So far, 9 banks and building societies have begun using the service, which now allows customers of each bank to also use the payment service.
Providers who have adopted Paym include the Bank of Scotland, Barclays, Cumberland Building Society, Danske Bank, Halifax, HSBC, Santander, TSB and Lloyds Bank. Additional banks have committed to adopting the service by the end of 2014. They include Clydesdale Bank, First Direct, NatWest, The Royal Bank of Scotland, Ulster Bank and Yorkshire Bank. Nationwide Building Society has confirmed to join in 2015.
Customers of the UK-based money service can send up to £250 a day. Some institutions that use the service may raise the limit if they choose to do so.
To send money, no codes or account numbers are required; just a mobile phone number. Those without smartphones can still register to receive payments, but the Paym app is required to send money.
uSwitch.com’s telecoms expert, Ernest Doku, says that phone thefts have placed fear over the release of the service. He stated:
“It remains to be seen if Paym can build enough trust in consumers – as well as deliver a simple and secure payment method – in order to promote mass uptake.”
Paym’s Impact on Bitcoin
Paym might pose a potential threat to bitcoin, as it borrows bitcoin’s instantaneous money sending power. Its creation was devised to make payments more convenient for customers.
Similar to bitcoin, money can be sent with as little as a smart device and transactions are mostly digital. With the backing of so many banking institutions, Paym is already a step ahead of the digital currency. Bitcoin has been around for more than four years, and has yet to gain support of major banks. Paym has only existed for a few weeks.
Only time will tell whether or not Paym becomes a force too strong for bitcoin to overcome.
Let us know what your thoughts are on Paym in the comment section below.