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Security fears prevent customers from using the Paym m-payments technology

Thursday 1 May 2014 06:48 CET | News

20 million bank account holders will have no immediate access to the new Paym mobile payment technology, online media outlet BBC reports.

More than 5 million, mainly customers of the Nationwide Building Society, will not be able to use the system fully until 2015. Other banks, including Metro Bank and some of the smaller building societies, have not set a timetable for joining the scheme. RBS, whose customers have faced a series of computer problems over 2013, mentioned that improving its IT systems is a higher priority.

The reluctance of several banks is not the only issue. According to a survey from the market research company Consumer Intelligence, only a quarter of customers will be using the service, while 47% of account holders will not be using Paym at all. The same source mentions that their biggest fear is related to security.

David Black from Consumer Intelligence declares that fraud is like a balloon and banks need to stay alert and have the highest level of mobile fraud protection for customers.

The Paym service enables people to transfer money by using mobile phone numbers and can currently be used by customers of the Bank of Scotland, Barclays, Cumberland Building Society, Halifax, HSBC, Lloyds Bank, Santander, TSB and Danske Bank.
 


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Keywords: online security, fraud, Paym, mobile payments, UK
Categories: Fraud & Financial Crime
Companies:
Countries: World
This article is part of category

Fraud & Financial Crime