The new mobile payments service, known as Paym, is set to launch tomorrow, and if recent figures are anything to go by it could be fairly well received. A survey from Consumer Intelligence has revealed that one in four banking customers (25%) intend to use the service, a figure which rises to 38% for those aged 18-34.
The service will revolutionise the mobile payments market, allowing customers from nine different banking institutions to make payments to each other using just a mobile phone number – and more banks are set to join in the near future.
However, given the convenience, the 25% figure may seem a little small. A further 28% of survey respondents are undecided about whether they'll use the service or not while 47% have said that they definitely won't, with fears over security being the defining reason (a concern for 71% of respondents).
These security worries are perhaps surprising given the way the majority of banking customers access their accounts – 36% regularly use mobile banking apps while 76% use the internet to conduct their online banking needs, so fears over this new service could be largely unfounded. Paym will be directly integrated into the user's current mobile banking app, and as such will be no less secure than any other form of mobile banking.
All the usual security features will apply with providers being required to sign up to a code of conduct, including a minimum standard of mobile number verification and password activation. It's hoped that any fears will be allayed and more people will sign up as the scheme becomes more well-known and communication improves, with the banking industry as a whole needing to educate their customers to let them know that mobile payments are a safe, secure and consumer-focused solution.
For those already willing to give it a go, it couldn't be easier to get started. All you have to do is register through your banking provider, usually via your current mobile banking app, and link your current account to your mobile phone number. Once the service launches you'll be able to make or receive payments straight away, giving you a quick and easy way to send payments to anyone you wish.
If you're not a customer of one of the providers already signed up – currently Bank of Scotland, Barclays, Cumberland Building Society, Danske Bank, Halifax, HSBC, Lloyds Bank, Santander and TSB – there's no need to fear, as more are set to join in the near-future. Clydesdale Bank, first direct, Isle of Man Bank, NatWest, RBS International, The Royal Bank of Scotland, Ulster Bank and Yorkshire Bank will join later this year and Nationwide will follow suit in early 2015, and Metro Bank is finalising its plans too.
Compare current accounts
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.