How Paym mobile payments system works (only in the UK)

                                                         

A new payments system that allows bank customers to send money using just a mobile phone number will launch later this month.

The service, called Paym, will be integrated into existing mobile banking apps and allow users to transfer money without needing a sort code or account number.

Some 30m customers of nine banks and building societies can register for the service from today, before it goes live on April 29.

The institutions taking part in the launch are Bank of Scotland, Barclays, Cumberland Building Society, Halifax, HSBC, Lloyds Bank, Santander and TSB bank. Customers of Danske Bank can register from April 25.

Paym, an industry-wide collaboration led by the Payments Council, is the first service with the potential to link every current account in the country with a mobile number.