News

UK banks decide to shut down the Paym payments system

Thursday 29 September 2022 13:45 CET | News

Pay.UK and fifteen of the UK’s banks and building societies have decided to shut down the Paym payments system due to diminishing transaction volumes.

 

Paym was launched in 2014 and will close down for good on 7 March 2023 as its design can no longer keep up with the current evolution in payments technology and services. According to the official press release, UK consumers are shifting towards newer forms of mobile payment and access to faster payments through online banking. 

As for the closure process, Pay.UK will maintain a close relationship with the banks and societies involved in order to minimise any disruption for current Paym users. Moreover, the banks in question will maintain an open line of communication with their customers before the closure date to make them aware of the changes and what it means for them.

 

Pay.UK and fifteen of the UK’s banks and building societies have decided to shut down the Paym payments system due to diminishing transaction volumes.

 

An overview of the Paym payments system 

Paym was launched in April 2014 and was designed as a quick and easy way to receive payments from friends, family members, or clients. One of the key characteristics of the service is that users only need the recipient’s mobile phone number in order to initiate a transfer. 

If the recipient hasn’t yet activated a Paym service when the transfer goes through, he or she receives a text message that provides basic information about the transfer, why it failed, and how the user can activate the banking app. In order to receive money, one simply needs to open their banking app and supply their mobile number. The registration process can be different depending on the user’s bank. 

Paym can also be used to receive payments from business clients or club members. Customers can make payments through their mobile banking or payments app by selecting the user’s phone number from their contacts or entering it manually. Customers are then presented with the user’s business account name before confirming the payment. 

According to the Paym website, customers trust this payment system because it was developed by the same people who run the services that move mobile and internet banking payments between the UK’s banks. Moreover, payments are made at the same speed as other existing mobile or online payments, sometimes instantaneously. 

The Paym service is supported by fifteen banks and building societies, namely the Bank of Scotland, Barclays, The Cumberland, Danske Bank, first direct, Halifax, HSBC, Isle of Man Bank, Lloyds Bank, the Nationwide Building Society, NatWest, the Royal Bank of Scotland, Santander, TSB, and Ulster Bank.

More: Link


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: mobile payments, payments infrastructure, instant payments, mobile banking
Categories: Payments & Commerce
Companies: Paym
Countries: United Kingdom
This article is part of category

Payments & Commerce

Paym

|
Discover all the Company news on Paym and other articles related to Paym in The Paypers News, Reports, and insights on the payments and fintech industry: