The phone apps that let you go Dutch

A new EU rule means we will soon have a wider choice of smartphone payment apps allowing us to transfer money to friends and contacts.

A new EU rule due to become law in the next few months means we will have a wider choice of smartphone payment apps allowing us to transfer money to friends and contacts. In the US, both Facebook and Snapchat offer payment facilities to users, through a debit card linked to a US-based bank account. These services could soon be available in the UK owing to the EU's Revised Payment Services Directive (PSD2). This comes into effect in January 2018, and means banks will have to open up consumer accounts to businesses that can initiate transactions directly from the bank.

"Effectively, this means social media platforms in the UK will have greater opportunities to launch their own payment platform, as they enable their users to make transactions without the need of a wallet such as PayPal, nor the need of entering IBANs or other details," says Myles Dawson of global payments company Adyen. "Instead, consumers can simply ask Facebook or WhatsApp to connect to their bank account and use their fingerprint to initiate a payment request to split the dinner bill or to buy a new pair of shoes."

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Emma Lunn

Emma Lunn is a multi-award-winning journalist who specialises in personal finance and consumer issues. With more than 18 years’ experience in personal finance, Emma has covered topics including mortgages, first-time buyers, leasehold, banking, debt, budgeting, broadband, energy, pensions and investments. Emma’s one of the most prolific freelance personal finance journalists with a back catalogue of work in newspapers such as The Guardian, The Independent, The Daily Telegraph, the Mail on Sunday and the Mirror. As a freelancer she has also completed various in-house contracts at The Guardian, The Independent, Mortgage Solutions, Orange and Moneywise. 

She also writes regularly for specialist magazines and websites such as Property Hub, Mortgage Strategy and YourMoney.com. She’s particularly proud of her work writing about the leasehold sector and a Guardian front-page story about a dodgy landlord. She has a real passion for helping people learn about money – especially when many people are struggling to get by in today’s challenging economic climate – and prides herself on simplifying complex subjects.