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.
VocaLink study sheds light on consumer interests in mobile payments
VocaLink, an international payments firm, has released a new study that aims to provide insight on what consumers want to see in the realm of mobile payments. The study focuses primarily on consumers in the United Kingdom and aims to shed light on their behavior and what they want to see emerge from the mobile commerce field. According to the study, many consumers are eager for banking and mobile payments services, but many of these consumers are already making use of these services in many parts of the country.
Study shows many smartphone owners are participating in mobile commerce
According to the study, approximately 60% of UK consumers own a smartphone and are making use of various mobile payments services. Adoption of mobile commerce is most prolific among the youngest generation of consumers, largely due to the fact that these consumers have grown up steeped in technology. Older consumers are interested in mobile payments as well, but have shown more interest in other convenient services that the mobile space has to offer, such as those found in the realm of banking.
UK mobile payments are mostly money transfers between friends and family
Mobile payments are becoming more common throughout the United Kingdom, but the study shows that many of these payments are not actually made to purchase products from companies. According to the survey, many mobile transactions are made between consumers and their friends or family members. The study shows that consumers are also using their mobile devices to pay for parking access, while approximately 3% of consumers are using their devices to purchase groceries and other products.
Banks could play vital role in growth of mobile commerce
The study suggests that the United Kingdom’s banks and other financial service firms hold a great deal of sway in the realm of mobile commerce. Not only do banks manage the various aspects of commerce throughout the country, they also have the ability to enable mobile payments services. The study shows that 60% of consumers that have participated in mobile commerce claim they would be more inclined to make mobile payments if such services were supported by their chosen banks.
