Dutch banks are working on new p2p app

Friday 21 April 2017 | 09:41 CET | Background
Six Dutch banks are introducing payment service Payconiq to the Netherlands. The app, already available in Belgium, can be used for for payments in shops and online, as well as for peer-to-peer payments for consumers. ABN AMRO, ASN Bank, ING, Rabobank, RegioBank and SNS aim to offer Payconiq from this summer onwards. 

The app makes a direct link between the customer's account and the participating bank. For payments among friends and family, a phone number from the contact list will be sufficient; the customer will not need to know the account details of the recipient. 

Payconiq is formally based in Amsterdam, with offices in Brussels and Hasselt. The payment platform has been developed as part of an incubator program at ING. It was tested at the University of Leuven. In Belgium the service was initially supported by ING and KBC, while CBC and Belfius have joined later. Online payments can be made via the app or by scanning a QR code. More than 25,000 Belgian retailers accept Payconiq payments. 

Via the connected app Joyn, users can also save advantage points. Joyn, also with offices in Brussels and Hasselt, develops loyalty programs for small or independent retailers, such as ‘your sixth cup of coffee for free’.  Retailers use an iPad app to scan all loyalty cards, allowing them to review the customers’ buying behaviour and to manage the advantage point system. Identification of customers is based on location. Joyn is building up a local network of retailers and advertisers, so points can also be exchanged at e.g. the local car wash. The concept is based on citymarketing via a network of ambassadors and consultants. 

Support of six Dutch banks but also enough competition

The Dutch banks will start to connect customers to the platform. Payconiq allows payments via mobile number or email address. Users don’t need to know lengthy account numbers to pay or request a payment. The direct link between the current account and the Dutch banks will be available in the summer of 2017. From then on payments can also be made in various Dutch web shops and physical shops.  Payments in shops will be feasible online via the app or offline via QR codes. There are currently no more details on the exact planning according to a Payconiq spokesperson in Amsterdam. There are also no plans at the moment to link the Dutch version to a loyalty program like Joyn. 

In the app stores Payconiq will feature next to several other payment apps, such as ABN’s Tikkie and Rabobank’s GRPPY. A possible advantage for Payconiq is the broader support, of six leading Dutch banks. However, it also faces competition from non-banking providers of p2p payments such as Paypal, but also majors like Google and Facebook are working on this. 

The launch means banks are moving forward with PSD2. Under the forthcoming Payment Service Directive, all banks must provide access to third parties. This means other payment services providers will be able to access bank account details held by banks. This will lead to a large number of new financial products, both from banks themselves and from outsiders. In this new area traditional banks are developing like start-ups, offering new platforms, apps and services. A number of banks have built apps over the past year. For example, ING is working in the UK on Yolt, a platform that will enable people to manage their different bank accounts.

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