Paying by mobile phone

Next week the banking body, the payments Council, is launching its way of letting you pay friends and traders using just your mobile and mobile phone numbers. It's called Paym.

There are lots of other new payment ideas on offer, including Pingit and Zapp, but in Paym's favour is that it is backed by all the leading banks.

RBS/NatWest isn't on board yet, though it will be soon. So will Nationwide and First Direct.

Here are some questions I fired at the Payments Council...

Can you register for Paym yet?
Yes, but you have to do it through your bank.

What if you have a joint account?
You can both attach you mobile phone numbers to the same account. However, you can't use the same mobile number for two different accounts.

What if you enter the wrong mobile number when paying someone?
Once you have entered the person's number, the name attached to that number will appear on your phone, so you will have to check that before confirming the payment. So there is a possibility of making an incorrect payment, but they have reduced the risk.

How quick is the payment?
Almost instant, via Faster Payments or LINK. The service standard is "within 2 hours".

What if you don't have funds in your account?
It is the same as if you paid using another method. Either you go into agreed overdraft. Or, if you don't have an agreed overdraft, your bank will have to make a decision and may charge you.

How will a payment appear on your bank statement?
It will have a special code, so it is likely to have Paym typed beside it.