Paym has announced as of Tuesday, April 29, you can pay using your mobile number. Customers of participating banks and building societies can start to register their mobile number to receive payments through Paym as soon as the service is live.
According to IOU UK, a new research commissioned to launch Paym, established that UK consumers spend on average of GBP255.81 each year on informal loans to each other, which reach a total value of GBP12.6bn.
Adrian Kamellard, Chief Executive of the Payments Council said: “Our IOU research suggests that every adult in the UK is lending just under £5 per week to someone they know. Small sums like this soon add up so it’s great that Paym will give people a new option of quickly and securely paying someone back – whether it’s for lunch, a train ticket or just a cup of tea.”
Paul Flatters, Chief Executive of Trajectory Partnership a consumer trends forecasting consultancy, which conducted the research, said: “We found that when it comes to IOUs, people are four times as likely to identify as lenders than borrowers. One reason for the overall imbalance between perceptions of lending and borrowing may be our innate instinct for loss aversion. Human beings strongly prefer avoiding losses to acquiring gains.”
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