Text messaging may have become slightly less popular thanks to instant messaging on your smartphone but now it looks like the SMS could be making a comeback. A UK text messaging payment service is heading to a high street bank near you so you can simply send and receive money with a SMS.
This service will be supported by Barclays, Cumberland Building Society, Danske Bank, HSBC, Lloyds Banking Group, Metro Bank, Royal Bank of Scotland and Santander at launch. With so many of the big names on board from the beginning this service should really take off, as the issue with many other payment services is that they just didn't have enough participating retailers.
The service will be easy to use with no additional apps or software needed, you will simply opt-in to the database and once you have you are ready to send and receive payments.. Once you have the service you will be able to send and receive money by simply swapping mobile numbers, rather than needing each other’s sort codes and account numbers.
The Faster Payment Service and the Link Network will be running the scheme and as these have handled over 800 million online banking transactions in 2012 and 3.1 billion cash machine withdrawals between them they are well equipped to handle a good demand on the service. Those worried about the security will be assured to know there will have a passcode security measure applied to it so it can't be misused by someone who gets hold of your phone.
With no complicated sign up process, no additional apps or software needed and so many of the financial institutions in on it right from the off this could prove to be a very popular new service on your phone. The service is set to launch in early 2014 so we can expect a few more participants to get on board before it takes off.