The new mobile payment service, known as Paym (pronounced pay 'em, in case you were wondering), is set to launch in less than a week's time. So just what is Paym, how does it work and what do you need to do to be prepared? Well, here's a quick overview to keep you in the know…
What is Paym?
Paym is a new mobile payments service developed by The Payments Council, and it's been designed to ensure individuals can transfer money between accounts – and each other – using just a mobile phone number.
Although similar services already exist this will be the first one that incorporates several different banking institutions, so you'll be able to make the payment even if your friend is with a different provider. It's set to be launched on 29 April and, essentially, means you'll never have to ask anyone for their account number and sort code in order to transfer money – provided they've signed up to the system too.
How will it work?
The new service will be integrated directly into your current banking app, so the whole process is incredibly simple. If you're sending a payment to someone else you'll simply need to enter your friend's mobile number (either manually or from your phone's contact list) and will usually be asked to confirm the name or provide a reference/password, then just check the amount and press send.
Voila! Your friend will receive the cash directly into their account, and you'll get confirmation that the payment went through. It's the same process when you're the receiver as well, so all you'll need to do is sit back and wait for the money to appear in your bank account. It'll have the same security standards as existing payment services too and because you'll be making payments via an app there'll be the usual password requirements, so this form of payment won't be any less secure than any other mobile banking process.
What do I need to do?
All you need to do is register through your current internet or mobile banking service. The registration process will be slightly different according to your specific bank, but in a nutshell it simply involves linking your current account to your mobile phone number – as long as you're already signed up for online/mobile banking and have a phone number registered with your bank, it couldn't be simpler.
From then on you're good to go! You're free to register now and will be able to use the service as soon as it launches, but of course, you can always register afterwards if necessary. As long as the recipient is registered with the service too you'll be able to start making payments as soon as it launches, with the whole system being designed to offer a simple, secure way to make payments to anyone you wish, from your friends and family to the plumber you owe money to.
Of course, you'll only be able to use the Paym service if your particular bank or building society is getting involved. Currently there are nine participating institutions – Bank of Scotland, Barclays, Cumberland Building Society, Danske Bank, Halifax, HSBC, Lloyds Bank, Santander and TSB – so customers of these banks will be able to use the service straight away.
Several others (Clydesdale Bank, first direct, Isle of Man Bank, NatWest, RBS International trading as NatWest, The Royal Bank of Scotland, Ulster Bank and Yorkshire Bank) have committed to join later in the year and Nationwide is set to follow suit in early 2015, while Metro Bank is in the process of finalising its plans to join as well.
By the end of next year the majority of banking customers should be able to use the service making it the most far-ranging project of its kind, and with the launch date being just a few days away you haven't got long to wait to enjoy the convenience. So what are you waiting for? Get registered!
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