HSBC, first direct, Nationwide, Santander and Metro Bank will offer Zapp mobile payments to their customers, heralding a major financial payment innovation for the UK that will deliver significant value to customers and the economy
London, 15 January 2014: Zapp today announces partnerships with many of the UK’s leading financial services brands to implement its innovative mobile payment service. HSBC, first direct, Nationwide, Santander and Metro Bank will roll out Zapp mobile payments to 18 million customers across the UK. Zapp will enable these financial institutions to offer a new, secure, convenient and simpler way for their customers to pay for goods and services instantly in real-time using their existing bank accounts and their mobile device.
Zapp: Good for Consumers
Zapp will enable consumers to benefit from real-time payments on their mobile phone banking applications, allowing secure payments between consumers and merchants. Zapp will be integrated into the mobile banking applications of these leading financial institutions, providing a seamless real-time payment choice to millions of customers as they shop.
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Zapp payments will put people in control of their finances, with no need for multiple digital wallets, long card numbers, new passwords and usernames to remember. From launch the customers of these leading financial services brands will be able to pay for goods and services using just their existing bank account, a smartphone and a mobile banking app. Customers will be able to see their account balances before they pay and choose different accounts to pay from, thereby staying more in control of their finances. With Zapp, money moves instantly from a customer account to a merchant account through real-time payments.
Zapp: Secure and simple
Zapp transactions are both secure and simple. Zapp payments work through secure digital “tokens”, which mean customers don’t need to reveal any of their financial details (including bank account details) to merchants when they are shopping. And because Zapp is integrated into the mobile banking app it’s only the financial institutions that know account details. Customers don’t have to download a different third party app or register for anything new. All Zapp payments will be covered by similar protections as exist today for debit card payments, ensuring that in the event of goods not being delivered or an issue with the payment the consumer will be covered.
Zapp: Good for the UK economy
By offering Zapp to their customers these leading financial institutions will create the next wave of payment innovation, which will deliver significant benefit to the UK economy. According to the Centre for Economic and Business Research (Cebr) 20 million adults will use their mobiles to pay for goods and services by the end of the decade, with the value of purchases tripling from current levels to £14.2bn in 2018. By offering Zapp, HSBC, first direct, Nationwide, Santander and Metro Bank will help to reduce fraud, lower the cost of cash to the UK economy, put consumers more in control of their finances and help businesses across the UK with their cash-flow by providing an instant settlement payment method.
An alliance of the leading innovators in payments
HSBC, first direct, Nationwide, Santander and Metro Bank join WorldPay, Optimal Payments, Realex and SagePay as payment innovators in UK. The alliance will work together from 2014 to prepare the roll-out of Zapp payments to millions of customers, merchants and businesses. Together this group represents over a third of all UK bank accounts with 60% of UK merchants being able to take advantage of Zapp payments. Zapp will continue to recruit new members to this alliance throughout 2014.
Peter Keenan, Chief Executive of Zapp, said, “I am truly excited to announce our lead financial institution partners: HSBC, first direct, Nationwide, Santander and Metro Bank. Together with our already announced acquirer partnerships, Zapp will go to market with real scale offering simpler, more secure and efficient payments to millions of customers and businesses. I am delighted that these financial institutions and acquirers have chosen to innovate to deliver value to their customers, lead the market and deliver huge benefit to the UK economy.”
David Yates, Chairman of Zapp and CEO of VocaLink said, “Zapp is a major payment innovation for Britain that will bring significant value to consumers, merchants and financial institutions. VocaLink is yet again proving that we are at the cutting edge of payment innovation, delivering significant value for the UK economy.”
Steve Pateman, Executive Director, Head of UK Banking, Santander commented, “Listening to, and responding to customers and their needs is at the heart of what we do at Santander. Our customers want the choice to be able to pay on the go using mobile technology, and the Zapp proposition is second to none with its capabilities. Santander is as delighted to be involved with this initiative as we think our customers will be, when they start using it. Zapp helps us meet the growing demand from our customers to use their mobiles to pay for goods and services swiftly and securely. With the vast majority of UK merchants on board, we expect to see rapid take up of payments powered by Zapp.”
Brendan Cook, Head of Retail Banking & Wealth Management at HSBC, commented: “Our customers’ use of mobile banking is growing rapidly. Introducing Zapp to our mobile banking services will mean customers can benefit from convenient, fast and secure ways to pay using their mobile devices.”
Tony Prestedge, Chief Operating Officer of Nationwide Building Society commented, “Zapp supports our continuing drive to help put customers in control of their finances. Using Zapp, consumers can use their trusted banking app to directly pay for goods and services, and instantly check their balance as part of their process.”
Paul Marriott-Clarke, Commercial Director of Metro Bank commented, “We’re excited to partner with Zapp on this launch. Metro Bank is committed to offering customers the best in service and convenience, through whatever channel they choose to use for their banking. Zapp is an exciting innovation that will provide something extra to those who want to bank through mobile devices, and we’re delighted to be involved.”