This article includes tips, suggestions, and general information. We recommend that you always do your own research and consider getting independent tax, financial, and legal advice before making any important decision.
Key takeaways:
According to the American Bankers Association (ABA), 77% of US customers are highly satisfied with digital banking, preferring mobile apps and online platforms to traditional channels.1
There are important differences between mobile banking vs. online banking, especially in how you access your account and the features they provide. However, both forms of digital banking help ensure that users can make deposits and transactions, check their financial data, pay bills, and more from almost anywhere.
Learn more about these differences, integrating mobile and online banking options with peer-to-peer (P2P) apps, security tips, and more in our guide.
Table of contents
Online banking and mobile banking are similar, but there are some key distinctions. The major difference between online banking vs. mobile app banking is how each is accessed:
Both types of banking allow you to deposit money. Unlike mobile banking, there are also online-only bank accounts you can open, which can be created and accessed digitally. Below, we break down more of the differences between mobile banking and online banking:
Mobile banking | Online banking | |
|---|---|---|
Access method | Mobile app | Bank website |
Features |
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Security |
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Capabilities | Convenient, on-the-go tasks | Broader functionality, including more detailed account management |
Notifications | Push notifications and real-time alerts | Email or SMS alerts |
User interface | Touch-friendly design optimized for small screens | Desktop-oriented layouts with more detailed views |
Limitations | Smaller screen visibility, lack of detailed statement downloads, and loan applications | Less portability and a lack of everyday, on-the-go banking |
Mobile banking is a banking service that enables customers to access accounts and conduct transactions from a mobile device. The important qualities of mobile banking are:
Often, mobile banking technology and security measures, like biometric authentication and encryption, help ensure mobile banking safety for customers.
Mobile banking puts bank account access directly into the palm of your hand. With just a few taps, many of the benefits of mobile banking are clear. However, even though mobile banking can make everyday finances faster and more convenient, it also has its challenges.
Benefits | Limitaitons |
|---|---|
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Online banking is a banking alternative where customers use a desktop device to access funds and make transactions. The important qualities of online banking are:
Similar to mobile banking, online banking can simplify access to financial data, even with potential limitations. From in-depth account management to online banking safety, we cover the benefits and challenges of online banking below:
Benefits | Limitations |
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P2P payment apps can be a natural extension of online and mobile banking, helping simplify money management. Often, these apps integrate directly with bank accounts, allowing people to send, request, and accept funds with just a few taps.
For mobile banking, P2P apps:
With online banking, P2P apps:
Together, P2P apps, online banking, and mobile banking can help you pay your own way and create a smooth, flexible experience that bridges the gap between traditional and P2P transactions.
Whether you want to make secure online payments or check the balance of your bank account, we recommend following these security tips to help ensure a safe and secure login experience.
For mobile banking security:
For online banking security:
For both:
Mobile banking and online banking offer unique advantages, but both can become more powerful when you use a digital wallet and pair them with flexible payment tools. With a digital wallet like PayPal, it’s easy to stay on top of everyday transactions, send or receive money, and keep accounts secure (all from one trusted platform).
Start managing your money digitally by adding your preferred cards and accounts to the PayPal app.