New ways to pay: Nearly 2m people sign up to mobile payments service Paym, lets you transfer money with a text message Published-Jan 31, 2015
More than 1.8million people have signed up to a scheme that allows them to receive money on their UK bank account by using just their mobile phone number, new data has showed.

Mobile payments service Paym, which was launched last April, saw a total of 1,851,612 mobile numbers registered on its database by the end of December.

Nearly half of all transactions take place on Friday, Saturday or Sunday, with younger people being the biggest users of the service, according to figures released by Paym.

A survey of 2,000 Paym users shows that on average, people transferred £53.65 each, for a total of £26million of payments made through the service last year.

Paym, pronounced as "pay em", allows people to pay up to £250 a day straight into another person's bank account in minutes simply by entering their mobile phone number, without having to exchange bank account details.

To send payments through Paym, customers only need to check if their bank or building society offer the service - if they do, the service is integrated into the user's existing mobile banking app.

Someone making a payment either selects the contact they wish to pay from their mobile phone or keys in their mobile phone number. They are then asked to check the recipient's name and the amount before the payment is sent.

To receive money, customers need to register their mobile phone number alongside a nominated current account after they have checked that their bank takes part in the scheme.

Customers can't register more than one account to a mobile number, but joint account holders can both register their mobiles to the same account.

Currently, more than 40million customers are able to register for Paym - representing more than nine out to 10 current accounts.

Sixteen UK banks and building societies now offer the service.

Customers of Bank of Scotland, Barclays, Clydesdale Bank, Cumberland Building Society, Danske Bank, First Direct, Halifax, HSBC, Lloyds Bank, Santander, TSB and Yorkshire Bank can send and receive payments.

Isle of Man Bank, NatWest, RBS and Ulster Bank customers are able to receive payments and will also be able to send them via Paym by the middle of 2015.

Metro Bank, Nationwide Building Society and Tesco Bank plan to join from 2015 onwards.

Craig Tillotson, managing director of Paym, said: 'It's still early days for the service, but people seem to find Paym most useful at the weekend.'

Research also shows that the most common reason to use Paym is to pay back a friend, followed by paying a partner and paying parents.

People aged 64 and over make up just 4 per cent of Paym users, while 16 to 34 years-olds are the biggest users at 71 per cent, Paym said.

Although most people are using Paym to make small payments, like reimbursing family or friends for meals or cinema tickets, they are be able to transfer at least £250 a day under the scheme. Caps above this amount are decided by individual banks and building societies.

Using a mobile phone to make payments has become increasingly popular. Barclays launched a mobile payments scheme called Pingit, which is available to customers and non-customers, in 2012.

Since its launch, Pingit has had 3.7million downloads and to date £918million has been sent using the scheme.

Another mobile payment scheme is Zapp, which is set to go live this year, allows shoppers to pay for goods and services online or in shops as well as council tax and utility bills with their smartphone, using an app linked to their bank account.

It has been introduced and developed by VocaLink, the company behind Link cash machines.

Sourced By: mailonsunday.co.uk

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