BankTech

Paym Launches Officially in the UK, Customers Cite Risk and Security Concerns

A couple of weeks back, we 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. On 29th April 2014, the Paym service was officially launched for use by 30 Mn people in the UK.

Registrations began on 2nd April 2014, for the 30 Million users of Barclays, Bank of Scotland, Cumberland Building Society, Halifax, HSBCLloyds Bank, Santander and TSB Bank. Danske Bank users however, can register from April 25th. An total of 40 Mn people are estimated to be able to access Paym, when Clydesdale Bank, first direct, Isle of Man Bank, NatWest, Royal Bank of Scotland and Yorkshire Bank join up.

https://www.youtube.com/watch?v=UktbaTmh6Os

  • Customers can utilize the Paym service to send up to £250 per day.
  • This can be done using just a mobile number, without requiring a sort code and account number.
  • Non-smartphone users can register to receive payments, however a smart phone app is required to send money.

25% of bank customers said they expected to use Paym, rising to 39% among those aged 18 to 34 – according to Consumer Intelligence. However, almost 50% said they definitely would not use the service, with most worried about security and the risk of money going missing.

How does 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.

Chiraag Patel

Chiraag Patel is a Senior Reporting Analyst and the Editor of Bitcoin and Virtual Currency channels at Lets Talk Payments. He is an engineer with deep interest in MMORPG, Virtual Banking, Game Currency and Virtual Cash. Chiraag enjoys Reading& Blogging with focus on New Innovation, Technology & Startups in the Payments Space.

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