VocaLink, the UK’s national payments provider – the company behind FasterPayments between bank accounts – is to launch a new company to bring a new mobile payment system to market. ‘Zapp’ gives consumers direct access to the money in their existing bank accounts through their mobile phone and real-time payments.
Research has shown that there are £50 billion of abandoned check outs in the UK and the payment landscape is becoming increasingly confusing, ‘Zapp’ will allow people to make real-time payments from their mobile, unlocking the money in their current account in a much simpler and more secure way.
Payments will be processed by linking a mobile phone number to a bank account. This means that payments can be made via smartphone with no need to use a card, keeping account details securely hidden and speeding up the payment process. Consumers get greater control because they can always check their balance before deciding to pay.
VocaLink is collaborating closely with a significant group of stakeholders including financial institutions, merchants, merchant acquirers, billers and telcos, to set up, build and deliver a new framework for ‘Zapp’ mobile payments. This proposition will put the UK at the forefront of payments innovation globally.
David Yates, CEO of VocaLink explains: “Speeding up the UK economy as we get back to growth is now crucial to our nation. We are proud to be collaborating with financial institutions and retailers to spearhead the creation of a new payment system, which gives all of us easy access to the money in our bank accounts by using cutting-edge, secure technology through the mobile phone.
The UK financial system has a rich history of speeding up the movement of money and ‘Zapp’ is the next evolution. VocaLink has always been committed to driving innovation in payments through initiatives including the launch of the Faster Payments Service in the UK and building the central mobile proxy database on behalf of the Payments Council.”
Zapp will be launched to the financial institution and merchant communities by the end of 2013, with consumers able to use the service early next year.
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