Bank Payments Made Easier: Use Your Mobile!
The Payments Council, who is responsible for making sure payment services work in the UK, has announced that bank customers will be able to make payments directly into bank accounts using their mobile phone from the end of this month, in a new scheme called ‘Paym’ (pronounced “Pay Em”).
Customers who have a banking app on their phone won’t need to register for the payment system, but those who don’t can register right now.
What this payment system will mean for the customer is that they will be able to transfer money into the account of someone in their phone contacts. As long as both them and their recipient are registered with Paym, money can be transferred straight way, almost immediately appearing in the recipient account, and all of this can be done without having to remember sort codes or account numbers, or which bank you have to visit. You will also be able to check the name of the person you are sending money to and confirm before it gets sent, so you know the money is being sent to the right person.
When the scheme goes live on 29 April, around 30 million people will be able to transfer money using their mobile phone, without having the bother of finding a computer or bank to make the transfer.
A number of banks, including Barclays, Halifax and HSBC, have all signed up to the scheme so far, which means that customers who haven’t already will be able to link their bank accounts to their phones. Other banks, such as RBS and Natwest, will be starting up later in the year, while a few others won’t be joining until next year.
The Payments Council’s Neil Aitken explained that the levels of security that currently apply to banking apps will also be in effect with Paym so transactions won’t be possible without entering your app passcode. “The only thing that people would be able to do, if they got your mobile number, is pay you,” he said.
Customers will even be able to set an account up so that they can only receive money via Paym, so they won’t have to worry about money going out.
According to the Payments Council’s chief executive, Adrian Kamellard, previous research has shown that the average person will lend out just under a fiver to someone they know a week. “Small sums like this soon add up, so it is great that Paym will give people a new option of quickly and securely paying someone back,” he said, “whether it’s for lunch, a train ticket or just a cup of tea.”
If you want more information of the Paym scheme, then visit your own bank’s website to see when they’re getting involved.