HSBC introduces Paym pay-by-phone serviceComments Off on HSBC introduces Paym pay-by-phone service
HSBC has announced that its business customers will be able to receive payments directly to their accounts using the new Paym service.
Paym, which is an industry-wide initiative which has the potential to eventually link up every current account in the country with a phone number, was launched at the end of April.
The initiative already allows people to send cash to friends and family but HSBC’s move will mean that it can also now be used to pay tradesmen, shops and small firms.
Banks and building societies are joining the initiative in waves and from this week onwards customers of Clydesdale Bank, Isle of Man Bank, NatWest, Royal Bank of Scotland, Ulster Bank and Yorkshire Bank have been able to register for the service.
They have joined HSBC, Bank of Scotland, Barclays, Cumberland Building Society, Danske Bank, First Direct, Halifax, Lloyds Bank, Santander and TSB which have all already started offering Paym.
This means that from this week 40 million consumers have the ability to register for Paym if they want to – representing more than nine in 10 personal current accounts.
So far, 1.6 million people have registered their mobile number with their bank or building society to receive payments through Paym and more than £15 million has been sent.
Although it is anticipated that many people will use Paym to make small payments, they can transfer at least £250 a day under the scheme if they want. Banks and building societies can choose to set a higher daily limit.
HSBC said that for the first time businesses will now be able to accept mobile-only payments via Paym.
It said that the majority of its business customers already frequently use its business internet banking service, with more than 600,000 registered users.
It said businesses will now be able to receive payments from their customers directly into their business accounts using just a mobile number and without the need to get full account details.
HSBC’s business internet banking customers will need to register mobile phone numbers online in order to receive payments from customers at any bank or building society that offers Paym. Up to 50 mobile numbers can be registered.
The maximum size of a payment that a consumer will be able to make to a business in this way will depend on the daily limit set by the consumer’s own bank or building society.
HSBC has not put any limits on the amount of cash that a business can receive in a transaction using Paym.
Although HSBC’s service will currently be limited to businesses receiving payments, it said it will be reviewing the feasibility of allowing small businesses to also send payments via Paym.
HSBC highlighted the case of one of its business customers, named Wayne Fennell, who said he is keen to sign up to Paym.
Fennell, a Hertfordshire-based plasterer, said: “I do various sizes of job, ranging from large to smaller quotes, which means keeping an eye on cashflow is important.”