If mobile banking is going take off in North America it must be available to majority of handset users, including prepaid and low-income consumers.

This was the key finding in research firm Yankee Group's mobile banking report, which also notes the difference between mobile banking overseas versus North America.

"Mobile operators and banks can take significant lessons from overseas initiatives and apply them here in the United States," said Patrick Monaghan, senior analyst at Yankee Group, Boston.

"It's important to target low-income people," he said. "There are takeaways that allow adoption of mobile banking. It needs to be less expensive, mobile phone providers need to target the right segments of the population and sales and marketing needs to address ease-of-use and convenience of cost."

In countries such as South Africa and the Philippines, mobile banking keeps low-income consumers' money safe by reducing fees and therefore making it more affordable. North American providers market mobile banking to more affluent and technologically advanced users as more of a convenience than a service.

The report found that mobile banking has gained some traction in North America over the past year or so, but it isn't quite a reality yet.

The success of mobile banking depends mostly on overcoming the cost of data plans by wireless carriers, security and consumer knowledge about the channel.

Low-income consumers in North America make up 21 percent of all mobile phone customers. To attract low-income consumers, mobile banking needs to be cheaper than traditional channels. Additionally, providers must target the low-income segment to find early adopters of the service.

"Adoption of mobile banking is definitely treading upwards because data subscription among mobile phone users is going up," Mr. Monaghan said. "Data subscriptions are the most significant part of carriers' revenue, giving banks more opportunity and reach."