Security worries could hamper take-up of Paym P2P m-payments
28 April 2014 | 11407 views | 21
Nearly half of Brits have no intention of using the bank-backed Paym person-to-person mobile payments service, which launches tomorrow, according to a survey from Consumer Intelligence.
Built under the Payments Council umbrella, Paym - pronounced pay-em - will allow registered users to make person-to-person and person-to-business payments from within their bank's app by simply using a mobile phone number as a proxy, without the need to disclose their sort code and account number.
The service will go live tomorrow for customers of Bank of Scotland, Barclays, Cumberland Building Society, Halifax, HSBC, Lloyds Bank, Santander and TSB. More banks will follow later in the year.
Consumer Intelligence's survey of 2051 current account holders shows that 25% intend to use the service, rising to 39% among 18 to 34 year olds. Another 28% are undecided.
But 47% say they will definitely not use Paym. Of these, 71% cite security concerns as the reason for their reluctance. More than a third are worried about what would happen if they lost their mobile phone and 32% are concerned about paying the wrong person or the wrong amount. Forty-two percent simply prefer traditional payment methods.
David Black, Consumer Intelligence, says: "Consumers can take a while to warm to new banking developments but it's clear that the banking industry has a job to do educate many of them that mobile payments are a safe and consumer-friendly development."