Due to launch later this year, Paym looks set to change how UK public pays for goods
Getting mobile payments moving inside the UK has been a bit of a struggle. NFC cards have been adopted, but haven’t taken off massively, and various mobile payments platforms either see a lack of merchant adoption, or consumers aren’t clambering over one another to use them. Zapp put forward a convincing proposition when it partnered with UK banks, but now Paym seems set to grasp the mainstream.
Paym – pronounced Pay Em – will allow users to transfer money between bank accounts using their phone and knowing the recipients phone number. This means that the likes of sort codes, account numbers and emails won’t be needed to make the transfer, but security is in place in the form of a passcode.
Paym would link a mobile number to a bank account, allowing for instant transfer of money with ease.
The benefits, at the moment, certainly seem far more peer-to-peer than as a tangible way to make a payment for a product or service – as Zapp seems to be offering. However, by just having such a method in place, it stands to reason that more users will make the most of the service.
Speaking to the BBC, Adrian Kamellard, chief executive of the Payments Council, said “the service has the potential to link up every bank account in the country with a mobile number – millions of people will be able to use it this year and we look forward to expanding Paym even further, so everyone can benefit from this easy, secure new way to pay.”
So far Bank of Scotland, Barclays, Cumberland Building Society, Danske Bank, Halifax, HSBC, Lloyds Bank, Santander and TSB Bank have said they will offer the system to their customers. Later in the year Clydesdale Bank, First Direct, Isle of Man Bank, NatWest, RBS International, Royal Bank of Scotland and Yorkshire Bank will offer it up too. That means by the end of the year, 90 per cent of all current account holders in the UK can make the most of Paym’s services.
Nationwide will join the roster in 2015, and Metro Bank and Ulster bank are apparently planning to sign up to the service too.
As you can imagine, that sets them up rather perfectly for making the most out of mobile banking – and in turn, opening them up to the idea of making more mobile payments.
What are your thoughts on Paym? A good thing to happen to the mobile payments and banking industry?