CloudZync, a UK start-up, hopes to distance itself from other pretenders in the mobile payments market through its offering to retailers, which includes customised payments, loyalty and offers that can boost sales from consumers.

The company says its mobile wallet, which is called Zync Wallet, already has 280 merchants signed up to it.

However CloudZync is launching into a crowded marketplace with not just start-up rivals such as Droplet already active but also major players such as EE having recently launched its NFC-based Cash on Tap service.

These rivals all offer prepaid accounts from which users make payments at the point-of-sale.

Having downloaded a free app, Zync Wallet users open the wallet using a PIN in order to pay for transactions at the point-of-sale by choosing a ‘Make Payment’ option. The process automatically generates a QR code which the user presents to the sales assistant to scan. The assistant approves the user’s photo ID, and then payment goes through. Any reward points or discounts are then automatically added.

Consumer payments are taken from a prepaid account into which users transfer funds from their normal bank account.

The company is also pitching on price to retailers. It does not charge any set-up or administration fees for handling payments.

Retailers can pay for Zync Wallet in two ways, either pay as you go or a monthly subscription. Under the pay-as-you-go model, merchants pay per-transaction with the price dictated by volume. Prices start at five pence per transaction but can go as low as one pence.

Monthly subscriptions start at £40 (+VAT) and go up to £160 (+VAT) (there is also a more expensive, bespoke option). In return, merchants receive CloudZync credits which they can choose to spend across areas such as loyalty or voucher schemes. Merchants on the monthly subscription pay no fee for transactions. Similarly if a merchant provides cashback to a customer through Zync Wallet, then all its transactions are free.

Looking at rival services, co-founder and CTO Andrew Smith (pictured) said none took advantage fully of what mobile technology can offer, with most just offering another way to pay by card. “It’s this lack of true innovation in how consumers make mobile payments that has resulted in a lukewarm reception thus far.”

The Zync Wallet app is currently available for Windows Phone, and will soon be available on iOS in coming days. An Android version will be available soon.