According to the Centre for Economic and Business Research, 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 partnering with Zapp, banks will help to reduce fraud, lower the cost of cash to the UK economy, put consumers more in control of their finances and help businesses across the UK with their cash-flow by providing an instant settlement payment method.
The arrival of Zapp is in many ways a natural development stemming from the introduction of the Faster Payments Service five years ago and latent consumer demand which has been building since. Zapp is a reaction to today’s digital age, where everybody wants everything instantly: payments are no different. Having a robust, real-time infrastructure greatly simplifies the layering of new services. It offers consumers a much simpler and more secure way of doing things.
First generation mobile payment services tended to rely on users setting up connections to the people that they wanted or needed to move money to – effectively setting up bilateral beneficiary arrangements. This is analogous to a point-to-point communication, while the Faster Payment Service is the equivalent of an IP network, which facilitates universal communication.
In June 2015, Zapp unveiled Pay by Bank app. This will be a universal symbol indicating to consumers that a retailer can receive a mobile payment directly from a bank app. Pay by Bank app is putting real time payments on mobile phones for the benefit of consumers.
Pay by Bank app will become the Zapp’s consumer facing brand from launch. It is the symbol that consumers will see and interact with and the one used by Zapp and its financial services and retail partners in their consumer marketing.