Smartphone app that could replace your credit card: Banks claim new service will protect consumers from fraud

Culled from; dailymail Millions of shoppers will soon be able to pay at the till with their mobile phone, thanks to a new app. Britain’s biggest banks have backed Zapp, which will launchearly next year. The system is designed to work with the apps already offered by HSBC,Natwest, Nationwide and Lloyds, among others. When they reach the checkoutof a shop that accepts Zapp payments, customers will havea special code sent to their mobile phone. They will then confirm the transaction with one tap of the finger. Banks claim the technology willbe safer than using a debit card, as the unique code for that purchase will expire afterthree minutes. In addition, only retailers signed up to the scheme will be able to generate the codes. And unlike chip and pin cards, Zapp will never hand over sensitive information such as card numbers and expiry dates that can be used by criminals to commit fraud. Peter Keenan, Zapp’s chief executive, said the app ‘will allow millions to leave their wallets at home’. He added: ‘When you pay witha card in a shop or online, you give the merchant all sorts of details that would be dangerous in the hands of a fraudster. With Zapp, nothing is revealed, so it’s much moresecure.’ However, experts warn it is too early to rule out safety fears.Justin Modray, of finance website Candid Money, said: ‘Paying by smartphone obviously appeals to some and is growing in popularity. ‘However, it remains to be seen whether this throws up any major security issues. ‘The new technology will haveto be extremely fool-proof or it will cause more problems than it solves.’The success of Zapp will rely on shops, restaurants, and small businesses signing up tothe scheme. The app, which is still in development, will follow in the footsteps of Pingit, a similar service run by Barclays Bank. Pingit has more than a million users and allows customers tosend money another person or business by text message.