Banking app given go-ahead - Banking - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Banking app given go-ahead

Banking app given go-ahead

Category: Banking

Updated: 16/01/2014
First Published: 16/01/2014

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

A smartphone app that allows shoppers to pay for goods via a direct link with their current account has been given the go-ahead by some of the UK's largest banks, signalling that the banking arena is gearing up for increased reliance on mobile payment systems.

The app, known as Zapp, is due to be launched later this year and will be available to some 18 million customers who hold accounts with Nationwide, HSBC, first direct, Santander and Metro Bank.

The app will initially only be suitable for online purchases, however Vocalink, the app's developers and group that runs the payment infrastructure of the UK, is working on making the app enabled for in-store purchases by late 2015.

In essence, the app will reduce the need for credit and debit cards on the high street as well as online, and is touted as being a much more secure way to pay as there's no need to share credit card details with the retailer.

Zapp isn't the only mobile payment system on the market – similar "digital wallets" are offered by providers including Visa and PayPal, while Barclays, who isn't signed up with Zapp, has got its own mobile payments service called Pingit – but for many it offers a great opportunity.

The cooperative nature of the app means standalone products could quickly lose their competitive edge, and many banks see it as a great way to become a credible current account provider and rebuild customer relationships – with account switching being easier than ever before banks need to do more to keep their customers, and offering this kind of service could add to their appeal.

What Next?

Check out our pick of the best bank accounts

Switch your current account in 7 days

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Debit card spending still leads the way

Many of us turn to plastic at the tills these days, particularly as contactless technology makes it easier than ever before. It’s little wonder that card spending continues to ramp up – and it’s debit card spending that’s leading the way.

Current account switching to be made even easier

It was announced today that the Current Account Switch Service (CASS) will be undergoing improvements that are to be implemented in a year’s time. This should help give more customers and businesses the confidence to switch to a better bank account.

A quarter of all card payments now contactless

The rise of contactless payments shows no signs of stopping, with new milestones being hit on a seemingly monthly basis. Well, another one has arrived, with new data showing that a quarter of all card payments are now made via contactless means.