House of Fraser, Shop Direct, Asda and Sainsbury’s will introduce Zapp mobile payments from next year. They are among a broad group of businesses that will roll out the payment method to a customer base of more than 35 million, who can use their mobile device and existing bank account to pay for goods.
Clarks, Dune and Bravissimo have also signed up.
The payments work through secure digital ‘tokens’, which means merchants do not need to store customer bank account details or have to pay for Payment Card Industry Data Security Standard (PCI-DSS) compliance.
Zapp moves money instantly from a customer account through real-time payments, a factor which the company says could provide a boost to retailers’ cash flow.
The core technology has been built and delivered and Zapp is working with banks and retailers to integrate it into their systems. Pilots are planned ahead of a launch in early 2015, which will include marketing and promotional activity aimed at consumers.
Andy Harding, executive director of multichannel at House of Fraser, believes mobile payments will be an important part of delivering the best retail experience and that the system offers customers a “simple, secure and easy way to pay for their shopping”.
Asda group treasurer Paul Fielding said: “Our customers want to have choice, not only of what they buy but how they buy it, and Zapp will represent a fantastic addition to our payment options.”
According to the Centre for Economics and Business Research, 20 million adults will use their mobiles to pay for goods and services by the end of the decade and the value of purchases will triple from current levels to £14.2bn in 2018.