VocaLink announced it plans to launch early next year a new mobile payments app called Zapp, which it hopes will boost mobile payments at brick-and-mortar locations. The app enables consumers to pay either with a barcode or tapping a reader with their phones.
VocaLink believes Zapp will encourage consumers to make mobile payments because they can see their account balances before paying, giving the consumer a calm state of mind before purchasing any goods or services. If Zapp becomes popular, VocaLink is in a strong position to deliver on its promises as the company already processes over 90 percent of salaries in the United Kingdom, more than 70 percent of household bills and almost all state benefits. It also provides the rails for the Faster Payments Service.
VocaLink’s entry into mobile payments follows Barclay’s announcement about Buyit. While mobile payments options continue to grow, it is still only slowly gaining traction with consumers. Though Barclays’ Pingit application was widely successful, both Zapp and Buyit will find initial success more difficult given the lack of general consumer use.
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