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Will Paym Be Another Step on the Road to End of Actual Money?

Will Paym Be Another Step on the Road to End of Actual Money?

Paying By Phone: Is There Anything That Can’t Be Done on a Phone Now?

Extravagant claims are frequently made about the uses to which smartphones are now being put. But the ones about using them for everyday payments look set to be proved right.

The British Bakers’ Association reckon the number of phone banking transactions doubled to approaching 6m per day last year.

The UK payments Council predicts that the new Paym (pronounced pay ‘em) will be used more than a billion times in the next four to five years as the system enabled to link up every bank account in the country with a phone number gets going.
Paym Now, Paym Right

This is the first banking industry wide collaboration which by the end of this year will be available to over 90% of current account holders. The technology for this was pioneered in Kenya by telecoms company Safaricom some five years ago.

Cash payments will be made by smartphone by using the recipient’s number instead of their bank account number, sort code and name.

Registration will be necessary to send/receive money through it, but once that is done the service will integrate through the customers’ existing mobile banking or payment apps.

Users will simply select from phone contacts or key in new number, confirm the name and click, bill paid, cash transferred. Just like that. All customers will need is a phone number.

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Blogs about smartphones, money and banking of interest:

Bitcoins Can’t Buy Me Love, 10 March 2014

Banking Set to Look Like Convenience or Fast Food Stores Soon, 21 January 2014

Has Technology and All Its Devices Become Too Much of a Good Thing? 30 October 2013

Is the Fantasy of the Smartphone Getting Silly Now? 12 June 2013

Digital Currency Spells the End of Paper, Coin and Gold Backed Money, 14 May 2013

Death of the High Street in the Digital Age Is Over Exaggerated, 4 March 2013

The Cult of the Smartphone Finally Replaces Common Sense, 13 February 2013

50 Ways to Use a Smartphone, 8 August 2012

Another Week, Another Systems Malfunction, 3 July 2012

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Which Banks First?

Paypal’s money transfer app has been around since 2008, Barclays’ Pingit since 2012. Paym will take in almost every bank eventually.

Bank of Scotland, Barclays, Cumberland Building Society, Danske Bank, Halifax, HSBC, Lloyds, Santander  and TSB will have the service from launch on 29 April.

Later this year Natwest, Royal Bank of Scotland, Yorkshire Bank, Isle of Man Bank, First Direct and Clydesdale will follow. Metro Bank are ‘finalising plans’ and Nationwide will join early in 2015.

Presumably any bank outside that list will be driven to join before too long. There is also to be a  new mobile service, Zapp, for shopping and services due to launch this autumn.

It is surely another nail in the coffin of high street branch banking and cash in society?

Image: Morgan