More than one million people have registered with their bank or building society for Paym, the UK bank-backed mobile number payment service that was launched in late April.
Million users is encouraging. Is spend £65m (heading) or £6.5m (article)?
Ooops! Headline typo corrected, wrists (my own) slapped.
That's a lot. Factoring in a spike for novelty, a dip for the fact not all FIs are on board yet, this really does seem strong. My bank doesn't offer yet, but have heard some banks done a great job of making the journey simple, others have completely messed
it up. As other other FIs come on board, and consumers become happier using their phones, the logical next question is "why can't I do this in a store?"
Of course, those bad journey offending banks will slow things down a tad. I guess PayM didn't mandate certain rules on how the journey should work.
A fantastic result for PayM and something the outgoing Adrian Kamellard can be pleased to have ushered into life successfully under his watch. As one of the first big initatives driven by the payments council and clearly aimed at the peer to peer market
it represents a big step forward for multi-bank-led innovation in payments.
Congratulations must also go to Cumberland Building Society, the tenth largest building society in the UK for boldly racing ahead of its larger peers to participate. This also shows that building societies can now offer just as many convenient features as
banks competing credibly for consumer business on current accounts not just savings and mortgages.
Given the fact that PayM is activated from within the mobile banking app, it has the added advantage for participating FIs of making continual brand impressions with retail customers and having a valued presence on the customer's smartphone. Competition
to have a presence in the customer's wallet is no longer the key to trust and loyalty but a presence on a smartphone and a role in informal, cash-equivalent transactions such as splitting a bill or paying for an item are new places for FIs to feature and compete
for mindshare with challengers like PayPal and the raft of mobile wallets appearing now.
Call me cynical but is it really a great result? It's £65,000 day on average. How many people have used it more than once and how many have used it to send money to more than one person.. and can they extract the Pingit related transaction? That would be
for more informative.
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© Finextra Research 2015