Several major banks have made promising steps toward the future of mobile payments by supporting Zapp, a mobile payment company. The new payment method is said to replace the need for multiple digital wallets, long card numbers, new passwords and usernames to remember.

HSBC, First direct, Nationwide, Santander and Metro Bank will offer Zapp mobile payments to their customers, which is said to add value to both the consumers and the economy.

Peter Keenan, Chief Executive of Zapp, said, “I am truly excited to announce our lead financial institution partners: HSBC, first direct, Nationwide, Santander and Metro Bank. Together with our already announced acquirer partnerships, 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.”

The partnerships will see a roll out of Zapp mobile payments to 18 million customers across the UK to allow secure payments between consumers and merchants.

David Yates, Chairman of Zapp and CEO of VocaLink a technology partner said, “Zapp is a major payment innovation for Britain that will bring significant value to consumers, merchants and financial institutions. VocaLink is yet again proving that we are at the cutting edge of payment innovation, delivering significant value for the UK economy.”

Customers are promised the benefits of a new, secure, convenient and simpler way to pay for goods and services instantly in real time using their existing bank accounts and their mobile device. Zapp will be integrated into the mobile banking apps of these leading financial institutions acting as another payment method for customers as they shop. Customers will be able to check their balance/s before payment and choose which account to pay from; the payment will then be sent instantly.

Zapp reports that the payments work through secure digital “tokens” which mean customers don’t need to reveal any of their financial details (including bank account details) to merchants when they are shopping.  Only the banks will have such details. Payments will also be protected so that in the event of goods not being delivered or if there is an issue with the payment, the consumer will be covered.

In turn the UK economy can look forward to a new wave of payment innovation that will see today’s current value of purchases tripling to £14.2bn in 2018, according to the Centre for Economic and Business Research(Cebr).

Other benefits for the economy include: reduced fraud, lowered cost of cash to the UK economy, and putting people and businesses more in control of their cash flow.

The banks will work together from 2014 to prepare the rollout; together they represent over a third of all UK bank accounts with 60% of UK merchants being able to take advantage of Zapp payments.

Steve Pateman, Executive Director, Head of UK Banking, Santander commented, “Listening to, and responding to customers and their needs is at the heart of what we do at Santander. Our customers want the choice to be able to pay on the go using mobile technology, and the Zapp proposition is second to none with its capabilities. Santander is as delighted to be involved with this initiative as we think our customers will be, when they start using it. Zapp helps us meet the growing demand from our customers to use their mobiles to pay for goods and services swiftly and securely. With the vast majority of UK merchants on board, we expect to see rapid take up of payments powered by Zapp.”

Brendan Cook, Head of Retail Banking & Wealth Management at HSBC, commented: “Our customers’ use of mobile banking is growing rapidly. Introducing Zapp to our mobile banking services will mean customers can benefit from convenient, fast and secure ways to pay using their mobile devices.”

Tony Prestedge, Chief Operating Officer of Nationwide Building Society commented, “Zapp supports our continuing drive to help put customers in control of their finances. Using Zapp, consumers can use their trusted banking app to directly pay for goods and services, and instantly check their balance as part of their process.”

Paul Marriott-Clarke, Commercial Director of Metro Bank commented, “We’re excited to partner with Zapp on this launch. Metro Bank is committed to offering customers the best in service and convenience, through whatever channel they choose to use for their banking. Zapp is an exciting innovation that will provide something extra to those who want to bank through mobile devices, and we’re delighted to be involved.”

Source: www.zapp.co.uk