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How Paym is helping the self-employed

How Paym is helping the self-employed

Category: Banking

Updated: 23/07/2015
First Published: 23/07/2015

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Have you heard of Paym? It's the mobile payments service that allows you to send money to friends, family and even small business owners using just a mobile phone number, with no need to worry about bank account numbers and sort codes. It's safe, secure and convenient, and not only that, but it seems to be helping self-employed workers, too.

Research from Paym has found that sole traders (such as cleaners, gardeners and decorators) are regularly left short-changed by their clients, with them typically being owed an average of £208 a month by customers who don't have the cash in hand to settle any bills. This means they're chasing 18% of their earned income each month, while those who have employees could be owed as much as £1,846.

It isn't a one-off problem, either, with 30% admitting that they had to stop supplying a customer due to consistent late payment. This is despite the fact that customers themselves have the best intentions – 86% of those surveyed agreed that paying small businesses on time is important, and 57% would prefer to pay by cash – but thanks to an increasing reliance on card payments, many simply don't have much cash available at any one time.

This could explain why 44% of customers had to dash to a cash machine to get enough money to pay for a tradesman's services – and 17% had to pay late – but happily, this could be a thing of the past. Paym gives customers the chance to pay these kinds of small bills using the tradesperson's mobile phone number, and now that it's available to 90% of current account holders, the self-employed hopefully won't be left short-changed on such a regular basis.

Craig Tillotson, managing director of Paym, commented:

"Window cleaners, gardeners and decorators are facing challenges from well-meaning customers who often don't have the cash on them to pay there and then. Paym is an easy alternative to accepting debit and credit cards, which we know many of these types of businesses resist because they find them expensive or inconvenient. It will be a massive help with time-poor customers.

"We're urging businesses and self-employed people to sign up today and to spread the word amongst their customers – it should help both parties avoid awkward situations or inconvenient trips to the bank."

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.

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