Tag: zapp mobile payments

This startup has launched in the United Kingdom and is already targeting 20 million users in the next 4 years.

Zapp, a mobile payments company in the United Kingdom, has vowed that it will reach 20 million users by the close of the year 2017, which would bring them to a size in which they would be considered a rival to more traditional giants in the transaction industry, such as Visa or MasterCard, by the time the decade is done.

This service was implemented earlier this year by VocaLink with the goal of boosting real time transactions.

The purpose was to bring the Zapp mobile payments, in real time, to the in-store experience, as well as online and through apps. This would help to boost the smartphone based experience both over m-commerce as well as in brick and mortar shops in the United Kingdom. It was accomplished through the integration of its system into banking applications and by using the Faster Payments rail taps.

Zapp is currently on the cusp of solidifying mobile payments deals with as many as three large banks in the United Kingdom.

Those institutions would, in turn, invite their own customers to choose to take part in the service once it is officially rolled out in the second half of 2014.

The customers who opt into this mobile payments service would be able to pay for their products and services by using their banking app, bypassing the need to use the traditional card networks. This system, according to Zapp, is even more secure and convenient than other options that are currently available to consumers as they don’t need to provide the retailer or merchant with any of their card data. Instead, there is a token that lasts for only a few moments and has no intrinsic value, but that provides the authorization for the payment request. This is passed from the retailer to Zapp, and then onward to the bank of the customer.

Especially in the case of in-store purchases, Zapp explained that the lengthy log-in requirements that are currently used by some banks for their apps access could make the process unappealing for consumers. However, Zapp allows the same bank to be used while overcoming that issue through “adaptive authentication”, which reduces the barriers for smaller sized mobile payments.

Mobile commerce competition continues to heat up

It is not uncommon for companies to compete with one another, especially in the field of mobile commerce. It is relatively uncommon, however, for start-ups to target large corporations as their major competition. Mobile commerce firm Zapp, which is based in the United Kingdom, has taken aim at both Visa and MasterCard, seeking to dethrone these two companies in the mobile commerce arena. Zapp plans to boast of more than 20 million users by the end of 2017, an ambitious goal that if achieved would make the firm one of the most successful entities in the mobile commerce field.

Zapp aims for 20 million users by 2017

Zapp was launched earlier this year and aims to make mobile payments in stores, online, and through applications more convenient and accessible to consumers in the United Kingdom. The firm intends to incorporate its mobile payments system into banking application from some of the country’s largest financial firms. Zapp is reportedly close to closing deals with three prominent banks in the UK, which will give the company significant momentum to launch its mobile commerce services through these institutions at some point next year.

Banks could incorporate Zapp services

Zapp is designed to bypass card networks. Using Zapp, consumers will have a direct connection to their bank accounts, which can be used to make mobile payments for goods and services. Zapp claims that this will make mobile commerce more convenient for consumers as they will never have to deal with physical cards or other forms of physical currency.

Retailers show interest in Zapp

The mobile commerce firm is not only focused on banks, of course, as it also expects several prominent retailers in the UK to make use of its services. Zapp is proving attractive to retailers through the promise of higher checkout completions and the low fees associated with the services it offers. Whether Zapp will be able to compete with Visa and MasterCard among retailers and banks has yet to be seen, as both Visa and MasterCard have a significant head start over the mobile commerce start-up.