Mobile users transfer more than £44m in one year using Paym service
Mobile phone owners have transferred more than £44m to others using a number-to-number transfer service over the last 12 months, it has been revealed.
The Paym service, which enables consumers to send money to current accounts using just a mobile phone number, handled the figure during its first year of being available to the public.
Since the launch of Paym, 2.25m people have registered to use the service, with an average transaction of £55 being sent mobile-to-mobile.
Friday and Saturday have become the most popular days for money transfers using the service, with suggestions that the trend is due to people paying back friends for money spent during nights out.
Although the service is not available at all banks or building societies, a dozen leading institutions have made it available to customers.
People who have accounts with the Bank of Scotland, Barclays, Clydesdale Bank, Cumberland Building Society, Danske Bank, First Direct, Halifax, HSBC, Lloyds Bank, Santander, TSB and Yorkshire Bank can all sign up for the service.
Total annual spend
Customers with the Isle of Man Bank, NatWest, Royal Bank of Scotland and Ulster Bank can receive Paym payments, but don’t yet have the option of sending money using the service.
A further three banks will be joining the service in the near future. Nationwide Building Society will make Paym available to customers from May, with Tesco Bank and Metro Bank due to join this year.
To activate the service, customers register their mobile number via their bank's website.
Money can then be sent using the bank or building society’s mobile app, with the recipient's details entered manually by the user or – if present – added from phone's address book .
The announcement came just two weeks after research claimed that mobile phone payments will account for one in every seven pounds spent by UK consumers within a decade.
The findings, part of research carried out on behalf of Barclays, added that mobile payments will contribute 13.7% of all over the counter sales taken by retailers.
Barclays added that total annual spend using mobile technology is likely to exceed £53bn by 2024.
The bank concluded that there would be a 452% rise in payments made via smartphones and tablets within 10 years.
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