Monday, 21 January 2013

Payments By Text, Replace Payment By Cheque For Small Businesses

By the start of next year, every bank customer in the country may have the ability to transfer cash between bank accounts, using an app on their mobile phone. Barclay's became the first bank to launch an app for its own customers. As Mobile phones have become an essential part of our everyday life, the technology has grown significantly over the past decade and mobile phones have many uses from taking photos to banking. 

Having your customers know you except this form of payment, will be positive move to the susses of your business. Contacting customers with a email news letter early in 2014, letting them know your payment details and how easy it will be. 

It will be interesting to see if there will be any charges for businesses excepting this payment! 
End of the cheque?
"The banking industry denies that this is all a cunning plan to ensure the demise of the cheque. An outcry from MPs and consumer groups last year forced the banks into a highly embarrassing U-turn. After planning to phase out the use of cheques by 2018, the banks had to promise to keep accepting them, more or less in perpetuity. But about 25% of all cheques are written by individuals to pay other people, credit card bills, businesses such as tradesmen, and regular bills. If these payments switch wholesale to ones triggered by mobile phones, cheque use could drop even faster than before."

UK mobile users will be able to send and receive money by sharing only their phone number by spring 2014, the Payments Council has said.
Account owners will be asked by their banks if they want to opt-in to a database that will allow the sending of money by text message.
Its launch will bring the UK up to speed with technology long in use in the developing world.
Mobiles in the UK are already being used for a variety of online banking tasks, with services such as Barclay's PingIt simplifying sending money to and from accounts.
But this new set-up will be the first to not require users to set-up a separate account with a mobile wallet service. Account holders who do not wish to have their details in the database will be able to refuse - only customers who opt-in will be signed up. "The scheme will be administered by the Faster Payments service which processed more than 800 million online and phone banking transactions in 2012 - and the Link network, which processed 3.1 billion cash machine withdrawals last year."
Joined-up accounts
The system will mean people can send and receive money to others by sharing just their mobile number, rather than having to swap other details such as sort code or account number. However, the Payments Council said a passcode or similar security measure would ensure the system could not be abused. Also, banks will have the ability to remotely disable accounts suspected of misuse. The limits regarding how much money could be transferred with the service would be put in place, but that the amount had not yet been decided. Research would be conducted to make sure the limit represented a blend of "convenience and security", 
The Payments Council is working on getting the remaining financial institutions who are not yet involved in the project on board.
The eight institutions already backing the service are:
  • Barclays
  • Cumberland Building Society
  • Danske Bank
  • HSBC
  • Lloyds Banking Group
  • Metro Bank
  • Royal Bank of Scotland
  • Santander

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