Home » Pay News » U.K. Mobile Payments System Set to Launch Next Year (Jan. 17, 2013)
Print view|Purchase Reprint
01.17.13

U.K. Mobile Payments System Set to Launch Next Year (Jan. 17, 2013)

Jan. 17, 2012

An industry-wide mobile payments service set to launch next year in the U.K. will enable users to send mobile payments using just their phone numbers and a password. Eight of the nation’s major banks, including Barclays, HSBC and RBS, have signed on to the program, which is being guided by the U.K. Payments Council and will rely on a customer database built by VocaLink.

First announced in early 2012, the program is expected to launch in spring 2014. Prior to that time, banks will enable their customers to register for the service by linking their phone numbers to their bank accounts via the Web. Once enrolled, customers can use their phone numbers and a passcode to make person-to-person or person-to-business mobile payments, without needing to provide an account number or any other information.

Todd Ablowitz, president of mobile payments consultancy Double Diamond Group, says the service is likely to be a hit—provided any cost to consumers is appropriate to the value provided. “It’s important to note that these types of services [aren’t as highly valued] in developed markets, where the banking system is highly penetrated because it becomes only a way for casual transactions rather than consumer-to-business transactions, which are handled very well by payment cards,” he tells Paybefore.

A similar system could be developed in the U.S., but the sheer range of the American banking sector could present a hurdle, Ablowitz adds. “The U.S. banking system is quite fragmented, with well over 8,000 financial institutions, which causes a large barrier to getting a product like this off the ground,” he says.

 

 

This entry was posted on Thursday, January 17th, 2013 at 8:09 am and is filed under Pay News.

Comment

Your email address will not be published. Required fields are marked *

By clicking below, I acknowledge that my contact information will be shared with the companies whose files I am accessing on Pay Connect so they can contact me directly about their products or services. Please refer to their privacy policies for details on how your information will be used. Paybefore uses cookies to store this data so you will not need to re-enter it.

To sign up for Paybefore e-newsletters and announcements, click here.  http://paybefore.com/enewsletter-subscriptions/

  • This field is for validation purposes and should be left unchanged.
X