Ashley Park Financial Solutions were intrigued by a recent article describing new mobile software that will allow users to transfer money quickly and easily using nothing more than a telephone number. The service, known as Paym (pronounced “pay ‘em”) will be made available to 30 million people when it goes live on the 29th of April.
People who bank with TSB, Bank of Scotland, Barclays and Halifax amongst others, will be able to register their mobile numbers from today in anticipation of the full service at the end of the month. They can then transfer cash payments to their contacts without needing to know their bank details.
Users wishing to receive payments must actively register their number alongside the current account that they wish to use. Users only wishing to send money do not have to register for Pym, but their bank must be taking part in the scheme. You will be asked to confirm the name of the recipient and the amount you want to transfer before going ahead.
The software has been developed following research carried out by the Payments Council, who found that on average, people rack up around £256 in informal loans and IOUs amongst their family, friends and acquaintances. Annually this adds up to a whopping £12.6 billion!
This research is based on the idea that adults in the UK are lending just under £5 every week to someone they know. This could be for a sandwich, bus fare or a can of pop. These amounts tend to add up over time and we never see the returns. With Paym, recipients will immediately be able to pay back their lenders.
While it is mostly intended to aid small payments, users will be able to transfer at least £250 a day if they want to. It is up to the banks themselves whether they want to place a higher cap on day to day payments.
People can find out more about registering for Paym by visiting paym.co.uk or ask their bank or building society. Here at Ashley Park Financial Solutions we think this is a great idea and the perfect means of getting your money back without nagging friends or feeling awkward.