Zapp and FEXCO partner to bring mobile payments to PoS for consumers
Mobile payment provider Zapp has joined forces with FEXCO so that acquirers can seamlessly support Zapp mobile transactions via FEXCO's FLASHiZ mobile payment platform to existing PoS hardware. This makes it easier for retailers to integrate mobile payments using both QR codes and NFC so their customers can use their mobiles to pay in shops, online, and pay paper invoices.
The news follows the publication of a report from the Centre for Economics and Business Research (Cebr) which concluded that mobile payments will bring retailers reduced transaction costs, increased sales and an improved consumer shopping experience. The report found that shifting from cash, credit and charge cards to mobile payments could have saved retailers £463 million in lower transaction costs in 2013.
FEXCO’s Head of Mobile Payments, John McCarthy, explains: “This partnership highlights how acquirers can adopt this technology and best position their business to profit from the rapidly evolving world of mobile payments. At FEXCO, we believe that mobile payments will play a key role in the future of retail and we are looking forward to working with Zapp to roll out new merchant locations on multiple integrated and standalone devices in 2014.”
Research by the Cebr predicted that 20 million adults will use their mobiles to pay for goods and services by the end of the decade, with the value of purchases tripling from current levels to £14.2bn in 2018. By 2020, mobile payments will represent 1.4% of total consumer spending.
Zapp announced in January 2014 that it will be open to all financial institutions, merchants, acquirers and consumers from autumn 2014 and its lead partners are: HSBC, first direct, Nationwide, Metro Bank, Santander, WorldPay, Elavon, Sage Pay, Realex Payments and Optimal Payments. The alliance is working together to prepare the roll-out of Zapp payments to millions of customers, merchants and businesses.
Together this group represents over a third of all UK bank accounts with more than 60% of UK merchants being able to take advantage of Zapp payments. Zapp will continue to recruit new members to this alliance throughout 2014.