Heightened consumer demand spurs development of mobile P2P payments in the UK
VocaLink will play an important part in UK’s ambitious plans to start the roll out of a national mobile P2P payment initiative during 2013. January 17, 2013 | Carol WheatcroftAs a result of an agreement reached by eight UK banks (Barclays, Danske Bank, Lloyds Banking Group, HSBC, Metro Bank, Royal Bank of Scotland and Santander) representing 90% of UK current accounts, through the auspices of the UK Payment Council, the banks are planning to use mobile phone numbers as a proxy for bank account details to enable widespread person to person (P2P) payments to take place. The service is expected to be fully operational by spring 2014 and is thought to be the first time a group of banks will run a mobile P2P payment service with near real-time settlement. A central database containing the mobile numbers is being set up to overcome a main barrier to extensive P2P payment adoption – the problem of “reach”. Most mobile payment initiatives across the globe tend to consist of closed-loop systems whereby payments can only be made to those who are already signed up to a payment network. The central database is expected to create the critical mass that will seed use of mobile P2P payments by UK consumers. Payments specialist VocaLink has built a new database to operate the mobile payment initiative, together with technology that it had previously developed to run and manage the UK’s Faster Payments, a national payments service introduced in 2008 that ensures bank customers received payments in near real-time (it previously took 3 days). VocaLink will also manage the operation of the database, including security of the data held within the database. However, banks will be responsible for updating customers’ mobile numbers and customer security; customers can expect to engage in similar processes to those designed for registration and maintenance of online banking, except for mobile. VocaLink won an open tender to build and maintain the database, with the eight banks to populate it with their customers’ mobile numbers throughout 2013. Once fully operational, bank customers will be able to download an application from... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Channels, Mobile Banking, Retail Banking, Retail Payments, Technology & OperationsChannels,Mobile banking,retail,Retail Payments,technology, Channels,Mobile Banking,Retail Banking,Retail Payments,Technology & Operations, Keywords:VocaLink, P2P Payment, BACS, LINKS, Faster Payments, UK Payment Council, First Data, Accenture, Reserve Bank Of Australia VocaLink, P2P Payment, BACS, LINKS, Faster Payments, UK Payment Council, First Data, Accenture, Reserve Bank of Australia
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