Usage of cell-phone banking tends to increase with age. In fact, almost a quarter of South Africans with bank accounts who are aged from 46 to 55 have used their cell phones for banking, versus less than 10 percent in the youth and young adult markets.

The research, which formed part of the year-long Mobility 2006 research project, was funded by FNB, Virgin Mobile and Verizon Business. It was found that 87 percent of those who have tried cell-phone banking, have used it to access balances. The next most common usage is purchasing airtime through the cell phone. And, while a quarter of cell-phone bankers have used their handsets to pay accounts, only 17 percent of cell-phone banking users have made once-off payments from their cell phones.

'It is clear that mobile commerce is happening, but only for very specific activities,' says Arthur Goldstuck, MD of World Wide Worx. 'There is a strong relationship between the need for banking access and likelihood of using it. And, once the costs of cell phone usage come down, we will see a rapid increase in uptake.'

The research is supported by the experience of FNB, which was the first bank to introduce banking via SMS in 2005.

'Cell-phone banking is taking off right now because we are giving people what they need, rather than focusing on what technology can do,' says Len Pienaar, CEO of FNB Mobile and Transact Solutions. 'While many users do not yet feel comfortable with transactions, it is clear that there is a great need for information about their accounts and the purchases of prepaid products, and a growing need for paying accounts without having to go to a bank. Once more users are ready to transact via their cell phones, we will be ready for them.'