Today 30million people across Britain will be eligible to use the new Paym banking scheme which allows you to transfer and receive money using just a mobile phone number.
Customers of Bank of Scotland, Barclays, Cumberland Building Society, Halifax, HSBC, Lloyds Bank, Santander, TSB and Danske Bank are all eligible to use it through their existing mobile phone banking app if they use one.
By the end of the year, a total of 40 million people will be able to access Paym, when Clydesdale Bank, first direct, Isle of Man Bank, NatWest, Royal Bank of Scotland and Yorkshire Bank sign up too.
VIDEO: Adrian Kamellard, chief executive of the Payments Council explains how Paym work
But how does it work exactly?
- Register your mobile phone number and the current account you would like your payments made into.
- People you know can then pay money directly into your current account using just your phone number - without a sort code or account number.
- Paym can be accessed using an updated version of current banking apps.
- When you are ready to transfer money, you will be asked to confirm the name of the recipient, check the amount and press send.
- The person making the payment will receive notification that the payment has been sent and the receiver will see the money in their account.
The new service is designed to make life easier as every current account in the country will eventually be linked up with a phone number, making payment transfers that much easier.
Have you tried Paym already? Share your experience below.