Tag: lloyds bank

In the U.K., a rising number of people feel that they will be using their smartphones regularly in stores.

Though mobile payments have been slow to take off, they are rapidly becoming more popular and now a new study based on a survey from Lloyds Bank has shown that many consumers feel that they will be regularly using this tech within five years from now.

In fact, one quarter of the study participants felt that by the end of 5 years, mobile phones would replace cash.

One in four participants in the U.K. study felt that between mobile payments and contactless cards, they would no longer need to carry cash. Moreover, recent statistics from Barclaycard have revealed that contactless spending in the United Kingdom is three times greater than it had been a year ago. In the Lloyds survey, conducted by Ipsos Mori, with the participation of more than 2,000 people, 43 percent of consumers agreed that technology is the way that payments are going in the future.

The survey also showed that 1 in 3 people feel that mobile payments will be used daily in five years’ time.

Over the summer, Apple Pay made its way into the U.K., drawing a considerable spotlight to the concept of mobile wallets. That said, while there are quite a few people who believe that mobile devices will become a typical payment method within the next five years, there also remains a much larger number that has stated that this technology will never become their primary choice for completing payment transactions.

According to the stats from the survey, it looks as though it is younger consumers who are more enthusiastic about the use of their mobile devices for this purpose than their counterparts who are 45 years of age or older.

When survey participants were asked about why they were not yet using mobile payments, 44 percent stated that they were not satisfied with the security or safety of the transactions. Another 18 percent said that their mobile devices were not compatible with the necessary technology, and 17 percent said that they didn’t know anything about this form of transaction.

It may soon be possible for customers of Lloyds Bank to use their contactless card to authorize smartphone transactions.

Customers of Lloyds Bank who have both a contactless debit card and who have an NFC technology enabled device may soon be able to combine the two in order to enhance the mobile security of the banking app so that they can authenticate their identity.

The authentication tech has been nicknamed “tap to bank” and the pilot program involves 125 people.

The participants in the mobile security experiment will replace the current authentication method that uses call to mobile, with a quick tap of the contactless debit card against the smartphone. According to Lloyds Bank, this type of authentication feature could one day be broadened to complete other types of task, as well, such as for the verification of new payments.

It is clear that this new mobile security technology is only at the very beginning of its use by the bank.

According to Marc Lien, the Lloyds Bank director of innovation and digital development, “With the widespread take up of contactless cards and most new smartphones now having NFC technology, this tap to bank trial is developing enhancements to banking processes that many people could benefit from.”

The bank is also currently working to replace the automated authorization phone calls that are currently used for the confirmation of certain transactions completed over desktop, as well. In that case, the user can verify requests by logging into the mobile banking app.

That process will be available to individuals who are setting up repeat orders, who are establishing new beneficiaries, who will be making an international payment, or who will be resetting their passwords by way of Internet Banking over a laptop or desktop computer.

Lloyds has explained that these new methods of authentication by way of mobile security technology makes the process considerably faster and more convenient than the automated phone call. Its current estimates are that the entire process could now be done in under 20 seconds, when compared to the lengthier method using the automated calls. Mobile banking is becoming increasingly important among the bank’s customers and is more than likely a driving factor behind this experiment.