Mastercard enlists Worldpay to promote app as PSD2 grows
The app was developed by Zapp, a unit set up by VocaLink in 2013 with the aim of bringing real-time mobile payments – in store, online and through apps – to millions of Brits by integrating its system into bank apps and tapping into the Faster Payments rails.
Mastercard acquired Pay by Bank as part of its 2016 purchase of Vocalink, the U.K.-bank owned payments network operator. The system, which allows consumers to access their bank’s app from a merchant’s checkout page, could be easily duplicated under Europe’s PSD2, which allows third parties to tap into bank data for their own services.
Worldpay will offer Pay by Bank, which was launched by Vocalink in 2015, to its U.K. merchants early next year. It will join two other acquirers that have already integrated with Pay by Bank: Barclays Corporate, which provides banking and payment services to businesses, and Wirecard. Barclaycard, Barclays’ main acquiring and issuing business, plans to integrate with Pay by Bank in 2019.
“Our Worldpay and Barclaycard deals are important, as anyone in the U.K. payments industry who needs scale with retailers must sign up Worldpay and Barclaycard,” said Jon Wood, senior vice president of consumer applications at Mastercard U.K. “We will be launching Pay by Bank with Wirecard’s U.K. merchants in the next few weeks. Pay by Bank is already the funding mechanism for Wirecard’s Boon virtual prepaid Mastercard account.”
The U.K. has seen significant growth in mobile banking in recent years, which may help Pay by Bank gain adoption. According to “The Way We Bank Now,” a report by EY and UK Finance, the country’s banking and payments industry association, U.K. customers logged into mobile banking apps 5.5 billion times in 2017, a 13 percent increase from 2016. This represented an estimated annual average of 275 logins per customer in 2017, UK Finance said.
Mark Barnett, president, Mastercard in UK, Ireland, Nordics & Baltics, says the app is “set to play a big role in UK digital commerce, as more banks and merchants offer this as a payment option to millions of their customers”.