UK witnesses influx of mobile payment services

The scheduled launch of mobile payment services by Swedish start-up Klarna in the UK by summer has cemented the growth potential of mobile transactions in the region.

The scheduled launch of mobile payment services by Swedish start-up Klarna in the UK by summer has cemented the growth potential of mobile transactions in the region.

Klarna asserted the fact that though the UK is largest e-commerce market in Europe, the region, however, is lagging in mobile transactions, reported The Financial Times.

The new service is designed to employ complex algorithms, verifying customers’ purchase history and transaction time to avoid any possible frauds.

The UK market, meanwhile, is seeing a surge in mobile transactions fueled by initiatives from corporations and banks including London’s transport authority seeking deals with telecom firms to enable use of phones with near field communications (NFC) chips to swipe on and off the Underground.

The Centre for Economic and Business Research claimed the value of goods and services purchased using a mobile phone is expected to witness three-fold growth to £14.2bn in 2018 from £4.8bn in 2013, with over 20m adults using mobile payments by the end of the decade.

Further, the mobile-to-mobile payments system Paym is expecting to expand its services to 90% of account holders in the country by the end of the year. Currently it has 500,000 registered members.

British Retail Consortium director-general Helen Dickinson was qqouted by the news agency as saying, "Customers are taking advantage of new ways to shop and pay. This is very much in line with the attention customers have paid to price and value during the recent economic uncertainty as they have sought to minimise payments from their budgets for everyday items."