BARCLAYS has launched a mobile app that could see the bank poach thousands of customers from rivals by giving them the ability to pay without cash.
The app, called Pingit, is aimed at boosting Barclays’ brand by linking the lender to a convenient service. It lets users link their mobile number to their bank account – with Barclays or a rival – and then send cash to any other registered user using a five-digit PIN code.
Barclays head of retail Antony Jenkins told City A.M.: “It lets us build relationships with new customers as well as strengthen relationship with our own customers.”
That gives the bank a chance to peel off customers from its rivals one service at a time – effectively un-packaging bank products so that account-holders more commonly use different banks for different financial services.
Jenkins said: “We will hope this forms a favourable impression in the minds of non-customers so when they’re thinking about a savings or mortgage product, they will come to us... We expect the benefit from that to be powerful.”
He would not detail how much Barclays has invested in the app beyond saying it is “significant”.
Jenkins is not sure what uptake is expected or where the returns will come from, but said: “Once you have engaged customers using the product you then have the opportunity to talk to them about other things.”
He added that the aim is not to use the app to flood users with marketing material, however.
The app is aimed at a mass market for those who need to quickly send small amounts to one another, for example when splitting a bill in a restaurant or, in the case of small business owners like plumbers, collecting a fee after a job.
It will be rolled out first in the UK and Italy.
HOW TO PAY WITHOUT CASH
• The ubiquitous Oyster card is a cashless payment method for London’s transport system and many National Rail services.
• McDonalds, Pret and Boots are among the UK shops where you don’t have to fumble for spare change. You can pay by tapping your Visa or Barclaycard on a reader.
• Orange Quick Tap lets you spend up to £15 by holding your phone over a contactless reader. This function, which links to your Barclays account, is currently available on Samsung’s Tocco and Wave 578 phones.
• O2 is working on similar technology after running a trial in Sitges, Spain. O2’s Mobile Wallet will double as an Oyster card, host several bank and loyalty cards and allow you to text cash to other phones.
• The Google Wallet mobile app also works by letting you tap your phone on a reader. It is currently only available in the US, but rumour suggests Google Wallet could land in London before the Olympics.
• Dwolla is another app, on iOS and Android, which facilitates money exchange in store and with other users, much like Square. Both apps are only available in the US.
The app, called Pingit, is aimed at boosting Barclays’ brand by linking the lender to a convenient service. It lets users link their mobile number to their bank account – with Barclays or a rival – and then send cash to any other registered user using a five-digit PIN code.
Barclays head of retail Antony Jenkins told City A.M.: “It lets us build relationships with new customers as well as strengthen relationship with our own customers.”
That gives the bank a chance to peel off customers from its rivals one service at a time – effectively un-packaging bank products so that account-holders more commonly use different banks for different financial services.
Jenkins said: “We will hope this forms a favourable impression in the minds of non-customers so when they’re thinking about a savings or mortgage product, they will come to us... We expect the benefit from that to be powerful.”
He would not detail how much Barclays has invested in the app beyond saying it is “significant”.
Jenkins is not sure what uptake is expected or where the returns will come from, but said: “Once you have engaged customers using the product you then have the opportunity to talk to them about other things.”
He added that the aim is not to use the app to flood users with marketing material, however.
The app is aimed at a mass market for those who need to quickly send small amounts to one another, for example when splitting a bill in a restaurant or, in the case of small business owners like plumbers, collecting a fee after a job.
It will be rolled out first in the UK and Italy.
HOW TO PAY WITHOUT CASH
• The ubiquitous Oyster card is a cashless payment method for London’s transport system and many National Rail services.
• McDonalds, Pret and Boots are among the UK shops where you don’t have to fumble for spare change. You can pay by tapping your Visa or Barclaycard on a reader.
• Orange Quick Tap lets you spend up to £15 by holding your phone over a contactless reader. This function, which links to your Barclays account, is currently available on Samsung’s Tocco and Wave 578 phones.
• O2 is working on similar technology after running a trial in Sitges, Spain. O2’s Mobile Wallet will double as an Oyster card, host several bank and loyalty cards and allow you to text cash to other phones.
• The Google Wallet mobile app also works by letting you tap your phone on a reader. It is currently only available in the US, but rumour suggests Google Wallet could land in London before the Olympics.
• Dwolla is another app, on iOS and Android, which facilitates money exchange in store and with other users, much like Square. Both apps are only available in the US.
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