Unlike the U.S., where only a handful of mobile payments giants like PayAnywhere dominate the consumer and enterprise markets, in Europe there is ample room for new leaders in the mobile payments space to emerge and claim a significant share of this profitable and fast growing market.
Most recently, a number of British banks and financial institutions announced that they will integrate the Zapp mobile payment service into their smartphone and tablet apps. The integration gives customers the ability to pay in store and online without the need to carry cash or plastic.
The first lenders to embrace Zapp and promise a fall launch of the service are HSBC, First Direct, Nationwide, Santander and Metro Bank.
Eden Zoller, principal analyst in Ovum’s consumer team, says that Zapp has proven an impressive platform that will likely see continued adoption across the financial world.
“Zapp has taken its time to put in place a solid foundation for its mobile payment service ahead of this launch, instead of rushing to market with a half-baked offering,” Zoller says. “Integrating Zapp with existing financial services is a good move as these are the brands that consumers trust the most to deliver m-payments, as shown by Ovum’s Consumer Insights survey where 32% of UK respondents chose banks as their most trusted m-payment service provider.”
The Zapp application looks like it is trying to keep things simple and convenient for consumers, Zoller adds.
“The Zapp application does not require consumers to directly reveal account information to third parties, which might ease the concerns consumers have with security of mobile payments,” the analyst concludes. “In Ovum’s Consumer Insights survey, 52 % of UK respondents did not think m-payments were secure.”