A new secure way for consumers to send payments directly to each other's current accounts using just a mobile phone number will go live on Tuesday, 29 April, the Payments Council has announced.
Around 30 million people will be able to use Paym (pronounced "Pay Em") on its launch, and they can now start registering their phone number at paym.co.uk so they are able to use the service from day one.
Registering will link a consumer's' mobile number to their nominated current account, meaning that from 29 April they can receive money straight to that account through Paym.
Once the service is live, customers will be able to send money via Paym by using their participating bank or building society's mobile banking or payments app. While consumers have to be registered in order to receive money, they do not to send it. Many participating banks are about to contact customers to explain the new system and encourage them to use it.
The 30 million-plus customers of nine banks and building societies – Bank of Scotland, Barclays, Cumberland building society, Danske bank, Halifax, HSBC, Lloyds Bank, Santander and TSB – will be the first to be able to use the new service, which uses free banking apps.
Later in 2014, Clydesdale bank, First Direct, Isle of Man bank, NatWest, RBS International trading as NatWest, the Royal Bank of Scotland, and Yorkshire bank will be joining up, making Paym available to 40 million customers - 90% of the current account market.
Nationwide building society has confirmed that it intends to join in early 2015, while Metro Bank and Ulster bank head up the list of those who are finalising their launch plans.
The Payments Council said the new service would simplify age-old headaches such as settling up informal loans and IOUs with friends and family.
It claimed that UK consumers each owe an average of £255.81 a year in IOUs and other informal loans to each other. Adrian Kamellard, chief executive of the Payments Council said: "Our IOU research suggests that every adult in the UK is lending just under £5 per week to someone they know.
"Small sums like this soon add up so it's great that Paym will give people a new option of quickly and securely repaying someone – whether it's for lunch, a train ticket or just a cup of tea."
