Barclays has become major bank in Europe to allow customers to transfer money to friends via mobile phone.
The PingIt service is not the same concept as "swipe to pay" systems (formally known as near field communications) that allow customers to pay retailers with a phone rather than a card. Instead the new service is for personal transfers such as when a group of friends divide a bill after a restaurant meal.
The service only requires the payer to be a Barclays customer. The recipient simply needs to register a bank account number with the service and link it to their mobile phone number. It's also possible for an unregistered person to receive a payment, though they'll need to register within 24 hours to get the cash into their account.
Making a payment takes around 30 seconds and requires the payer to type in a five (rather than four) digit PIN code to their phone. Both the payer and recipient then get a text message to confirm the payment has gone through.
The maximum payment on a single transaction is £300, while any individual recipient will have a daily total limit between £300 and £5,000. Though the service is limited to personal rather than business accounts, it may be useful for sole traders such as repairmen.
