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New service allows payments via mobile number


Account holders will now be able to pay both friends and traders using only their mobile phone numbers from 29th April, it has been announced.

The Payments Council has confirmed that consumers will no longer need to exchange bank details, so long as both parties have registered for the free service.

Advance registration for Paym – pronounced “Pay Em” – opens from Wednesday 2nd April.

The scheme has been met with criticism with fears of potential fraud, but Neil Aitken from the Payments Council silenced these claims by confirming the system will be integrated with already existing banking apps.

“The only thing that people will be able to do if they have got your mobile number is pay you”, he stated.

Customers will still need to log onto their online accounts, meaning the service will still be password protected.

The current security in place for online banking systems will remain, with no payments being processed without confirmation of the app’s password.

Those who would rather just receive money instead of paying it will still have access to the system, regardless of whether they are an online banking or smartphone user.

How will Paym work?

1. Using the same password, customers will login into their usual mobile banking app in order to process a payment.

2. With either a mobile number or by simply using existing contact information, customers will select the recipient of the payment.

3. Once this is confirmed, the amount being transferred is checked.

4. At this point a reference can be added to the payment, for example “holiday money”.

5. Customers then press send, and confirmation message is left with the payee.

Those who hold bank accounts with Bank of Scotland, Barclays, Cumberland Building Society, Halifax, HSBC, Lloyds, Santander and TSB can now register their mobile numbers with the service.

Natwest, RBS and First Direct are set to join the scheme in the coming months.

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