A couple of weeks back, I had written about Paym – a new service is all set to enable users of Britain's nine biggest banks to send money to each other via their mobile phones. It was announced that Paym would go live on April 29th meaning users may never have to ask anyone for their current account number or sort code by the end of this month.
- Registrations began on 2nd April 2014, for the 30 Million users of Barclays, Bank of Scotland, Cumberland Building Society, Halifax, HSBC, Lloyds Bank, Santander and TSB Bank. Danske Bank users however, can register from April 25th.
- Metro Bank and Ulster bank are two others that are finalizing their plans to join.
- These will be joined by First Direct, Clydesdale Bank, Isle of Man Bank, Yorkshire Bank and NatWest/RBS in the latter half of 2014.
- Nationwide building society confirmed its intention to join the party – early in 2015.
According to the Payments Council, UK consumers each owe an average of £255.81 a year in IOUs and other informal loans to each other. Our IOU research suggests that every adult in the UK is lending just under £5 per week to someone they know, said Payments Council Chief Executive, Adrian Kamellard. 'Small sums like this soon add up, so it's great that Paym will give people a new option of quickly and securely paying someone back - whether it's for lunch, a train ticket or just a cup of tea, he added.
How will it work?
- Before you use Paym, register your mobile number and the current account you’d like payments made into.
- Your friends will then be able to pay directly into your current account using just your mobile number – no sort codes or account numbers.
- Using your existing mobile banking or payments app, select a friend’s number using your contacts or enter a mobile number manually.
- You’ll be asked to confirm the name of the recipient. Once you’re happy, check the amount and press send.
- You will then receive confirmation that your payment has been sent.
- The money will appear in your account.
- You will be able to send up to £250 a day, although you may be offered a higher daily limit.
- You don’t need a smartphone to receive payments but you will still need to register your mobile number.
- On the security front the company says, that your details are held securely and are fully protected by data protection laws. The only information stored will be the details needed to send or receive payments.
What happens if I lose my Mobile Device?
- Their website says that it is not possible to send a payment using Paym without your app’s password or security code.
- However it is important that you still contact your bank or building society immediately to report a lost or stolen phone.
- Your bank or building society will be able to suspend the service and reset your security settings.
- You get the same legal protection with Paym that is already applied to your other current account, online and mobile payment services.
- You are covered providing you didn’t act fraudulently or without reasonable care, they say.