Paying back IOUs to friends and family just got easier, following the launch today (29th April) of Paym, the new secure way to pay using just a mobile number across nine banks and building societies.
Paym is now available to more than 30 million people across the UK - customers of Bank of Scotland, Barclays, Cumberland Building Society, Danske Bank, Halifax, HSBC, Lloyds Bank, Santander and TSB are able to send and receive Paym payments. The service will expand further later in the year, becoming available on more than nine out ten current accounts, covering in excess of 40 million customers.
How to use Paym
• To receive money through Paym, you first need to register your mobile number and the current account you'd like payments made into with your participating bank or building society.
• Your friends will then be able to pay directly into your current account using just your mobile number - no sort codes or account numbers. You don't need a smartphone to receive payments and you still receive the money if your phone is off or out of coverage.
• To send money using Paym, use your existing mobile banking or payments app to select a friend's number from your contacts or enter a mobile number manually. It's possible to send without registering your mobile number for Paym.
• You'll be asked to confirm the name of the recipient. Once you're happy, check the amount and press send. If the person you're sending money to hasn't yet registered, you won't be able to send them a payment using Paym. You could contact them to suggest they register, or use an alternative form of payment.
• You'll receive confirmation that your payment has been sent. And because you'll be using your existing mobile banking or payments app it couldn't be easier, it's just as secure and most payments are processed almost immediately.
• You can send up to £250 a day through Paym, although some participating banks and building societies offer a higher daily limit.
• Visit paym.co.uk to find out how to register or go to your bank or building society's website for more information.
Adrian Kamellard, Chief Executive of the Payments Council said: "Paying someone back just got easier for millions of people. Paym is another safe and easy option to pay friends and family - after all, you probably already know all your friends and family's mobile numbers, so why not use them if you need to send them some money?"
Research carried out to mark the launch of Paym found that almost two thirds of people (62%) agree that being able to borrow money is a sign of true friendship.
Younger consumers are the most relaxed about lending and borrowing with 37% of 18 to 24-year-olds happy to lend because they like treating people to things and 74% are happy to be able to help. But they also have an expectation in return with 46% lending because it means they can ask for the favour to be returned at some point.
IOUs from parents to children 'the bank of mum and dad' amount to £3.7billion each year but money going the other way 'the bank for mum and dad' is also significant, amounting to £1.6billion each year.
Paul Flatters, Chief Executive of Trajectory Partnership a consumer trends forecasting consultancy, that conducted the research, said: "The flow of money down the generations as parents help out their children is well understood, but our research reveals that family IOUs cut both ways."