A new mobile phone payments service, Paym, has been launched by the UK Payments Council this week. Paym allows UK customers to send money using their mobile phone number. The solution is integrated into customers’ existing mobile banking or payment apps as an additional way to pay.
The Paym service works by linking mobile phone numbers to bank accounts - enabling users to transfer and receive money without going to a bank or ATM. Paym allows users to send up to £250 a day with some banks allowing a slightly higher daily limit.
The new money transfer service is available to customers of Bank of Scotland, Barclays, Cumberland Building Society, Danske Bank, Halifax, HSBC, Lloyds Bank, Santander and TSB. Customers from other banks must wait to the end of the year as banks work on the introduction of the service. By the end of the 2014, the service will be available to over 40 million UK bank account holders.
In order to send money, consumers can use an existing banking payments app to enter the mobile number. Users then confirm the name of the recipient and are shown a record to verify the right mobile number was used.
Adrian Kamellard, chief executive of the Payments Council said that paying someone back has now got easier for millions of people living in the UK. 'Paym is another safe and easy option to pay friends and family - you probably already know all your friends and family’s mobile numbers, so why not use them if you need to send them some money?' Jemma Smith from the Council said it was the first time the UK had a system with the potential to 'link every account to a mobile number'.
Neil Aitken of the UK Payments Council told Mobile: 'The most up-to-date figures we have for registrations is that more than 750,000 people registered within a month of the service going live.' The company will publish a further update on this later in the year.