Shifting from cash, credit and charge cards to mobile payments could have saved retailers around £463 Mn in lower transaction costs in 2013, according to a report from the Centre for Economics and Business Research (Cebr). Yesterday (10th April, 2014) Zapp announced its partnership with FEXCO – Irish multinational finance and business solutions provider – to enable easier mobile payments for customers at the POS terminals within stores.
“We’re delighted to welcome FEXCO into the Zapp payment ecosystem. We’re committed to building the most open and inclusive alliance of any mobile payment initiative and this is another example of how the industry is getting behind Zapp, working together to make mobile payments a reality for millions of consumers. We know that for retailers, it’s important that any new payment service is technology agnostic and easily integrates with their existing in-store hardware,” said Zapp CEO, Peter Keenan. “Today’s announcement – and others we will make in the coming months -helps makes this possible,” he added.
- With this partnership, acquirers will be able to effortlessly support Zapp transactions through FEXCO’s FLASHiZ mobile payment platform on existing POS hardware.
- This also makes it easier for retailers to integrate mobile payments using both QR codes and NFC.
- Hence their users can utilize their mobiles to pay in shops, online, as well as pay paper invoices.
Cebr’s report also predicted that:
- 20 Mn adults will use their mobiles to pay for goods and services by the end of the decade.
- The value of purchases will from current levels to £14.2 Bn in 2018.
- By 2020, mobile payments will represent 1.4% of total consumer spending.
“Today’s announcement is an important step towards our goal of supporting our acquiring partners in accepting mobile payments. Through our partnership with Zapp, acquirers will be able to seamlessly support Zapp transactions on existing Point of Sale hardware. This partnership highlights how acquirers can adopt this technology and best position their business to profit from the rapidly evolving world of mobile payments,” said John McCarthy, FEXCO’s Head of Mobile Payments. “At FEXCO, we believe that mobile payments will play a key role in the future of retail and we are looking forward to working with Zapp to roll out new merchant locations on multiple integrated and standalone devices in 2014.”
About Zapp Payments:
Zapp is a mobile payments startup formed by payments infrastructure operator VocaLink. Its major partners are: HSBC, first direct, Nationwide, Metro Bank, Santander, WorldPay, Elavon, Sage Pay, Realex Payments and Optimal Payments. This group’s customer base combined, includes 60% of UK merchants. In 2012 VocaLink processed over 10 billion UK payments with a value of over £4.5 Trillion.
This video gives you an overview of their platform:
- When users reach the checkout, a code will be sent to their mobile.
- They can then confirm or reject the transaction with the swipe of a finger.
- Unlike chip and pin cards, Zapp doesn’t hand over sensitive information, such as card numbers and expiry dates, that can be used by criminals.
- Zapp uses secure digital tokens that mean consumers don’t need to reveal any of their financial details to merchants during a transaction.
- It is also fully integrated into financial institutions’ mobile banking apps, enabling consumers to select from multiple accounts when they make a purchase and see their account balances.