Barclays’ (NYSE:BCS) hopes to outshine its peers in technology and recently launched Pingit mobile app for person-to-person money transfer now boasts of half a million downloads. The British bank offered Pingit to its customers this February, and followed up in April by allowing anyone in the U.K. with a bank account and a mobile phone to securely transfer money to other individuals for free.   Pingit’s increasing popularity is actually forcing competitors Royal Bank of Scotland (NYSE:RBS) and Lloyds (NYSE:LYG) to come up with similar offerings.
Barclays is known for coming up with technology-backed ideas to make banking services more easily accessible for customers. The bank is the pioneer in contactless payment solutions and last year also launched the first contactless mobile payments service.
But all of these investments in services that are, eventually, free for the customer raises the obvious question – how does that help Barclays make any money? Simple. These services are aimed at the current, tech-savvy generation who are quick to adopt them. This directly results in an increase in Barclays’ customer base, allowing the bank to make money through the various other banking services and products it offers. A win-win situation for the bank and its customers.
We maintain a $15 price estimate for Barclays’ stock, which is around 15% above its current market price.Notes:
- Barclays launches first service for sending money by mobile phone number, Barclays Press Releases, Feb 16 2012 [↩]
- Barclays Pingit now available to all, Barclays Press Releases, Apr 12 2012 [↩]