How it works in their words:
- “To receive money through Paym, you first need to register your mobile number and the current account you’d like payments made into with your participating bank or building society.
- Your friends will then be able to pay directly into your current account using just your mobile number – no sort codes or account numbers. You don’t need a smartphone to receive payments and you still receive the money if your phone is off or out of coverage.
- To send money using Paym, use your existing mobile banking or payments app to select a friend’s number from your contacts or enter a mobile number manually. It’s possible to send without registering your mobile number for Paym.
- You’ll be asked to confirm the name of the recipient. Once you’re happy, check the amount and press send. If the person you’re sending money to hasn’t yet registered, you won’t be able to send them a payment using Paym. You could contact them to suggest they register, or use an alternative form of payment.
- You’ll receive confirmation that your payment has been sent. And because you’ll be using your existing mobile banking or payments app it couldn’t be easier, it’s just as secure and most payments are processed almost immediately.
- You can send up to £250 a day through Paym, although some participating banks and building societies offer a higher daily limit.
- Visit paym.co.uk to find out how to register or go to your bank or building society’s website for more information.”
You need to have the mobile banking / payments app from, and an account with, one of the current providers ie:
- Bank of Scotland
- Cumberland Building Society
- Danske Bank
- Lloyds Bank
(links are to the bank’s/societies system – HSBC gets the prize for the shortest link!)
Allegedly later 2014 joiners will be Clydesdale Bank, first direct, Isle of Man Bank, NatWest, RBS International trading as NatWest, The Royal Bank of Scotland, Ulster Bank and Yorkshire Bank. The Nationwide Building Society is planning to join in 2015 and Metro Bank is looking at it!
Some of the payment systems of the individual banks have been around for quite a while eg Barclays Pingit was introduced in February 2012.
The Payments Council reckon that the 9 carriers, so as to speak, enable about 30 million people to use the system from today!
Another purple patch has been provided by Trajectory, the futures partnership, who in their research for Paym discovered that the average IOU stands at a massive £21 between friends and family.
Top of the pile with a massive £3.7 billion outstanding are parent to children loans BUT encouragingly there is £1.7 billion going the other way!
Security will obviously be an issue and the FAQ’s provided are:
“Is Paym safe & secure?
- Yes. The service has been developed by the participating UK banks and building societies to meet with their high security levels.
Is my personal information safe?
- Yes, 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 my mobile is lost or stolen?
- It isn’t possible to send a payment using Paym without your app’s password or security code, but you should 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.”
In general there’s a daily transfer limit of £250 but some providers may vary this on request.
Sounds good, although the name encourages us to a derogatory pronunciation of Pay – ummmm rather than the no doubt preferred Pay – em!
The twitter handle is @paymnow