Zapp's Pay by Bank app is aiming to capitalise on the revolution in mobile payments. It aims to offer a simple-to-use solution that benefits consumers and retailers alike.
It will allow shoppers to make payments from their own banking apps in store, online or via mobile browsers and apps in just a few clicks.
The launch comes as we increasingly turn to our mobile phones to make purchases. By 2018, the value of mobile phone purchases of goods and services is set to triple from £4.8billion in 2013 to £14.2billion1.
Peter Keenan, Chief Executive of Zapp, describes Pay by Bank a “shining example” of the financial and retail communities working together to benefit UK consumers2.
Zapp is part of Vocalink , which manages the UK's retail payments infrastructure, including Faster Payments3. Vocalink is owned by a consortium of 18 UK banks and building societies, including Barclays, all of whom support Pay by Bank.
Barclays sign up to the Pay by Bank app has been a key part of its progress. Because the app will be available via Pingit, the app has become the UK’s first total market mobile payment solution, available to all consumers regardless of who they bank with or which smartphone brand they use.
Barclays Pingit allows customers with a UK bank account to send or receive payments using a mobile phone number. It’s been downloaded more than five million times and is accessed millions of times a week. The total value of payments and transfers made through Pingit runs to more than £4 billion4.
How it works
To use the app, customers need a UK bank or building society account and a smartphone with a UK-registered number. Pay by Bank can be used wherever the paymark logo is displayed. When customers want to buy something, they’re sent a special code when they approach the check-out. They can then confirm the code, and transfer the correct payment amount with a simple tap.
With key UK retailers signed up, the app is already open to a potential customer base of more than 35 million . That makes it the UK’s largest-ever largest joint retailer support for a new payment method5.
Benefits to customers:
- Security: customers don’t need to reveal their financial details to retailers, as payments work through secure digital tokens6.
- Quicker and easier: no need to enter lengthy payment details or create and remember passwords.
- Information: customers can see their bank balance before and after the sale (if allowed by their banking app)7.
- Consumer protection: all Zapp payments will be covered by the same type of safeguards that exist for debit card payments7.
Benefits to merchants:
- Improved cashflow: Pay by Bank lets money move quickly, which is particularly beneficial to SMEs8.
- Quicker and easier: the payment experience is less time-consuming, for both retailer and customer, which could attract more sales and improve customer loyalty8.
Why sign up?
According to Zapp’s own research, British consumers are so determined to access mobile payments that:
- 21 million said they would switch banks to do so9
- 47% said they would actively choose to shop online or in-store with a retailer accepting mobile payments9
- 59% would use their phones to pay if a simple system existed that didn’t need extra set-up. That figure reaches 71 per cent among those aged 35-449.
Those figures suggest that shoppers are ready to embrace new methods of paying for goods and services. It’s therefore important to be aware of those methods, and offer them if they suit your business.