With backing of major banks, UK mobile payments system Paym launches

The U.K. mobile payments system Paym, which has the backing of most major U.K. banks, launched this week with the ability to serve more than 30 million users, announced the Payments Council, which oversees the Paym system.

Banks participating in the system are Bank of Scotland, Barclays, Cumberland Building Society, Danske Bank, Halifax, HSBC, Lloyds Bank, Santander and TSB. That number is expected to expand this year, increasing the number of eligible users to 40 million.

At launch, 360,000 people had registered for the program, the Guardian newspaper reports.

The Paym system enables people to send and receive payments to a current banking account using a mobile phone number. A user can send up to £250 per day using Paym, although some banks offer a higher daily limit, the Payments Council explains.

Users can make payments for goods and services by selecting the phone number of the person or business receiving the payment from a contacts list or manually typing it. Users can receive payments by registering their mobile phone number with Paym and indicating the bank account they want to use for the mobile payments.

The Payments Council estimates that 1 billion Paym payments will be made by 2018.

According to research by Consumer Intelligence, one-quarter of U.K. bank customers said they plan to use Paym, and that figure rises to 39 percent for those 18 to 34 years old. On the other hand, nearly half said they would not use it because of security concerns.

For more:
- see the Payments Council announcement
- read the Guardian article
- check out the Paym site

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