On 16 February 2012, Barclays launched in the UK its person-to-person (P2P) service for sending and receiving money via mobile phones. Barclays Pingit service allows users to send and receive money in near real time, for free, to and from anyone with any banking account and mobile phone number in the UK. The service is available for iPhone, Android and BlackBerry devices alike. However, initially, only Barclays customers will be able to use the app. It will be made available in March to other UK banks' customers.
Given that similar schemes have long been available elsewhere (in Africa, Asia, Australia, Europe, the UK (via PayPal) and the US) the service is not new.
Gartner however, views the new Barclays mobile P2P payment app as important because it could be a sign of a tipping point in the battle between the banks and mobile network operators in the mobile payments arena.
If the app becomes popular, Barclays could gain a significant early-mover advantage and establish a launch-pad for further mobile payment services.
Gartner believes that the Barclays solution addresses features that are key for mobile payment success, namely;
- Focusing on specific customer payment needs rather than trying to meet all needs.
- Targeting a market where neither mobile operators nor nonbank providers such as PayPal or Google have yet established a foothold.
- Using the mobile number as the identifier but including fraud management and protection of customer data.
- Leveraging a modern, near-real-time bank payment system.
- Making the system open, available to any customer from any bank.
- Making it free to payers and recipients.
These benefits include;
- Blocking entry to the market by mobile network operators and other competitors.
- Driving up payment volumes through its bulk payment gateway (so trimming per-transaction costs across the bank)
- Developing a customer database that it may potentially tap into to sell other services, and
- Paves the way for a future "digital wallet" mobile offering.
