Zapp partners WorldPay to hawk mobile payments to retailers

Zapp has struck a deal with WorldPay that will see its mobile payments system made available to thousands of merchants, including big names such as WH Smith and McDonald's, from next year.

  7 14 comments

Zapp partners WorldPay to hawk mobile payments to retailers

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Set up by VocaLink earlier this year, Zapp is promising to bring real-time mobile payments - in store, online and through apps - to millions of Brits by linking their bank accounts and phone numbers.

Banks who agree to take part in the service (Zapp says it is in advanced talk with five of the six major high street players) will integrate the system into their mobile apps and then invite customers to opt in.

Then, at participating retailers, users shopping on their phone or tablet who click the pay by Zapp button will be taken to their mobile banking app, where they will be shown their account balance before being asked to confirm the transaction.

On a desktop or in-store, the payment terminal or browser will generate a six digit Zapp code which the user enters into their mobile app to complete the transaction.

The WorldPay deal sees Zapp gain a powerful ally in its bid to bring retailers on board ahead of next year's launch. The pair will work together to push Zapp to WorldPay's thousands of merchant customers, which include giants such as Superdrug and Lidl.

Peter Keenan, chief executive, Zapp, says: "I am delighted to announce this partnership between Zapp and WorldPay to roll out Zapp mobile payments in 2014. WorldPay is a crucial partner in the establishment of the Zapp payment eco-system that will deliver benefit for financial institutions, retailers and customers alike."

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Comments: (14)

A Finextra member 

This sounds a bit clunky? - does anyone know if there is a video showing the User Experience here?

I am Not sure why a Consumer would use this?   easier to key a 4 digit Pin for your debit card  than open up online banking to authenticate yourself  then  wait for a One time 6 digit pin at the checkout.....  to be entered manually (keying errors etc) sounds problematic.

The Bank integration sounds great with Vocalink  - BUT Merchants like Lidl/Aldi would not be able to sustain the Delay at the checkout that this process is likely to entail in my view.  Aldi and Lidl Customers might object when the odd early adopter is holding up ten or 12 of them in the Checkout whilst their kids just want to get on with their day.

A Finextra member 

"On a desktop or in-store, the payment terminal or browser will generate a six digit Zapp code which the user enters into their mobile app to complete the transaction."

Seven-character comment: M-A-D-N-E-S-S

A Finextra member 

What they said

A Finextra member 

Question:  How does the retailer communicate the six digit number for the customer to type in?

A Finextra member 

Someone say somthing nice about this new mobile game changer (pleeeze) even if its only..... "nice name"

A Finextra member 

By either turning POS terminal around with the code on it;

or by pushing the code to the mini-screen where you normally see the transaction amount (asking you to verify the amount first);

or by sending you an SMS; 

or by using vocal cords;

or via some other simple, elegant, sexy, intuitive and fast communication method ideally suited for advising a 6-digit number...

On a serious note, we have VocaLink and ex-VocaLink people here at Finextra, perhaps they can cast some light...

Matt White

Matt White North America editor at Finextra

From the PR: "Zapp can...be used at the point of sale for NFC, QR code or any other system that a retailer has implemented."

Frankly, when I spoke to Keenan a while ago I got the impression that the details on exactly how it's going to work at the POS hadn't been completely ironed out (for online and in-app payments, it seems clearer). 

A Finextra member 

And they may encounter IP problems on such process (although it's crazy that something as trivial as passing an OTP code through mobile phone's display could be patented).

Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

Boku, Zong and many other Gen Y Mobile Payments (GYMPs) operate on a similar basis. However, they restrict themselves to online payments, for which usage scenario they definitely deliver a superior UX compared to entering 40-50 keystrokes of credit card info and getting shunted around to VbV website, and so on. But, for in-store usage, this seems like a solution seeking a problem from the consumer adoption perspective.

A Finextra member 

They need to come up with a workable system for retail PoS otherwise those 'multi-channel' retailers will only have limited interest in it.

The cost is also unknown at this stage. If it's priced lower than debit it may be of interest to retailers, but if it's at par (or more) then their plans for mass adoption will be that much harder.

The UX is also highly dependent on the quality of the mobile banking app. If the customers bank requires input of a username and two-factor authentication users just won't bother using it!

A Finextra member 

Exactly! https://www.finextra.com/blogs/fullblog.aspx?blogid=8150

A Finextra member 

Frank Zappa has a mobile payment app?

Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

Since the PIN supplied by Zapp will only work on one mobile phone, Zapp is already 2FA.

A Finextra member 

The Online experience sounds really nice. Also, seems to me that the Zapp / Bank offering can do things that the cards models just can't due to the strength and development trend / strategies of the digital / mobile banks. 

I think that for a starting position on POS, its a great starting point. Seems like they are hitting the same customer experience issues as the other payments players - I mean, what's happening with NFC? Zapp say they doe NFC, QR and this Zapp Code thing. Seems they have all the bases covered, and at least the Zapp Code is secure (although last of the 3 offerings you'd have thought?). It also sounds like it will work pretty seemlessly with the new iPhone beam-bluetooth thingy. 

Some "prepare the payment in the queue" type stuff would be useful, and I can't see why that wouldn't be possible. It would mean asking the consumer to put the digits into the POS terminal, rather than taking digits from the merchant to go into the mobile app - but personally I think that would be better and encourages the merchant to get the NFC solution working! Which would help me with my contactless credit card, but that's another debate... :-) 

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