What is Irish banks’ new mobile-payment service Zippay?

A new mobile-payment service from AIB, Bank of Ireland and PTSB has officially launched.

It is called Zippay and will be rolled out to roughly five million customers on a phased basis from tomorrow.

Here is what you need to know about the new service.

What exactly is it?

Zippay is the pillar banks’ answer to fin-techs like Revolut and N26, which have slowly been taking market share from traditional banks – especially among younger tech-savvy customers.

It is described as a person-to-person mobile-payment service.

It will allow around five million people (the current combined customer base of Bank of Ireland, AIB, and PTSB) to send, request and split payments instantly by using the mobile number of their contacts who are also using the service.

How does it work?

It is an in-app service available through the banks’ existing mobile banking apps.

Customers can send, request and split payments instantly by using the mobile number of their contacts who are also using the service (essentially what you can already do with Revolut and N26).

Instead of needing an IBAN or having to set up a new payee, people can just use a mobile number – much like sending a text message.

Customers will be able to send up to €1,000 per day as well as request up to €500 per transaction.

Banking and Payments Federation Ireland (the group representing the main Irish banks) said a key benefit of Zippay is that it avoids the need for topping up a digital wallet or downloading and using a separate app.

In theory this sounds positive but the technology behind the service will need to be slick and efficient to convince the over three million Irish Revolut customers to use Zippay over their current set-up.

Who is involved?

Zippay is a joint initiative from Bank of Ireland, AIB and PTSB.

So, if you are a customer of any of the above banks you will automatically be opted in to the service.

However, Zippay has left the door open to any other financial institution joining in.

This means that in time the likes of credit unions and other fintech banks could be added but they would have to pay for the privilege.

And realistically, neither Revolut nor N26 are likely to get involved as it would cannibalise their own offerings.

When can I start using it?

If you are a customer of BOI, AIB or PTSB and you use their mobile-banking apps then you will be automatically enrolled in Zippay from tomorrow, so it should just appear in the banking app you are already using.

Eligible customers will receive information through email and in-app messages.

There’s also a dedicated website (www.Zippay.ie) with additional information on how the service will work.

The roll-out is on an opt-out basis, meaning customers will automatically be included in the service unless they tell their lender they do not want to be.

But if you do not want to use it you can opt out, which should be straightforward and easy to do via the mobile banking app you are already using.

Will I have to pay anything extra to my bank or Zippay to use the service?

There will be no additional fee for using Zippay.

So, you will not have to pay your bank any more than you already do for day-to-day banking services.

How secure is it?

It should be as secure as your existing mobile-banking app, and the banks are keen to stress that Zippay carries the same level of security as the current banking apps.

To enroll customers, the banks are sharing personal details such as your name, IBAN, the mobile number you already registered to use mobile banking. and an encrypted combination of your date of birth and mobile number (this is to check if you have accounts with other financial institutions offering Zippay).

Other information shared includes the number of transactions on your accounts to check how often you have used each account in the last 90 days (this is done to choose your default account for Zippay in the event you have multiple accounts across lenders).

Zippay said all of this information is only shared with the “trusted service provider for Zippay” and not with other financial institutions, while data protection laws are followed when sharing any details.