Mobile Money

From as early as the start of next year every bank customer in the UK may be able to transfer money just by using their mobile phones. Barclays are the first bank to launch an app on for their customers (providing they own a smart phone) and the rest of the banks in the UK are looking set to follow suit.

The banking industry is now working on a new database which will enable them to link all customers’ mobile phone numbers to their banks accounts.

With the growth of both smart phones and the popularity of apps continuing to grow this seems like a logical step customer’s look to converge more of their technologies and accounts all into one easy place.

The aim is to make payments and transfers to business and friends as quick and as easy as possible:

A payment using the app will go like this:

• choose the app on your smartphone screen
• enter a Pin number or passcode to log on to the app
• chose the recipient and select their mobile phone number
• enter the amount to be paid and any reference details eg “lunch” or “loan”
• enter a Pin number or passcode to confirm the transfer
• the payment is then made, details will appear on the recipient’s app, and your account will show your reduced balance.

Although this will undoubtedly make banking much easier for most of us it does raise some serious questions regarding security. Many of us will have at least once experienced the dread of losing our mobile phones and with so much personal information know on them having your banking details will bring to light even more concerns.

Some of the negative press regarding this technology is the possibility of hackers creating fake apps in order to access your banking details but the banks stress that they are working together to ensure the mobile money technology is as safe for users as possible.

One thing is for sure the mobile phone replacing your wallet is moving a step closer!