Paym, the UK’s new mobile payments service, is now available to 30million people across the UK. Instead of using account numbers and sort codes, you can now send cash to family and friends via a mobile phone number. There are also plans for you to be able to send money to businesses and it could eventually lead to your mobile phone replacing your cash, cards and wallet.
But is it safe?
Technically the service uses the same security features as current mobile banking apps, so it operates under a high degree of security, but half of the people surveyed in a Consumer Intelligence survey said they definitely would not use the service, citing security concerns and the fear of money going missing. Consumers know that fraudsters are becoming ever more imaginative in their attacks and with every new advance in banking technology, such as this one, comes a new fraud risk.
Regardless of new fraud threats, Paym will be a major shakeup of the payments world; bringing with it new opportunities, services and innovations as well as new fraud risks. Widespread adoption of this technology, and it eventually replacing traditional payment methods, will be dependent on public confidence and fighting new fraud that arises through Paym will be the key to establishing and maintaining that trust.