The service is expected to launch near the beginning of 2014 through eight participating financial institutions.
The Payments Council has just released their latest news for smartphone users in the United Kingdom, which revealed that in the early part of 2014, they will have mobile payments services available that will allow them to send money or complete transactions via text message.
It is hoped that this will be able to rev up the smartphone transaction sector within that country.
According to the BBC, the entire process will begin as the eight banks that are involved in this mobile payments venture ask their clients whether or not they would be willing to opt into the program in 2014.
The goal is to use text messaging to make mobile payments more accessible and convenient to users.
The participating banks feel that using text message mobile payments will provide a simpler process than having to transfer money in the traditional way, as an account number will not need to be provided. Instead, a phone number will be used, which is much easier for the user to remember and is considered to be more manageable.
Though this is will be the first time that a service of this nature is launched in the United Kingdom, the technology is not brand new. M-Pesa is already offering text based mobile payments in a number of different African countries. This is because it is available in the majority of cell phone devices and it allows funds to be transferred quite quickly.
The Faster Payments service will be managing the mobile payments of this nature in the U.K. In 2012, that company processed 800 million banking transactions, which suggests that they will be capable of handling the necessary volume.
It is expected that the users who will find the text mobile payments to be the most appealing will be those who have feature phones as opposed to smartphones, and who are therefore not able to load wallet and mcommerce apps. Also predicted to enjoy this technology will be individuals who want to use their devices but without having to manage their account numbers in order to do so.
PayPal announces retail expansion of its mobile wallet service
PayPal has announced that it is expanding its mobile wallet service to five new U.S. retail partners. This will increase the number of stores that accept mobile payments using the PayPal mobile wallet to 18,000 nationwide. PayPal has shown an intense interest in mobile commerce over the past year, hoping to engage a new generation of consumers that prefer to make purchases using their mobile device rather than traditional forms of payment. PayPal is one of the few companies that is ideally suited for the emerging mobile commerce arena because of its longstanding focus on digital commerce.
Company signs new deals with several retailers
PayPal has signed new agreements with RadioShack, Dollar General, Famous Footwear, Mapco Express, and Spartan Stores, as well as two other retailers that have not yet been identified. These stores will feature support for PayPal’s mobile commerce processing technology, which will allow consumers to purchase products using their smart phone with funds that are associated with their PayPal account.
Mobile wallet from PayPal avoids NFC technology
PayPal launched its mobile wallet in early 2012 to a limited market. The company has been testing the mobile commerce waters ever since, making modest advances in its hold on the market and showing caution in terms of consumer security. Notably, PayPal’s mobile wallet does not support NFC technology, which has become a common foundation for the mobile commerce sector. This is because PayPal was unconvinced of the security features that were associated with the technology, opting instead to institute its own technology and software to ensure the protection of its customers.
Success of mobile wallet may put PayPal on par with Google and Isis
The company has been championing its alternative to NFC technology for several months, suggesting that it provides consumers with a more secure way to participate in mobile commerce. By expanding its retail partnerships, PayPal is looking to make its wallet more available to a wider audience. If the company’s service continues to provide successful, PayPal may soon emerge as a major competitor with others in the mobile commerce sector, such as Google and Isis.
