Sending money to friends has become as easy as sending a text message, thanks to a new mobile payment service.
Paym, which launches today, allows users to transfer funds using only the recipient’s mobile phone number.
It is currently available to customers of Bank of Scotland, Barclays, Cumberland Building Society, Halifax, HSBC, Lloyds Bank, Santander, TSB and Danske Bank.
The scheme is being overseen by the Payments Council and will be linked with an estimated nine out of 10 current accounts by the end of the year, allowing 40 million customers to move money without access to the recipient’s bank details.
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Paym to revolutionise mobile payments?
Customers have to register their bank account with Paym (pronounced ‘pay em’) before they are able to receive funds using this system. More than 300,000 people pre-registered their accounts with the service before its launch today.
It’s possible to send money without completing the registration process, as long as your bank is involved with the scheme.
Clydesdale Bank, First Direct, Isle of Man Bank, NatWest, Royal Bank of Scotland and Yorkshire Bank will allow customers to send money using Paym by the end of the year.
Following the product’s launch, Adrian Kamellard, chief executive of the Payments Council, said: ‘Paying someone back just got easier for millions of people. Paym is another safe and easy option to pay friends and family.’
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Mobile payment innovations set to continue
The success of Barclays’ app Pingit, which has been downloaded by more than 2.5 million people since its launch in 2012, suggests that consumers are becoming more trusting of mobile payments.
Zapp, a mobile payment scheme which allows consumers to make faster payments to retailers, is set to launch later this year and could encourage even more people to try paying for goods with their smartphone.
The Payments Council is also working to make it easier for customers to retrieve money accidentally sent to the wrong account.
Last week, it launched a voluntary code encouraging banks and building societies to give faster assistance to those who alert them about such scenarios.