Barclays has upgraded its Pingit mobile app to enable businesses to pay individuals via their smartphone, offering a 'faster and cheaper' alternative to cheque payments.
The update to Pingit lets corporate users transfer funds to customers using their phone number, rather than accountnumber sort codes or credit card details.
The Pingit app, first launched in 2012, allows users to conduct person to person transactions, and has since been downloaded 2.2 million times. Businesses such as Severn Trent have also used the technology to simplify bill payments.
Barclays aimed the new Pingit functionality at businesses that currently make heavy use of cheques.
"The update is designed to target those corporate customers that are looking to migrate cheque flows to something faster, more secure and cheaper," Mike Walters, head of UK corporate payments at Barclays, told ComputerworldUK.
"We see this being particularly prevalent with insurance companies that are doing payouts for claims, and in the dividends markets where consumers [currently receive] dividend cheques."
Barclays is trialling the service with insurance provider CEGA. , Warwick Hoddy, CEGA's financial director said the 'send a payment' feature offers a "faster alternative to BACS payments", and meets increasing demand for interactions via mobile device.
The Pingit update comes after Barclays announced 1,700 job cuts in UK branches last week, as it focuses on delivery of services through technology such as mobile devices.
Sign up for CIO Asia eNewsletters.