Paym hits £70 million mark

Paym hits £70 million mark

British bank-backed person-to-person mobile payments service Paym is experiencing solid if unspectacular take-up, recording more than three quarters of a million transactions in the first half of the year.

Launched under the Payments Council umbrella last Spring, Paym lets users make payments from within their financial institutions' app by simply using a mobile phone number as a proxy, without the need to disclose sort codes and account numbers.

With 17 banks and building societies signed up, the service covers more than nine out of 10 UK current accounts. However, only 2.6 million people have registered, and far fewer have actually made payments.

So far, just 1.25 payments worth £70 million have been made through Paym, although the figures show that activity is increasing quarter on quarter. In Q2 2015 the service was used for 416,000 payments worth £23.1 million, compared to just 157,000 payments worth £8.5 million in the third quarter of 2014.

There has also been a shift in how the service is used. In the first half of the year almost three quarters of Paym transactions were made on weekdays, compared to just two thirds in the second half of last year.

Currently, the most common reason for using Paym is paying people back money owed for petrol (25%), helping with bills (22%), paying back IOUs (22%), household costs (19%), and splitting lunch or dinner (19%).

Craig Tillotson, managing director, Paym, says: "Paym continues to grow and it’s interesting to see we’re using it more for weekday money management as well as Saturday’s socialising."

Comments: (5)

Dave Sanderson
Dave Sanderson - YBS Group - Bradford/Leeds - UK 12 August, 2015, 09:231 like 1 like

I don't think that the lack of uptake should be seen as a failure on the service, I think it works really well. The key is, as with all of these kind of things, is the education of it's potential users.

I dream of the day when I can pay my window cleaner via PayM rather than having to remember to withdraw cash.

Jeremy Light
Jeremy Light - pingNpay - London 12 August, 2015, 13:581 like 1 like

These figures show Paym transaction volumes growing at about 40% per quarter, or ~270% per year, which is impressive. Extrapolating forward at this rate, transaction volumes will hit one billion txns p.a. within five years - at this point Paym will be as mainstream in the UK as contactless card transactions are today.

Exrapolating payment volume growth like this, in my experience tends to work, I assume due to network effects. UK contactless card transactions are a case in point - they had a slow start at launch in 2008, but in fact have been growing at up to 200% - 300% p.a. consistently since. They could easily reach one billion transactions this year, and even if growth slows, two billion UK contactless card transactions are feasible next year.

For Paym, it is easy to see what will drive this growth: the dramatic growth in mobile banking (where banks tend to put Paym functionality), and the Faster Payments Scheme opening up access to its infrastructure to both bank and non-bank PSPs - this allows direct technical connection to FPS, hence access to guaranteed real-time payments which are core to the Paym proposition. Imaginative uses of Paym in all sorts of apps and services are sure to follow. Paym has a bright future.

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 12 August, 2015, 16:52Be the first to give this comment the thumbs up 0 likes

The growth since PayM's first anniversary - volumes of GBP 70M now versus 44M then - is impressive. However, in absolute terms, this is a drop in the retail payments ocean and reinforces my earlier observation that P2P is a very low volume type of retail payments. 

Paym celebrates first anniversary

Dean Wallace
Dean Wallace - ACI - Global 13 August, 2015, 11:16Be the first to give this comment the thumbs up 0 likes

My bank app has a little button in the menu called "Paym" which gives good information on what it is. "Cool" I think, "I will have to use it". I just need to remember when I am not at work / on a bus / in a pub / out walking (you get the picture) to open up my creaking laptop, ignore the multitude of Windows update alerts, open my browser, go to the bank, get my card reader out, go back to the hall to retrieve my wallet, log in, activate. Done! 

I will get round to it at some point, I promise myself. I think to myself "If only I could just activate from my mobile bank, I did think that was secure after all....". Then promptly forget again

A Finextra member
A Finextra member 14 August, 2015, 08:13Be the first to give this comment the thumbs up 0 likes

Ok figures, but I think ZAPP will be the service for instant money transfer  in UK.

Sweden's direct account to account mobile money transfer service Swish shows incredible figures and have the same amount transferred per month as Paym as in total, £70M. Sweden has 10M people and 3M are active Swish users. I believe that Swish is one of the greatest successes in the world..  

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