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Barclays’ Pingit – will pinging money over your phone take off?

Barclays has launched a new smartphone application, called Pingit, which allows you to transfer money just by using someone’s mobile number. Can it revolutionise the way we bank?

I went out for dinner with a group of friends two weeks ago, and when it came to paying the bill I realised I’d left my debit card at home. Embarrassingly, I had to ask someone to pay for me and assure them that, if they gave me their bank account details, I’d transfer the money to them as soon as I got near a computer.

Ever found yourself in that situation? That moment when you tap your pockets and say ‘sorry, I haven’t got any cash on me, can I sort you out later?’ Personally, I can’t bear the thought of it (although my friend insisted I didn’t need to pay her back, so I lucked out).

Pinging money to your mates

But if you’re with Barclays and own a smartphone, you don’t ever need to be in that position again. Last week, Barclays launched a new app called ‘Pingit’, which synchronises your mobile number with your bank account and lets you send up to £300 a day over the phone.

Forgot your wallet? Get a friend to take some cash out for you and ping it back in to their account. Under the Faster Payments service, they should get it in as little as 30 seconds.

The service is only available to Barclays customers who own an iPhone, Android or Blackberry, but it is expected to be available for all other banks in March.

Not only has the app been downloaded over 120,000 times in the past five days, it really does work. We even tested it live on air in the Which? Money podcast this week. All I needed was a colleague’s number and how much I wanted to transfer, and just like that, the money was sent. You can even send a friendly text message along with it.

The revolution is here

In my view, this could completely alter the way we carry out our banking in the UK – with a mobile wallet that’s always stuck by your side. It makes the process of logging in to your bank account online and punching in someone’s account details seem as cumbersome as going to a bank branch.

I was surprised to learn that in places like Kenya, mobile transfers of this nature have existed for years. It has a reported 14 million subscribers and 28,000 agents, which allow Kenyans to withdraw money. The scheme has been so popular that it’s been rolled out to other countries, including Afghanistan and Tanzania.

Why on earth has it taken so long to come over to the UK? As technology develops, and the likes of near field communication become more prevalent, what we view as the conventional ways to pay are now going to seem like relics in just a few years. And I think Pingit is the start of that revolution.

But what about you? Are you ready to blissfully embrace this marriage of technology and finance? Or are you sceptical about the benefits or safety of services like Pingit?

Comments
Member

Saw in Aussie-made Science & Technology programme Beyond 2000
hand-held contactless electronic devices had been used to effect (small)
payments way back in the mid-90s if not earlier in Japan. If
using same technology, had been around for quite some time.

Am all for making life simpler or more convenient.

Member

Nice idea, shame about the lack of security. Banks said chip and pin was secure (from my experience I know how that’s just a blatant lie). I for one won’t be making use it ( being organised has its advantages ) and will eagerly await the first news story of how people mysteriously lose upto £300 a time all because banks and phone companies have no idea of what security is. Anyone remember the phone hacking scandal that’s still trundling along ?

Member
Matheus says:
28 March 2012

It should be said that the “Phone Hacking” didn’t actually involve any phones being hacked in fact it didn’t involve any hacking. It was just people using insecure passwords for their voicemail no phone were actually hacked.

This doesn’t have anything to do with phone operators above using your mobile number as unique identifier.

And why your are eagerly awaiting news of someone else’s misfortune is beyond me.

Just didn’t want you to continue misunderstanding the things you referred too.

Member

The reason I blame phone companies for the phone hacking is, how much effort would it take for them to issues phones with a random password and not the same insecure default ones. Not alot me thinks. But they have chosen to rely on people doing it for them.

Member

Shd expect the banks to underwrite losses in cases of
fraud AND on the basis of a presumption of innocence
nothing less.

Shall wait awhile and see how things go before embracing
myself.

Member

Hmmm, and these would be the same banks who would blame everyone for being careless with our pins, when its them being careless about security. We will have to wait and see whether the banks behave as you hope or as they’ve always done.

Member

I don’t want to stand in the way of new technology, but Barclays needs to be sure about the security of the system or all customers will pay, whether or not they use the system.

Member

Personally I think I’m more likely to keep using online banking at the moment, especially as I am not a Barclays customer and I find online banking straightforward to use and secure. But I might use mobile banking in the future when it becomes more widespread – I do think it is the future especially for the younger generation. Like all new technology it needs a bit of time to bed in so people can see for themselves if it works and how secure it is. So for me it is a wait and see!

Member
AM Miller says:
24 February 2012

I downloaded the PingIt app onto my Samsung Galaxy Note the day it was made available here in the UK. Validating it for use on my phone was extremely thorough… as thorough as applying for and validating online banking. Whilst I’m unlikely to use PingIt for paying friends (a £50 cap is in place), I do find the app extremely useful for checking the balance of my current account without needing to log in on my PC and needing to use a card reader. Access to the app (after validation) is still very secure because a 5-digit passcode (chosen by the account holder) needs entering each and every time you access the app. 10 out of 10 from me for Barclay’s PingIt!