Paying without cash or a card

Posted by Josh Conibear in Personal Finance on 7 February 2014 - Josh worked as a Credit Analyst at checkmyfile until 2014

The concept of paying for goods with a mobile wallet may still be an idea of the future, but a cashless and cardless World really is on the horizon.

The niche market for using your smartphone to purchase goods is becoming a reality, empowering the user to make purchases in-store, paying back a generous pal, and even transferring money abroad, all with the touch of a phone.

So what apps and tech should you look out for in 2014?

PayPal

The biggest facilitator of online payments, PayPal processes in excess of $300 million per day. With apps on all major smartphone platforms and a mobile-friendly website (as well as a separate card reader and merchant products), PayPal is the most established mobile payment service.

Although PayPal’s main selling point – sending money to someone using just their email address – still works exactly as it always has, but has a reputation for hit-and-miss customer service, charges higher fees than challenger services and is beginning to make the poster child for mobile cash look a little over the hill.

That said, PayPal is still leaps and bounds ahead of most financial institutions with its new fully-native checkout service for merchants.

GoCardless

Ostensibly a no-nonsense system for collecting recurring fees, the UK only company GoCardless is a great way to collect one-off payments, with flat fees of 1%, capped at £2.

As the name might suggest, GoCardless is all about ditching credit cards altogether by relying on the Direct Debit system to power payments. Payers simply provide their bank account details and the payment will be sucked from their bank account and into your own.

There’s no mobile app, but the responsive forms throughout the site ensure that you’ll have no problem arranging payments from a smartphone browser with no plastic involved.

TransferWise

Jetsetting type with friends littering the globe? Clever crowd-powered currency swappers TransferWise will not only charge you much lower fees than a bank, but will give you a much better exchange rate too.

This financial sorcery is actually deceptively simple – when you make a transfer, the money never leaves its country of origin. Your deposit is matched with another in your recipient’s country, and sent out domestically.

A usability dream, TransferWise’s mobile site will have you flinging payments around the globe in minutes.

Your bank of choice

With almost every bank now sporting a mobile app of its own, you no longer need to go in-branch or use ATMs to make transfers. Barclays in the UK has a dedicated app, Pinglt, to take care of simple money transfers between individuals.

Going shopping? Then try these options for size.

Square

If PayPal is the granddaddy of online peer-to-peer payments, Square is surely the grandmomma of card-reader dongles. Effectively turning your iPhone or iPad into a cash register with a tiny card reader inserted into the headphone jack, Square is the progenitor of similar products from Verifone, Groupon and even PayPal.

Now processing tens of millions of dollars per day, Square has branched out into entirely cardless payments, allowing customers to settle up simply by checking-in at the store via the Square Wallet app. When they check out, the cashier confirms their identity and the Square payment system handles the rest.

Google Wallet

The US-only option and the only contactless-powered app, Google Wallet does just about everything you might want from a mobile wallet app. Pay by tapping your phone at the checkout, send money to friends with just an email address; you can even order a plastic card that will let you withdraw your Google Wallet balance from ATMs, something to look forward to in the United Kingdom.

TabbedOut

Built specifically for use in restaurants and bars, TabbedOut allows you to pay with your smartphone at any establishment that supports the app. You can see your tab in real time, add a tip and even split the bill.

TabbedOut also interacts with merchants – you can leave feedback , sometimes for vouchers towards your next visit. You can see your tab in real time, add a tip, and split the bill.

The question is, who will win out? O2 the mobile giant has had to axe its mobile wallet service less than two years in, displaying the difficulty of maintaining a profitable payments business in current economic times.

But the options are there for us to try right now.

The Advantages & Disadvantages of Store Cards

There are a number of reasons you might take out a store card: whether you’re just waiting in-line at the shop and find out you can save on today’s shopping or they offer the promise of making money in the future, these cards regularly find their way into wallets (or phones via an app). Most big retailers offer their own cards, which allow you to take your purchases home – often with a nice discount applied – without having to part with a penny at the till.

Published on 10 Jul 2018 by Tom Blandford

Full Article

What Happens To Your Credit Report When You Move Country?

Moving from one country to another results in a lot of changes and new things – a new place and culture, new job, new people and in some cases even a new language. However, one thing lots of people do not realise is that you will also be starting afresh when it comes to your Credit Report. Credit Reports and the information they contain are country-specific and do not follow you from one country to another.

Published on 27 Jun 2018 by Kirstie Day

Full Article

What To Do If You’re a Victim of Data Breach

Another day, another high-profile data breach, with the morning news bringing word of another leak of personal information that affects millions of consumers. This time it’s the turn of Dixons Carphone - the company behind PC World, Currys and Carphone Warehouse.

Published on 14 Jun 2018 by Jamie Mackenzie Smith

Full Article

What Does Bongo Know About You?

“What does Bongo know about you?” A slightly off-the-wall question I’ll grant you, but one that you might have been asked at some point in time.

Published on 7 Jun 2018 by Richard Catlin

Full Article

Why Don’t Millennials Take Out Credit?

As a millennial, it can feel like my generation is besieged with criticisms on a daily basis, and not all of them are entirely fair (though lots are). We are frequently told that as a generation we are entitled, we have it so much easier than our elders and arguably, worst of all: we buy too many avocados. While I don’t buy avocados, I do have access to credit, which makes me a minority among my age group.

Published on 16 May 2018 by Beth Jennings

Full Article

Why Is My Loan Balance Wrong On My Credit Report?

One of the single most important pieces of information to appear on your credit file is the information relating to your credit agreements and how you repay them - with this information lenders can see your borrowing history across the last six years and use it to help them decide whether or not to offer you finance.

Published on 7 May 2018 by George Coburn

Full Article

How long do closed accounts appear on my credit report?

Some people believe that as soon as a credit agreement is settled and closed, it will no longer be reported to the UK’s Credit Reference Agencies and therefore will no longer have an influence on future credit applications. However, this is a popular misconception, one that could affect your ability to get credit if not correctly understood.

Published on 2 May 2018 by Tom Magor

Full Article

How to Save Big in the Bank Holiday Sales

Bank holidays may not guarantee a day of sun-soaked fun, but as is British tradition, we’d probably be quite happy barbecuing in the snow if it came to it. But no matter what your plans are, if you want to grab a bargain, you can use the Bank Holiday sales to save some serious money.

Published on 26 Apr 2018 by Kiah Phillips

Full Article

Should I Buy or Finance an Aston Martin Valkyrie?

We’ve all been there. £3 million burning a hole in your pocket and a track-going version of Aston Martin’s latest hypercar sat in front of you. But as a shrewd, savvy business-type, you know that dropping £3m in one go on a 1,100bhp car could be considered a questionable, perhaps even ‘baller’ move. But what about putting it on finance?

Published on 13 Apr 2018 by Jamie Mackenzie Smith

Full Article

How to Build Credit History Without a Credit Card

When it comes to the best way to build up a credit history, conventional wisdom is to take out a credit card and use it for everyday purchases, while paying it off (on time) at the end of every month. There’s plenty to support this advice too, as a credit card allows you to spend as much or as little as your limit will allow, while building a history in a reasonably short amount of time.

Published on 26 Mar 2018 by Jamie Mackenzie Smith

Full Article
keyboard_arrow_left

keyboard_arrow_right

We have loads of great customer reviews