UK start-up CloudZync launches mobile wallet

not yet on iTunes?

Sounds pretty cool. I'm guessing the wallet is funds held by CloudZync, so there needs to be a top-up of some form (debit/credit card more than likely?). One big question though regarding user experience - why show your picture ID? Not really displacing cash with that. If I generate a QR with an app that is secured through a PIN surely that is secure enough? I mean, steal my PIN for my card and you can just go to an ATM.......

"no additional hardware is required" is a tall claim when (a) Existing POS terminals can't read QR codes off of consumers' smartphone screens, and (b) the company's website says that a smartphone or tablet is required to run its mobile app.

As with Dwolla and other payment methods not using card rails, the value proposition of CloudZync to consumers is not clear. According to this TechCrunch post, CloudZync is expecting merchants to push consumers to adopt CloudZync. Not sure why consumers should forego deferred payment and rewards, two benefits they enjoy with their existing credit cards, and start using CloudZync just because their merchant nudges them towards it.    

The apps should be available in the Apple iStore any day. The apps (both busienss and consumer) are available on Windows Phone 8 right now and the Android Zync Wallet will be available in the coming month or so...

The Wallet in its current release does need to have funds added to it, and this is done via a bank account. An update is coming soon that allows users to use the "Zync Tab" feature (if they are applicable) which allows the user to defer payments to the end of the month, allowing them to use the wallet much like a credit card

One of the reasons a photo id is shown to the business is because its something that the businesses that helped us understand their requirements basically requested. It provides the merchant with 2 form authentication while at the same time an added security layer for the consumer. It takes no extra time at the point of sale. Security and confidence is something that can always be improved, so this was an improvement that didnt detract from the user experience and added to the merchant.

Hi @Ketharaman. There is no additional hardware required in order to run the mobile app, and thats from both the business and consumer point of view. I agree, you do need a mobile phone. You are also right that not all POS systems have the right QR code readers, and if a business doesnt want to use our business mobile app, nor use QR code readers, we provide them with a web page portal that allows them to process a transaction by using the customers mobile phone number. This enables the business to therefore take mobile payments through any sales channel, in-store, over the phone, online.

The value proposition for the consumer is that they get instant access to personalised deals, vouchers and loyalty schemes directly from their fav merchants. They can also communicate and engage fully with their fav stores, deciding what data they want to share with them in order for the store to be able to use the wallet to better engage with customers, incentivise them and ultimately retain them.

Also, launching soon a Zync Tab feature, which will provide those who are applicable with the option of deferred payments. All of this is done at a fraction of the cost for businesses and deferred payments far far cheaper for the consumer.

I am running a Q&A on twitter at 12-1 UK time if you wish to engage with me further...

@AndrewS:

1. TY for clarifying that a web portal can be used in the absence of QR code reader or smartphone. Not sure if the ensuing manifold increase in transaction processing time will be acceptable in an in-store checkout environment, though.  
2. Since CloudZync doesn't seem to require any hardware addon to the smartphone, I guess a merchant who already accepts SQUARE / iZettle - and hence uses up a port on the smartphone for their dongle - can still accept CloudZync, which is good.
3. I know that stores want to engage with consumers but, if you believe that there are enough consumers wanting to engage with stores, that's great for CloudZync.
4. I agree that deferred payment could be a powerful value proposition for consumers who are used to enjoying it with credit cards.
5. Apart from enabling consumers to "sign up to loyalty schemes" as stated on your website, if CloudZync also lets them scan their existing loyalty cards to CloudZync (a la iOS Passbook, KeyRing, etc.), that would enhance its value proposition to consumers.

@katharaman,

Thanks. Agreed using the portal at the point of sale is not great for in-store experiences, but over the phone transactions, its perfect and very easy for the merchant and the consumer. You're right, Zync Wallet doesnt stop merchants using any other form of payment, its all about providing additional choices to the consumer from the business.

Your 5th point is spot on, and hopefully the release that includes our first look at this will be available in app stores in the next few weeks.