Payments made with a simple text from UK mobile phone’s is expected to be rolled out to the masses in Spring 2014.
2012 saw the latest development in mobile banking after various UK banks created stand alone apps that allowed account owners to send payments to a friend using only their mobile number, this advancement has proven to be very popular.
UK account owners will be asked by their banks if they would like to opt-in to a database that allows transactions to take place and money be transferred by sending a text message. The new scheme is being backed by the Payments Council as well as eight major financial institutions.
The launch of text payments will bring the UK up to speed with the technology advancements that have long been in use around the world, in particular Africa where the text payment system (M-Pesa) have long been regarded as a safe way to transfer money between businesses and individuals.
The Payments Council spoke to the BBC last week as it announced it has taken the UK longer than anticipated to embrace the simple payment system, however this has been due to technical problems when building the database which powers the text payment system.
The text payment service looks set to be a safer way to make a transaction without handing over personal information such as account number and sort code which can often fall into the wrong hands. To ensure the text system runs smoother the Payments Council has said there will be a passcode set in place as a security measure which could not be abused.
Some of the power is left in the hands of UK banks as they will have the power to remove or disconnect accounts should the system be abused or suspected of misuse. However it has not been disclosed to the public what the financial limit of each transaction would be, the Payments Council have promised the service will combined security and convenience.
Would you use the text payments service or would you prefer to stick with your banking app?
