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.
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
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.
"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
What they said
Question: How does the retailer communicate the six digit number for the customer to type in?
Someone say somthing nice about this new mobile game changer (pleeeze) even if its only..... "nice name"
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...
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).
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).
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
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!
Frank Zappa has a mobile payment app?
Since the PIN supplied by Zapp will only work on one mobile phone, Zapp is already 2FA.
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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