After a number of push backs, VocaLink announced today a partnership with Barclays and Lloyds Banking Group to launch its "Pay by Bank" app. Set to first be made available to Barclays customers this autumn, and Lloyds, Halifax and Bank of Scotland 2017
Is the Barclays launch more definite than this time last year, when an autumn launch was also in the offing?
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"Yes, in a word," answered Gareth Thomas, spokesperson for Zapp.
"Things have fundamentally changed… they are at the stage of advertising," Thomas added.
Lloyds, Halifax and Bank of Scotland are in the "integrating and testing stage and there is a strong hint they will launch next year", said Thomas.
Several major high street retailers have confirmed their support for the service as an easy and safe way for consumers to pay for good and services instantly.
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By GlobalDataThe app enables consumers to make real-time payments on their phones and tablets whenever they see the "Pay by Bank app" paymark.
The payments innovation team behind VocaLink created this app to allow money to move instantly from a customer account to a merchant account through real-time payments.
Zapp believes the app will be considered more convenient and trustworthy by customers as it is processed via their banking app, with which they are already familiar. The app also provides allows users to view their account balances before they pay.
Zapp uses the customer bank’s own security methods to verify the user whilst the consumer’s financial details are never revealed to the merchant due to encryption via secure digital tokens.
POS terminal payment in store will be the next priority for Zapp, likely to follow in 2017. As Thomas explained, "there will always be a five or six month lag behind the e-commerce launch.
David Yates, CEO of VocaLink, commented: "We’re delighted to announce our partnership with four of the UK’s biggest financial institutions, alongside the growing number of retailers who are supporting Pay by Bank app".
Darren Foulds, Managing Director for Pingit at Barclays, added: "With the introduction of the Pay by Bank app features, mobile payments to merchants are going to be even simpler and more secure for customers."
Zapp is also in talks with HSBC, First Direct, Metro, Santander and Nationwide to launch but are unable to give launch dates at this time.
