Barclaycard is partnering with VocaLink to enable its merchants to accept mobile payments through the Pay by Bank app. The app, created by VocaLink’s payment innovation team Zapp, will enable shoppers to pay for goods and services on a mobile device, without the need to enter credit or debit card details, according to Paybefore sister publication Banking Technology.
Rajiv Garodia, managing director of Pay by Bank app, says Barclaycard brings “significant scale to our ecosystem” and it has a “huge portfolio of retailers.”
Barclaycard says with more than half of online transactions now made through mobile devices, 30 percent of these shoppers abandon their carts before completing the transaction. This growing trend of cart abandonment is an industrywide problem for online retailers, according to Barclaycard.
By partnering with VocaLink, Barclaycard will work with its merchants to provide an e-commerce gateway to authorize and process payments made through the app. This means that when a transaction is made, the payment is taken from the shopper’s bank account and deposited into the retailer’s account in “almost real time.”
Whether users are registering for the first time or paying with a mobile, the app uses the bank’s own security methods to verify the user. In addition to the bank security, Pay by Bank app customers can see their account balances before they pay.
In December, Barclaycard, along with others, joined forces with the online and mobile payment platform Alipay. This deal will provide Alipay customers with digital ways to pay in the U.K. and Europe. Later, Alipay customers will be able to pay using Barclaycard’s POS solution.
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- Solving the Shopping Cart Abandonment Puzzle