This week marked the launch of Paym, the mobile phone number based person-to-person payment platform backed by the Payments Council. To use Paym consumers register their mobile phone number with their bank and can then receive funds direct to their bank account via that number. Payments to other individuals are initiated via an existing mobile banking app.
Paym represents the first serious attempt to come up with a ubiquitous replacement for person-to-person cheques; much easier for consumers to make a payment to a mobile number than to a sort code and account number. As Paym forms part of existing mobile banking apps it should gain consumer traction quicker than if a new app was required.
The launch banks and building societies are Bank of Scotland, Barclays, Cumberland Building Society, Danske Bank, Halifax, HSBC, Lloyds, Santander and TSB. Later in the year Clydesdale Bank, First Direct, Isle of Man Bank, NatWest, Royal Bank of Scotland, Ulster Bank, and Yorkshire Bank will join, followed by Metro Bank and Nationwide Building Society later on. Presumably other small banks will join later making Paym ubiquitous for everyone who has a mobile number.
A handy tip – if your bank is late to the party and not one of the initial nine participants, you can get access to Paym by registering for Barclays Pingit. This will link the Pingit digital wallet to your bank account and allow you to send and receive funds via Paym.
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