While the arrival of Ireland’s pillar banks into the modern world of money transfers is obviously a good thing it’s impossible not to wonder what took them so long and if they have left it too late to capture the attention – and the cash – of a critical mass of Irish consumers?
Earlier this week, we talked to half a dozen colleagues who are infuriatingly younger than us and asked what they made of the arrival of Zippay into our world.
Their faces were initially blank and when it was explained that it was an instant mobile payments system run by AIB, Bank of Ireland and PTSB those faces were creased with fresh confusion.
Without exception, they all wondered why they would need something new when they have been transferring money and splitting bills and buying tat at random flea markets (probably) using Revolut for more than a decade.
Not one of this small ad hoc focus group said they would abandon their Revolut accounts in favour of Zippay.
While such loyalty is admirable it is perhaps worth pointing out that not one of them said they would be happy to use Revolut as their sole – or even main – bank account either so it’s swings and roundabouts for the fintech.
Ireland’s pillar banks will be betting – and praying – that when it comes to using Zippay – these young folk are outliers. They will be fervently hopping that their new notion will soon be the verb of choice we all use when we want to send cash to someone without any fuss.
And the banks might well be on the money because while it most certainly has not been an early adopter, Zippay comes with advantages that even something as big as Revolut could only dream of – omnipresence.
But before we get to that we thought there we might answer some questions you might have.
So, first thing’s first. How am I supposed to pronounce this new word?
We’re going to go with Zip (tiny pause) Pay rather than rhyming it Enchante or sounding like someone from Dublin 4 or parts of England saying Zippy. We could, however, be wrong and will let the hive mind ultimately decide on how the word is said aloud. However you say it, it should not be confused with Yippay which was the previous incarnation of the pillar banks’ proposed instant payment system. It was abandoned in 2020 presumably because of its terrible name.
And what does Zippay do?
It allows you to send, request and split payments directly by using a mobile phone number. There will no longer be any need for an Iban – although they will continue to exist and be useful in some circumstances – and you will not have to set someone up as a new payee before you can transfer cash to them. All you will need is their mobile number and if they have Zippay too then the money will transfer to them immediately.
And if they don’t have Zippay?
Well then you won’t be able to transfer the money to them. But just like that U2 album that appeared by magic on people’s iPhones all those years ago – much to many people’s chagrin – the new payment system is being rolled out automatically to all customers of the three pillar banks who have mobile banking on their phone. That means that within a matter of days around five million people will have Zippay on their phone – and that is the key advantage the new system will have over upstarts like Revolut or N26. By the end of March you will be able to assume that everyone you are dealing with has Zippay.
And it is just people who have accounts with Bank of Ireland, AIB and PTSB right?
According to the Banking and Payments Federation of Ireland – the umbrella group that is coordinating the roll out the new payment system – the system will be widened beyond the three main banks in the future and cover any financial institution that offers their customers Iban numbers.
So, I will be able to Zippay money to a Revolut account and Revolut money to a Zippay account?
Well you will certainly be able to do the former but maybe not the latter and while it is a little confusing we will get over it.
What if I don’t want it?
There is a facility for opting out but the default option will be to have it.
How do I get started?
Well as we said Zippay will automatically appear on your banking app so you just need to go to that section of the app after which and you will be guided through the steps you need to follow to send money.
I have just checked and it is not there?
We did the same and it wasn’t there either. That is because it is being rolled out somewhat gradually but all users are likely to have it on their phones in a matter of days.
But if money can be transferred immediately to another person’s account from my phone how can that be safe? What happens if I lose my phone?
As long as you are the only one who can access your banking app then it is as secure as your current banking set-up and any such service anywhere in the world.
Are there any limits on how much I can transfer?
Yes, you will only be able to transfer a total of €1,000 each day using Zippay. And users will be able to request up to €500 in a single payment request each day.
What happens if I send the money to the wrong person by mistake?
That is obviously going to be a concern – it won’t be hard to mistype an digit after all. But the banks have implemented a couple of safeguards to stop you sending money to random numbers in error. So, if you want to send 50 quid to your daughter Mary Jane Pope and the mobile phone number you have entered is correct you will see something along the lines of “You are sending money to M**y Ja** P**e 0850000000. Do you wish to proceed” if you don’t see the right name alongside the number then that should be a clue that the number is wrong and you can abort the transaction.
And if something goes wrong and I do end up sending money to the wrong person or fear that my app has been compromised will I be able to speak to a human being?
This might be one of the key advantages Zippay has over other systems. Unlike many other operators out there – and not just those in the fintech space – the pillar banks still have actual people at the end of phone lines and while it can sometimes take a while for them to pick up you can be pretty sure they will eventually.
And how long will it be before I can start using Zippay as a verb?
It seems inevitable that it will catch on so you may as well start doing it now.
You can contact us at OnTheMoney@irishtimes.com with personal finance questions you would like to see us address. If you missed last week’s newsletter by Joanne Hunt about online recruitment scams, you can read it here .