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The amount of money sent via Paym has accelerated in the past six months, with the number of transactions increasing by 80% compared with the previous six months.
Figures released in February this year showed the system had been used to send more than £26m in its first eight months of operation to the beginning of 2015. But since then, the amount sent via Paym has reached a total of £70m, with 774,628 transactions in the first half of this year out of a total of 1.25 million.
Paym, which was set up by finance regulator the Payments Council in January 2013 and was launched in April 2014, enables transfers between all UK bank accounts using just mobile numbers.
The most popular use of Paym is for people paying their share of lunch and dinner bills, with 20% saying they use it for this purpose, while 19% use it to pay for a small meal, such as a sandwich. Other common uses are to pay for cinema, theatre or concert tickets (16%), pay a share of petrol money (15%), and for group presents (15%).
As of the end of June 2015, 2.6 million people have registered for Paym with one of the 17 banks and building societies that belong to the scheme.
“Paym continues to grow and it is interesting to see we are using it more for weekday money management as well as Saturday socialising,” said Craig Tillotson, managing director of Paym. “We believe the sheer simplicity of using someone’s mobile number to pay them back means Paym will go from strength to strength.
Read more about Paym
- In March 2014, the Payments Council forecast one billion payments would be made to people using mobile phone numbers through Paym by the end of 2018.
- Paym will allow consumers to send and receive payments directly to a current account with a mobile number at the same speed as other money transfer methods.
- Mobile payments are an ever-increasing medium, with mobile retail accounting for 32% of online sales between November 2013 and January 2014.
“After all, whether it’s a friend or a family member, we already know their mobile number, so it’s easy to settle up with no sort code, no account number and no cash.”
About 40 million customers can register for Paym, with nine out of 10 current accounts covered. Customers of Bank of Scotland, Barclays, Clydesdale Bank, Cumberland Building Society, Danske Bank, First Direct, Halifax, HSBC, Isle of Man Bank, Lloyds Bank, Nationwide Building Society, NatWest, Santander, TSB, Ulster Bank and Yorkshire Bank are able to send and receive Paym payments. RBS customers can receive Paym payments and will be able to send them soon.