It seems 2014 could finally be the year that people start paying for purchases using their mobile phone, as several of the high street banks have announced their support for ePOS (electronic point of sale) app Zapp, due to launch this autumn. Zapp is a smartphone app that enables a range of bankingRead More
It seems 2014 could finally be the year that people start paying for purchases using their mobile phone, as several of the high street banks have announced their support for ePOS (electronic point of sale) app Zapp, due to launch this autumn.
Zapp is a smartphone app that enables a range of banking and payment services designed to make it not just easier to buy goods in shops, but also to manage your money proactively at the point of purchase.
Not sure of your bank balance? Zapp will let you check your available funds before completing the transaction, giving you the chance to back out if you can’t afford something.
Got the money, but in a different account? Unlike a debit or credit card that is tied to a single balance, Zapp will let you select any linked account and pay with funds from there.
And by using ‘tokens’ to process transactions, Zapp promises to be secure and near-instant, so you shouldn’t have to wait 2-3 days before the funds are taken from your account.
Metro Bank, Santander, Nationwide, HSBC and its online equivalent first direct have all announced their support for Zapp – and significantly, you do not have to install it as a third-party application.
Instead, it will be integrated into those financial services providers’ own existing smartphone apps, again meaning you do not make your account details known to a third-party developer, but only to your own banking provider.
Peter Keenan, chief executive of Zapp, said: “Zapp will go to market with real scale offering simpler, more secure and efficient payments to millions of customers and businesses.
“I am delighted that these financial institutions and acquirers have chosen to innovate to deliver value to their customers, lead the market and deliver huge benefit to the UK economy.”
A potential 18 million accountholders will be reached by the rollout, assuming they have the necessary smartphone handsets, and forecasts by the Centre for Economic and Business Research predict that 20 million people will be paying for goods and services using mobile devices by the year 2020.