Customers of First Direct are now able to send payments to friends and family via messaging services such as WhatsApp or Facebook messenger, following the launch of its new payment service ‘fdpay’. First Direct collaborated with Israeli fintech ‘PayKey’ to create the new service – a UK banking first.
Payments can be sent without leaving the messaging the platform, by activating the fdpay keyboard after registering, and selecting the fdpay icon within the messaging app. Payment details are then entered, authenticated and sent using pre-existing Paym system.
Up to £350 per day can be sent via the fdpay service, and while the recipient is not required to be a First Direct customer, they are required to be registered to use the Paym service.
RFi Group data demonstrates that within the last 12 months, 1 in 20 consumers have used Facebook messenger to make a payment, with this increasing to almost 1 in 10 when looking at Millennials. However, monthly use of this method is still relatively low, with less than 1 in 20 consumers using Facebook Messenger to make a payment in a typical month. Considering this, First Direct’s new service could potentially have a positive impact on the overall usage by enabling a streamlined payment process without needing multiple apps.
Source: 18H2 UK Payments & Innovation council