Feeds

Egg customers pay by email

Cheque out

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

Egg customers can now digitally transfer money by email to any of the UK's 110 million bank accounts.

Egg Pay, which will go live later this week, is designed to be a more convenient way to pay small bills of up to £200 than cheques, which the online bank reckons are on their way out.

Cheque usage is down 34 per cent since 1990, and research from Egg and opinion pollsters MORI suggests a third of Britons are interested in digital payment services.

Using Egg Pay, money can be sent to anyone with an email address and a UK bank account; making it more convenient than posting a cheque (which might be lost in the post) or a trip down the bank. Unlike services like PayPal, there's no need for recipients to register for Egg Pay in order to receive their money. Only the Egg customers needs to register, and they don't need to know the recipient's bank details in order to make a transfer.

Here's how it works. An Egg customer would send an email to the recipient and after answering a personal security question set by the sender, the recipient can then accept the transaction.

The funds are then transferred from the customers debit card or Egg account by BACS and are credited to the recipient's account in 3-4 working days. A small interest payment is added on all deposits and payments awaiting collection.

An Egg spokeswoman was careful to point out how it had addressed the security implications in offering the service. The transaction itself is handled on a secure server, and Egg is advising its customers never to send the answer to the security question by email (this is something that needs to be agreed beforehand).

Egg is offering a guarantee to customers that it will refund any monies lost through no fault of their own.

An issue with this sort of scheme is that would-be recipients might be induced to give out their banking details on pirate sites. A spoofed email directing users to www.egg.com@anyoldnumber.net, might trap to unwary into visiting anyoldnumber.net thinking it was run by Egg, with obvious implications.

Egg assured us that it had thought of this and that it was on constant lookout for potential rogue sites. We've no evidence there are any such sites, but the possibility of such a straightforward scam is something that needs to be guarded against. ®

Related Stories

Egg buys Zebank
Egg makes first profit
Egg scrambles MS Passport reports
PayPal rules the P2P epayment waves

External Links

How to obscure a URL address

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.