Barclays, the global banking and financial services company, has launched ‘Pingit’ – a system which uses a mobile phone application to allow cash transfers of up to £300 from one person to another.
Smartphone users who bank with Barclays are able to download the app, link it to their phone number and then transfer cash to anyone else who has also linked their mobile number to their bank account.
What’s more, from March 2012, anyone with a UK bank account will also be able to use the service.
Unlike NFC technology, Pingit does not require the user to have an NFC enabled handset and with many smartphone users already familiar with applications, industry experts have predicted that the service will become successful.
As with any financial system, security is paramount.
The Payments Council is in the process of creating a database of UK mobile numbers which are linked to bank accounts and users will have to ‘opt-in’ to have their details recorded.
Interestingly, whilst the launch of Pingit seems symbolic of a leap forward for mobile banking, it appears that the United Kingdom and other European countries remain behind the rest of the world when it comes to mobile banking methods.
This is particularly true when compared to countries in the developing world.
M-Pesa, the Kenyan mobile banking system, was launched back in 2007 and is now commonplace in African society.
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