Over one million people are now using mobile payments service Paym, with £6.5 million sent and received since its launch in April.
Paym is a Payments Council-backed initiative which allows UK bank customers to send and receive money via their smartphones. It works by connecting a customer’s mobile number to their current account, and allows transfers of up to £250 a day without requiring the recipient’s account number or sort code.
The initiative, which relies on the Faster Payments service, is supported by services firm CGI, which lead integration of underlying infrastructure.
“It’s hugely encouraging that one million people have chosen to register for Paym already, but this milestone only marks the start of growth in the service,” said Jemma Smith, director of communications and education at the Payments Council.
“The next big step forward is more banks and building societies joining before the end of the year, and as a result we look forward to millions more people signing up and using the service.”
The service is currently available to 30 million customers of banks including: Bank of Scotland, Barclays, Cumberland Building Society, Danske Bank, Halifax, HSBC, Lloyds Bank, Santander and TSB.
However, customers of Natwest and Royal Bank of Scotland will have to wait until at least the end of 2014 to access the service. RBS is delaying rolling out the service while it focuses on improving its current IT systems. Nationwide intends to roll-out the service in 2015, while Ulster Bank is finalising plans before announcing a launch date.
Mobile banking and payments are continuing to gain popularity in the UK, with digital banking transactions reaching £1 billion each day according to a recent British Bankers’ Association report.