Mobile payment adopters driving ‘sharing economy’ trends

By | Press releases
  • Paym celebrates its first anniversary; nearly £44m sent in the last 12 months
  • Mobile payment adopters four times more likely to be happy sharing money with friends and family
  • Nationwide Building Society set to join service in May

People who use mobile banking are four times more likely to be happy sharing money with friends and family, according to new research from Paym, the easy way to pay using just a mobile number.

Marking the first anniversary of its launch on 29th April 2014, Paym has already processed nearly £44 million of payments. Paym is available through 16 banks and building societies covering more than 90% of UK current accounts, with 2.25 million customers’ mobile numbers now registered to receive payments through the service. The Paym service is growing further still – Nationwide Building Society will join in May.

Attitudes to sharing money with friends and family are shifting. At launch, Paym revealed reluctance among UK consumers to self-identify as a borrower of money from others, with only one in eight (12%) people willing to do so. This figure has increased 33% in the last year, with one in six (16%) now happy to say they use IOUs with friends and family as an easy way to share costs.

The most recent survey also revealed that users of mobile payment services are far more open to sharing money with others – 58% are happy to, compared with 15% of all adults.

Paym users Overall
Agree that sharing money is a sign of true friendship 83% 53%
Think it’s nice to be able to share money with people and don’t mind doing it 81% 37%
Share money without feeling need to agree payback date 69% 42%
Happy to share money with friends and family 58% 15%
Would ask to share cost for group activity and payback later 58% 15%
Overall, try to avoid lending money to other people 19% 63%

The growth of Paym and increased willingness to share money with friends and family comes against the backdrop of the rise of the sharing economy. Internet-based companies enabling services such as car sharing, house rental and even pet sharing are starting to take off – a report for innovation charity Nesta1 found 25 per cent of UK adults used internet technologies to share assets/resources over the last year.

Craig Tillotson, Managing Director of Paym said:

“Advances in technology are making sharing easier than ever – Paym means you can pay back friends and family using just their mobile number.

“We’re using our mobiles more than ever – and not just for phone calls. When you add this trend to the wider growth in the sharing economy, mobile payments look set to be a real growth area over coming years.”

The most up-to-date analysis (29 April 2014 to 30 March 2015) of Paym statistics show:

  • 2.25million registered users
  • Nearly £44million transferred
  • Average Paym transaction value is £55
  • Friday and Saturday are the most popular days for payments.

Paym found 18 to 24-year-olds are most likely to borrow and lend money among friends and family as a regular part of managing their money. They transfer money every few weeks for drinks (51%), food (40%) or transport costs (31%). Over half (51%) of workers and colleagues collate IOUs purchasing coffees and lunch for each other.

There is an agreed etiquette about sharing money, with £100 deemed the largest amount most people feel comfortable sharing. Three quarters (74%) say that the reason for borrowing money should always be explained and they also have the right to turn down a request for money if they do not approve of what it is for (77%).

ENDS

To download a copy of this press release please click here.

For further information please contact:
Consolidated PR – 020 3697 4386 paym@consolidatedpr.com
Paym Press Office – 020 3217 8441/ 8251/ 8316/ 8368.
press@paym.org.uk @paymnow

Notes to Editors:
  1. Nesta: Making Sense of the UK Collaborative Economy (September 2014) http://www.nesta.org.uk/publications/making-sense-uk-collaborative-economy

More than 40 million customers are now able to register for Paym – representing over nine out of ten current accounts. Customers of Bank of Scotland, Barclays, Clydesdale Bank, Cumberland Building Society, Danske Bank, first direct, Halifax, HSBC, Lloyds Bank, Santander, TSB and Yorkshire Bank are able to send and receive Paym payments.

Customers register their mobile number directly with their participating bank or building society, and decide which current account they want to receive payments to. Further information, and details of how the service works are available on paym.co.uk

Isle of Man Bank, NatWest, RBS and Ulster Bank customers are able to receive Paym payments with the ability to send payments coming for these customers from the middle of 2015. Nationwide Building Society is joining in May 2015.

What is Paym?
  • Paym is an easy, secure way to send and receive payments to a current account using just a mobile number
  • Paym means there is no need to ask for other people’s sort code or account number, or tell them yours
  • Anyone using Paym to send money can check the name of the recipient before confirming the payment, so they can be sure they’re sending it to the right place
  • Paym is offered to customers by participating UK banks & building societies
  • Payments are made through Faster Payments or LINK at the same speeds as existing current account, online, and mobile payments