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More banks set to join the Paym family

More banks set to join the Paym family

Category: Banking

Updated: 14/10/2014
First Published: 14/10/2014

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 It is now over 6 months old so the content may be out of date.

Sending a payment can sometimes be a faff, especially when you have to key in lengthy account numbers and sort codes. However, from today, all first direct customers will be able to sign up with mobile banking service Paym, with six more banks joining later this year. This means that paying family and friends could soon be a quick and painless process for even more consumers.

What is Paym and who's involved?

Paym is a service that is integrated into your existing provider's mobile banking or payment app. It provides an alternative method of paying by linking your current account with your mobile phone number, making it possible for you to send and receive payments using just your phone number.

You don't need a smartphone to receive funds in this way, only to send them, and you can also still get payments if your phone is turned off or out of coverage. Using your existing mobile banking app to make payments will also ensure that the payments have the same level of security as normal.

Paym was launched in April this year and already has 1,450,000 customers enrolled. Bank of Scotland, Barclays, Cumberland Building Society, Danske Bank, Halifax, HSBC, Lloyds Bank, Santander, TSB and first direct all now offer the Paym service, but later this year six more brands will join the Paym club (Clydesdale and Yorkshire Banks, Isle of Man Bank, NatWest, Royal Bank of Scotland and Ulster Bank). This will open up the Paym service to more than 40 million customers – over nine in 10 current accounts - by the end of the year.

Other providers are also drawing up plans to join the scheme, with Ipagoo, Metro Bank, Nationwide Building Society and Tesco Bank all planning to join in 2015.

Jemma Smith, director of communications and education at the Payments Council, welcomed the expansion of the Paym service: "The service has the potential to link up every bank account in the country with a mobile number – it's a great example of industry-wide collaboration that delivers an easy to use, secure new way to pay for customers."

How to use Paym

If your bank or building society is a participant (or soon will be) and you're convinced of the benefits of Paym, now is the time to jump on the bandwagon!

To make use of this quick and easy service, you simply need to register your mobile phone number with your participating bank, building society or card provider. You then nominate the current account you would like your number to be linked to, and away you go!

To make a payment, access your usual mobile banking app, and then key in the mobile number of the person you are transferring funds to. The app will ask you to confirm the name of the recipient so that you are sure the funds going to the right person. Once that's done, the payment is sent and you can sit back and relax.

Payments can be sent to anyone who has signed up to Paym, even if they are registered with a different bank or provider. Typically, up to £250 can be sent through this service per day, although some providers have a higher limit.

So, if you are fed up with hunting around for sort codes and account details, why not join the 1.45 million customers who are already taking advantage of this new banking method and sign up to Paym today?

What next?

Refresh your everyday banking with a new current account. Check out our top deals.

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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