Zapp looking to secure banks' buy-in

24 March 2014

Zapp has revealed it is confident that a growing number of banks in the UK will sign up for its services and provide them to customers.

The payments system provider said it is in advanced negotiations with a number of banks that are yet to sign up to its services, with the likes of RBS, Lloyds and Barclays onboard thought to be targets for the fintech company.

The system allows customers to pay for goods directly from their bank accounts using their mobile phone. HSBC, Santander, Nationwide and Metro Bank have already signed up to make use of Zapp payment technology.

However, with Zapp's target of 20 million users by 2017 still a long way off, the tech startup is keen to extend the network of banks signed up to provide the service to account holders.

The firm's chief executive Peter Keenan said: "We are in varying degrees of discussions with the remaining banks in the UK and are confident of making more announcements in the next few months."

Mr Keenan went on to note that he is confident the mobile payment technology will be used by UK consumers, citing the fact it will be closely aligned to recognisable high-street banks as a major plus point for early adoption rates.

Despite the positivity and openness around the banking companies signing up to offer the service to customers, Zapp has remained tight-lipped about the retailer names it has secured.

It is thought that major companies within the utility and loyalty industries are on the company's radar or have signed up already, but Zapp is keeping its cards close to its chest at the moment.

Zapp's announcement and the launch of the Paym technology by The Payments Council, which is expected to take place in the coming months, means that mobile payment technology is booming at the moment.

A study conducted by The Payments Council revealed people are keen to make use of mobile payments. Its The Mobile Way To Pay report predicted that a significant number of payments will take place between friends and family initially, with 63 per cent of potential users surveyed saying they will utilise the technology to pay relatives and friends back for small items, such as cinema tickets or dinner.

By Gary Cooper

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development