Barclaycard, which has an overview of nearly half of the UK’s credit and debit card transactions, is partnering with VocaLink to enable its merchants to accept mobile payments through Pay by Bank app.
Pay by Bank app will allow shoppers to pay quickly and securely for goods and services on a mobile device, without the need to enter credit or debit card details. By using Pay by Bank app payment button at the point of purchase, customers can login to their mobile banking app which will seamlessly authorise and complete the transaction.
With over half of online transactions now made through mobile devices, 30% of these shoppers ‘abandon’ their cart before completing the transaction. This growing trend of ‘cart abandonment’ is an industry wide problem for online retailers. Pay by Bank app is designed to boost sales for merchants as it simplifies the checkout process and increases the number of shoppers that complete the purchase.
By partnering with VocaLink, Barclaycard will work with its merchants to provide the payments technology, known as an e-commerce gateway, to authorise and process payments made through Pay by Bank app. This means that when a transaction is made, the payment is taken from the shopper’s bank account and deposited into the retailer’s account in almost ‘real time’.
The payments are processed using secure digital “tokens”, which encrypt financial information ensuring that customers never release personal details when they are shopping on the retailer’s mobile website.
Whether users are registering for the first time or paying with a mobile, Pay by Bank app utilises the bank’s own security methods to verify the user. In addition to the trusted bank security, Pay by Bank app customers can see their account balances before they pay, helping to manage their money more easily.
Merchants already using Barclaycard’s payment gateway services will be able to integrate Pay by Bank app onto their mobile websites This will allow millions of consumers who shop with Barclaycard’s merchants – which include some of the biggest names in retail – to take advantage of seamless shopping on the move.
Barclaycard said it is firmly focused on making buying and selling easier for retailers and shoppers across all channels, and the relationship with VocaLink is one of a series of new partnerships to provide customers with flexibility and choice. In December Barclaycard announced it is joining forces with the world’s largest online payment platform, Alipay, to speed up in-store payments by allowing customers to pay on their mobile devices by scanning product barcodes at the point-of-sale.
Paulette Rowe, managing director of Barclaycard Payment Solutions, said: “Mobile commerce is booming, and with it brings demand from shoppers to pay quickly and securely. With this, retailers are constantly trying to enhance the mobile shopping experience to make it as safe and frictionless as possible. Barclaycard has a 50-year strong heritage in payment innovations and partnering with VocaLink is just one way we are improving the relationship between buyers and sellers to continue to make shopping safer, secure and more convenient.”
Rajiv Garodia, managing director of Pay by Bank app, said: “We are thrilled to have Barclaycard join the growing group of payment providers, financial institutions, and retailers joining up to support Pay by Bank app. Barclaycard brings significant scale to our ecosystem. They have a huge portfolio of retailers that are important in the lives of consumers and we’re looking forward to supporting a more convenient, secure mobile payments landscape making Pay by Bank app the natural way to pay.”