New payment service, Paym, launched in the UK yesterday, enabling bank customers to send money using just their mobile phone number.
Backed and developed by The Payments Council, over 300,000 people have already registered for the new service since registration opened three weeks ago, with nine banks and building societies on board at launch.
The Paym service enables even more consumers to use mobile as a fast, secure and convenient payment channel, reflecting the global trend toward mobile payments.
Earlier this year MEF released its Mobile Money Insight Report which indexed the motivations of consumers in adopting mobile payments in all its forms. The headline stats from the report underlined the global shift to mobile payments and indicates that the use of mobile as a payment channel in all its forms is well underway. The report showed that:
- 15 per cent of mobile media users used mobile payments to pay for goods in 2013.
- Mobile money users are 26 per cent more likely to buy via mobile than average.
- Africa continues to dominate mobile banking uptake with an average of 82 per cent of consumers engaged in this activity (globally it’s 66 per cent).
- Network speed is important: two thirds of 4G customers have made an m-payment.
A report released to coincide with the launch showed that although one in four customers plan to use the service, there are widespread concerns about security, with 71% saying that they were apprehensive about the security of the new payment channel, and nearly half of those polled saying that they definitely would not use the service. The business critical issue of consumer trust has been previously identified by MEF’s Global Consumer Survey series as the greatest barrier to widespread adoption of mobile services.
Andrew Bud, Global Chairman at MEF said: “The Paym service enables even more consumers to use mobile as a fast, secure and convenient payment channel, reflecting the global trend toward mobile payments. But providers of mobile payment services need to be mindful of the primary importance of consumer trust, which stands in so many places as a big barrier to adoption. All the reports in our insight series show that this a primary concern for mobile consumers. This means not just doing a great job but providing a seamless user experience and communicating effectively to users just how secure mobile money really is.”