Getting Paid By Mobile Phone Text Messaging
Instant Payment By Text Messaging
The UK Payments Council is set to launch a new service in spring 2014 that will allow mobile users to make payments via text message. The new service aims to allow direct, secure payments to or from an account using a mobile phone without revealing the sort code or account number.
Sending money via text is an interesting concept and should prove particularly useful to customers who do not have smartphones to load apps like Paypal or PingIT in addition to those who simply want a quick solution without the hassle of managing account numbers.
Supported by eight financial institutions that represent 90% of UK current accounts, the process will begin with banks asking clients to agree to opt-in to the programme. Planned to be administered by the Faster Payments service, the new scheme can only be used by interested customers, while account holders who do want their details in the database can choose not to opt-in.
Payments Council chief executive Adrian Kamellard said the mobile payments project allows the Payments Council to play a major role in delivering far-reaching improvements for customers. "This new service will offer a simple, secure way to split a bill for dinner, receive money from a friend or pay a tradesman without needing to remember or share account details," Kamellard said.
According to research by the Payments Council, the new service is expected to be mostly used by smartphone users, who accounted for 67% of the surveyed 5,000 consumers.
The final phase of the mobile payments project follows the recent completion of the central database that allows banks to securely store their customers' mobile phone numbers and connect them to their account details.
Barclays, Cumberland Building Society, Danske Bank, HSBC, Lloyds Banking Group, Metro Bank, Royal Bank of Scotland and Santander will be the first to adopt the latest programme.
Over 2014, the Payments Council's delivery programme will set new rules defining service standards for security, speed and other technical requirements.