Paym mobile payment system gathers momentum as more banks sign up

Six more banks join the Payments Council’s Paym scheme for consumers to complete transactions using a mobile phone

Six more banks have joined the Payments Council’s Paym scheme which allows consumers to complete transactions with a mobile phone.

Clydesdale Bank, Isle of Man Bank, NatWest, Royal Bank of Scotland, Ulster Bank and Yorkshire Bank have now joined and customers of those banks can sign up to the Paym scheme.

Isle of Man Bank, NatWest, RBS and Ulster Bank customers can receive Paym payments now, and will be able to send them in mid-2015.

Clydesdale Bank and Yorkshire Bank get the full service and can send and receive Paym payments now.

Bank of Scotland, Barclays, Cumberland Building Society, Danske Bank, first direct, Halifax, HSBC, Lloyds Bank, Santander and TSB are already offering Paym – which can link up every current account in the country, regardless of the bank, with just a mobile phone number.

Since April 2014 1.6 million customers have used the service and over £15m has been sent. Ipagoo, Metro Bank, Nationwide Building Society and Tesco Bank are all planning to join soon.

“Paying back a friend using their mobile number is as easy as sending a text, so it’s no surprise that 1.6 million people have signed up for Paym since it launched in April,” said Maurice Cleaves, interim chief executive of the Payments Council.

"More banks joining today is great news for customers and we look forward to the service continuing to grow through 2015 and beyond.” 

Although many banks are already members of the Paym initiative, some offer their own mobile payments system, and there are other services available to allow consumers to pay using alternative methods. For example, Barclays offers the Pingit money-sharing application, and Apple recently introduced the Apple Pay mobile wallet.

A report from the Payments Council predicts that, by 2018, one billion transactions will have been made using Paym. The report predicts that 63% of consumers will use Paym to ask friends and family to pay them back for items such as dinner or cinema tickets.

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