of Mobile at...
San Francisco, CA, October 30, 2013: Although still in its infancy, paying bills on mobile devices is primed to grow rapidly with over 12.5 million Americans already using mobile bill pay. Javelin Strategy & Research released How Mobile Can Open the Door to $2.1 Trillion in Bill Payments report which sizes the current flow of dollars through the bill-payment market, including the breakdown of online, mobile, and offline payments. The report provides an 11-point analysis of what consumers desire when paying their bills, identifies banks with market-leading adoption, and maps out strategies for upgrading and marketing the bill-payment process.
The first wave of consumers already is typically pulling out a smartphone or tablet to pay, and mobile bill payments are primed for rapid growth.
Javelin estimates Americans pay $2.1 trillion annually to pay seven bills that are central to a consumer's day-to-day living and form the foundation for a deeper borrowing relationship: major credit cards usable...
San Francisco, CA, October 23, 2013 The stakes are high for the adoption of mobile wallets with an existing U.S. market of over $4 trillion up for grabs. Yet no single company has been able to crack the code for mobile wallets. Javelin Strategy & Research's annual 2013 Gang of Five report analyzes the current strategies of the existing contenders, Apple, Google, Amazon, Facebook, and eBay's PayPal, versus those of the major payment networks, largest financial institutions, and top mobile network operators. The report details which players are winning and losing and what needs to happen to gain consumer mobile wallet adoption.
Each member of the Gang of Five is working mightily to remain in position by providing apps, games, products, books and movies to retain eyeballs. Javelin's TIP (Trust-Innovation-Privacy) Model analyzes the competitive space of mobile wallets from the consumer perspective. Over the past year, PayPal moved up into the top spot as the most trusted brand surveyed and the firm with the highest ratings for privacy protection. With one in five consumers ready to adopt a mobile wallet in the next year, PayPal is in a great position to lead in mobile wallet...
Javelin Strategy & Research Examines 12 Major Mobile Wallet Providers to Solve the Merchant and Consumer Equation
San Francisco, CA, September 25, 2013 With an annual U.S. retail POS market of almost $4 trillion up for grabs, the stakes are extremely high. But slow adoption, lack of merchant enthusiasm, fragmented offerings, and blocking by competitors has resulted in stalled growth for mobile wallets. Today, Javelin Strategy & Research (@JavelinStrategy) released the firm’s Mobile Wallet Game Changers: A Glimpse into 2014's Projected Winners and Losers report which provides competitive analysis of 12 major mobile wallet providers, breaking down the main changes of each provider over the last year and measuring their attractiveness in the eyes of consumers.
More mobile wallet players competed for less space in 2013, as small and large competitors positioned themselves in anticipation of coming growth in the area. The largest movement has been in digital wallets, with growth in mobile...
Javelin Strategy & Research Identifies 29 Million Consumers Banks Could Convert to Paying Bills at Their Websites
San Francisco, CA, September 12, 2013: Financial institutions must take action to alter the fate of flat online banking adoption through 2018. Javelin estimates banks can increase household adoption of online banking by 22% by targeting 29 million Americans who are just one step away from paying their bills at the bank. Today, Javelin Strategy & Research(@JavelinStrategy) released 2013 Online Banking and Bill-Payment Forecast: 29 Million Holdouts Primed for FI Bill Pay, a report that identifies a new segment of nearly 11 million consumers --Digital Drifters, who bank online and use mobile banking but do not pay bills at their bank. A majority of them pay bills online – they just do so at a biller’s websites. The report provides key recommendations to cater to these young, tech-savvy, mobile-minded consumers who crave control as they monitor and manage their growing finances.
More than half of young, savvy Digital Drifters perceive paying bills...
Javelin Strategy & Research Finds That Remittance Customers Are High-Tech and Mobile-Savvy Consumers
San Francisco, CA, September 12, 2013: Today, Javelin Strategy & Research (@JavelinStrategy) released International Remittance Transfers: How to Tap $2.1B in Cross-Border Revenue. The firm’s report provides revenue market sizing for remittance providers, an in-depth overview of the current users and recommendations for maximizing providers’ return on investment. Javelin estimates that remittance providers collected $1.55 billion from outbound U.S. remittance transfers in 2012. Yet, providers failed to collect over a half billion ($573 million) in revenue because consumers elected to send cash or checks through the mail, missing out on an opportunity to collect revenue on the transaction.
“Providers are leaving money on the table when consumers choose to use non-official means to send money internationally,” said Aleia...
Javelin Strategy & Research Assesses Emerging Bank Services of Bank of America, Citi, Wells Fargo, PNC, Chase, USAA, SunTrust, and 13 other Banks
San Francisco, CA, August 21, 2013 –Large investments in emerging services like mobile and online do not always translate into higher customer satisfaction or even high financial performance. Javelin Strategy & Research, a leading financial services analyst firm, is releasing the company’s new competitive benchmark service, Outperform, which is a result of analyzing over 20 leading financial institutions and provides insights to improve each banks’ return on investment on emerging bank services---mobile and online banking services.
Online banking adoption has been growing rapidly at many large financial institutions and rippling through to the smaller tiers. Over 70% of Wells Fargo customers frequently log in online, compared to Bank of America (65%). While online banking has been viewed as an advanced service, you would expect these banks to capture large numbers of early adopters. Yet, Wells Fargo has fewer customers who consider themselves early adopters of technology or new services, at similar levels to community banks customer technology profile. Bank of America and J.P. Morgan Chase have the...
Javelin Strategy & Research Identifies Virtual Currency moving from Digital Swords to Physical Goods
San Francisco, CA, August 7, 2013: Virtual currency has evolved far past its humble beginnings as an in-game currency. More than 47 million U.S. adults purchased $4.65 billion worth of virtual currency in 2012, and spend on virtual currencies is expected to more than double in 2013. Today, Javelin Strategy & Research released the firm’s Virtual Currencies 2013– Crossing the Chasm report, which assesses the transition of virtual currencies from the digital world to the physical, specifically focusing on the shift from simple, closed-loop virtual currencies to bidirectional virtual currencies used for real-world fiat exchange.
Without users, virtual currencies are nothing but an academic experiment. Two types of “real-life” purchases increased among virtual currency users: digital entertainment downloads and vouchers redeemable for physical goods. In 2011, 16% of...
Javelin Strategy & Research Explores the Initial Wave of Consumers Completely Opening Banking Accounts on Smartphones and Tablets
San Francisco, CA, August 6, 2013. The fact that 88.5 million Americans attempted to open an account online or with a smartphone or tablet device in the past 12 months underscores how far digital account opening has come in a few short years. Nonetheless, its potential remains largely untapped, especially as consumers place growing importance on mobile capabilities. Today, Javelin Strategy & Research released the firm’s How to Upgrade Online and Mobile Account Opening for an Omnichannel Era report, which analyzes the state of online and mobile account opening in contrast to traditional branch applications. The return on investment from digital account opening clearly begins with acquiring customers, but its potential value also can extend to retention, cost avoidance, and revenue.
The initial wave of consumers applying online and opening account has grown to include consumers relying on smartphones and tablets for account openings....
Javelin Strategy & Research Analyzes Retail Payments Fraud Prevention in the Age of Data Breaches and Malware
San Francisco, CA, July 30, 2013: In 2012, online retail payments reached 7.4% ($318 billion) of all retail transactions. The thriving online market is an increasing target for fraudsters to both steal and misuse consumer data as data breaches and malware evolve as the primary means to acquire this valuable information. Today, Javelin Strategy & Research released the firm’s first Online and Mobile Retail Payments Authentication report explores a variety of authentication options as well as consumer’s willingness to adopt these processes in future online and mobile shopping.
Consumers are Familiar with A Wide Variety of Authentication Technologies
Most consumers are not familiar with authentication technologies for use during online retail payments, but that is about to change. While two-thirds of consumers say they are well-acquainted with...
Javelin Strategy & Research Identifies Mobile Deposit Changing the Role for Branch Interactions
San Francisco, CA, July 9, 2013: Mobile bankers are valuable bank customers; rich, young, and flush with profitable bank products and services. And the service is saving institutions money; as the number of mobile bankers has grown, branch visitation has decreased considerably. Today, Javelin Strategy & Research released Leveraging an Omnichannel Approach Financial Institutions Fight for $1.5 B in Mobile Banking Profits, which provides best practices and recommendations to encourage consumers to maximize the potential of their mobile devices – and save financial institutions money in the process.
The evidence is growing that the rising consumer adoption of digital technologies alters the branch-based distribution model. Since 2010 branch visits have dropped dramatically by 10 percentage points, while mobile banking has risen by same amount. For the typical FI, an in-person transaction costs $4.25 while...
Javelin Strategy & Research Examines the Very Real Connection between Data Breaches and Identity Fraud
San Francisco, CA, June 5, 2013. Contemporary research on the financial impact of data breach events has focused on costs to businesses and institutions, but largely ignored their effect on the consumers whose personally identifiable information (PII) is compromised. Today, Javelin Strategy & Research (@JavelinStrategy) released the firm’s first ever “2013 Data Breach Fraud Impact Report: Mitigating a Rapidly Emerging Driver of Fraud,” which demonstrates the real connection between data breach and consumer fraud. A single massive data breach can result in billions of dollars in consumer fraud losses.
Data breach victimization has been increasingly correlated with fraud incidence over the past three years. Over 50% of fraud victims in 2012 were also data breach victims. Fraudsters are improving at mining large data sets at the same time as businesses and institutions of all types are facing an...
Javelin Analyzes Prepaid Card Market Momentum and Opportunity for Issuers
San Francisco, CA, May 8, 2013. The dynamics of the card-issuing business and those of the banking industry have changed dramatically in recent years as an array of economic, regulatory, and governmental factors and initiatives have combined to drive expansion in the use of prepaid products. Today, Javelin Strategy & Research released the firm's Checking vs. Prepaid: Threat or Opportunity? report, which evaluates selected prepaid cards in the market today to determine how fees for prepaid products compare to those of basic checking accounts, as well as differences between bank and non-bank prepaid products.
From an estimated $150 billion this year, prepaid purchase volume is expected to grow by almost $45 billion over the next five years. Over the last three years,...
Third Party Analyst Firm Releases First 2013 Mobile Point of Sale (POS) Business and Market Impact Report
San Francisco, CA, April 29, 2013 – Mobile POS (point of sale) acceptance is attracting small merchants to big-box retailers, posing a growing threat to traditional terminal-based solutions and vendors. Javelin Strategy & Research released the firm's first "Mobile Point of Sale (POS) Business and Market Impact 2013" report, which provides an actionable market sizing of the merchant marketplace and feature comparisons among 14 selected leading solution providers in the POS space. In addition, the report explores provider strategies, best practices and recommendations to capture and expand market share.
Mobile POS expands the existing market for the card payment networks, as Javelin estimates that mobile POS could expand current payment card acceptance by as much as 20 million firms if eligible firms started accepting payments. This impact could account for up to $1.1 trillion in annual new‐card payments.
“The new mobile POS players pose a threat to the traditional POS terminal and acquiring businesses,...
San Francisco, CA, April 4, 2013 – At 93% of total U.S. retail dollar volume, the point of sale (POS) retail market towers above the online market and will continue to do so for years to come. But the growing popularity of thedigital realm has fundamentally altered the nature of the POS, as brick-and-mortar retailers have had to embrace elements of mobile and online channels in order to remain competitive. Today, Javelin Strategy & Research releases the firm's annual POS 2013-2018 Forecast, which evaluates the actual and forecast changes in the retail POS market, tracking payments mix data and identifying key drivers of market change.
Mobile POS Proximity Payments Will Increase 11-Fold
(percent of payment volume)
Although mobile POS proximity payments made up just 0.01% of total retail POS volume in 2012, mobile devices (i.e., smartphones and...
Javelin Strategy & Research Awards Bank of America and JPMorgan Chase for Top Rankings in Identity Fraud Security
San Francisco, CA, March 14, 2013 – In 2012, the total losses resulting from account takeover and new account fraud each rose by approximately 50% over the previous year. These two fraud types impact consumers most severely, and are historically more difficult for FIs to prevent and detect than any other major fraud type. Today, Javelin Strategy & Research releases the firm’s 2013 Banking Identity Safety Scorecard. For eight years, Javelin has evaluated the top 25 FIs by deposit size based on their consumer‐facing security features in the three fraud stages of Javelin’s Protection, Detection, and Resolution Model™.
Javelin’s research found that 5 of the top 25 FIs prohibit the use of the Social Security number (SSN) to authenticate a user’s identity, up from none in 2011. While this represents a major improvement, 20% adoption is still distressingly low, especially with account takeover fraud at a seven‐year high. Yet, a promising consumer empowerment trend is finally gaining momentum among FIs – 40% of FIs are leveraging customers’ unique knowledge of their own financial...
Javelin Strategy & Research Uncovers How the Underbanked “Bank” Outside of the Bank
San Francisco, CA, March 6, 2013– When it comes to paying bills, too often the nation’s 37 million underbanked American’s do it using hard and costly ways: in cash, and in person, by mail, or by phoning call center’s. Javelin Strategy & Research’s latest report outlines opportunities for financial institutions, billers, mobile carriers, and bill-pay innovators to enhance the online and mobile options with electronic payments for this underserved population. This report provides a four-part profile of underbanked Americans—those without a checking account. The report also includes an analysis of how they typically pay seven of the most common bills and recommendations for motivating them to increase the use of online and mobile bill payments.
“The underbanked are not a homogenous group that can be easily targeted with a one-size fits all approach,” said