Paym is a new mobile payment system that allows you to send money to friends using just their mobile number. If the new technology takes off what will this mean for driving lesson payments?
Let’s take a look at the details and see if Paym has the ability to become a future tool for driving instructors.
What is Paym?
Paym is not an app, it’s a tool that now sits in your banking mobile app and allows you to connect your current account to your mobile phone number – allowing people to deposit money into your account using your mobile number.
The new tool, from the Payments Council who oversee all payment services in the UK, is designed to it make peer-to-peer banking easier and potentially safer. Instead of handing over your account number and sort code, your friend just needs your mobile number, which they most likely already have, to send money into your account.
How does Paym work?
First step – register (for free) your mobile number to your current account through your mobile banking app.
There are currently 9 banks signed up to use this new service; Bank of Scotland, Barclays, Cumberland Building Society, Danske Bank, Halifax, HSBC, Lloyds Bank, Santander and TSB. Others are set to join the service soon.
You’re now set-up to receive Paym payments. Your friends can log into their mobile banking app, select your number and request payment to be sent to you. They will receive a confirmation stating your name which they will have to approve and then a final confirmation text will be received and you’ll have the payment in your bank within two hours.
Check out this live demo with Rory Cellan-Jones from the BBC and HSBC’s head of mobile banking, George Charalambous. Watch this Paym Demo
Adrian Kamellard, chief executive of the Payments Council, said: “Paym is a great example of industry-wide collaboration that delivers tangible benefits for customers.
“The service has the potential to link up every bank account in the country with a mobile number – millions of people will be able to use it this year and we look forward to expanding Paym even further, so everyone can benefit from this easy, secure new way to pay.”
Paym officially launched yesterday (Tuesday, 29 April) with 360,000 people already registering for the new payment tool.
Who can use Paym?
The Payments Council suggests that the biggest use of Paym will be around personal I-O-Us. So, you’ve lent £10 from your friend at the bar and you want to pay them back – this is where Paym might fit in.
But, what about driving instructors?
Some research by the Payments Council has suggested small businesses might benefit from this new app too. We want to find out your thoughts but first, tell us what payment methods you accept for your lesson prices by ticking the options below. We will post the results on Facebook next week.