Are mobiles about to replace your wallet in the UK? (Poll)

contactless

The days of purchasing with cash or debit/credit card are soon to be over, as more people opt for using a simple, easy and quick one-tap payment. One-tap payments are used via ‘contactless’ technology.

Contactless technology is mainly used for small transactions, reducing the need to carry unwanted change. The limit for using one-tap payments is GBP20.

Contactless payments do come with there flaws and some people have made complaints regarding money being deducted without their knowledge but in the UK customers have embraced one-tap payments.

Statistics from a Payments Council report show that in the UK, cash payments will fall from 21 billion in 2012 to around 14 billion in 2022, and that mobile payments and internet banking will help drive up consumer use of one-off payments from their accounts from 356 million payments in 2012 to around 1.5 billion in 2022.

Transport for London is set to roll out contactless technology throughout its whole network and they have recently announced that as of July 2014, London buses will be cash free. However, the new payment systems are now widely available on mobile phones. Here we take a look at a number of mobile solutions which will change the way you pay:

Paym:

Paym was recently launched and it enables users to link up their mobile phones numbers to any bank account. This will allow users to transfer money through any banking app without the use of the recipients account number and sort code. The P2P solution is a significant step for the UK payments infrastructure towards mobile integration.

Zapp:

Zapp integrates into a selection of banking apps to enable shoppers to buy direct from a linked bank account. Zapp is currently available to use when shopping online but it will not be in-stores until 2015 as it looks to integrate with major retailers.

Paypal:

The PayPal app enables users to send payments using an email address or mobile phone number; also PayPal users can check their account balance and shop in selected retailers and restaurants.

Pingit:

Barclays launches this payment app in 2012 and it enables registered users to use their mobile number as a means of remittance but without them sharing their bank details. Also, users can buy items from selected retailers by scanning a QR code or using Pingit at the checkout. Pingit has recently taken a step towards enabling business payments with its service as well.

Related reading

EMVcard
europe at night illuminated by electricity
berlin challenger bank
london city hall with people walking in front of it

Leave a comment


Comments RSS TrackBack 2 comments